How are quotes and voluntary export restraints similar?

Assume the company is considering a reduction in the selling price by $10 per unit and an increase in advertising budget by $5,0

ivanzaharov [21]

Answer:

Net Operating income after change is $25,000

Explanation:

Increase in price will increase the sales value, it will increase the contribution margin as well. Increase in advertisement expense will be added to fixed cost. which will decrease the net profit by $5000. Net effect will be $5000 of profit.

Increase in Price = $110 + $10 = $120

Fixed Cost = $30,000 + $5,000 = $35,000

Sales $120,000 1000 units @ $120 100 %

Variable expenses $60,000 1000 units @ $60 50 %

Contribution margin $60,000 1000 units @ $60 50 %

Fixed expenses $35,000

Net operating income $25,000

* Data for the question was missing following data has been used from the similar question

Selling price $110,000 1000 units @ $110 100 %

Variable expenses $60,000 1000 units @ $60 55 %

Contribution margin $50,000 1000 units @ $50 45 %

Fixed expenses $30,000

Net operating income $ 20,000

7 0

3 years ago

What should you do to change a value in si units to a value in u.s. customary units?

stiks02 [169]

Use a conversion factor.

3 0

3 years ago

Read 2 more answers

Company expects to produce 1 comma 620 units in January and 1 comma 885 units in February. Yandell budgets five direct labor hou

nadezda [96]

Answer:

January:

Direct labor cost= $72,900

February:

Direct labor cost= $84,825

Explanation:

Giving the following information:

Production:

anuary= 1,620 units

February= 1,885 units

Yandell budgets five direct labor hours per unit.

Direct labor costs average $ 9 per hour.

First, we need to determine the number of direct labor hours for each month:

January= 1,620*5= 8,100

February= 1,885*5= 9,425

Now, we can calculate the budgeted direct labor cost:

January:

Direct labor cost= 8,100*9= $72,900

February:

Direct labor cost= 9,425*9= $84,825

4 0

3 years ago

7. Gulf Real Estate properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000

oksano4ka [1.4K]

Answer:

The answer is "135 days"

Explanation:

Condo with a list price of Gulf View $= \$589,000$

They recognize for a Gulf View the preciously calculated summary analysis

The average cost list for a condominium is474.0075 and that average sale value is 454.245.

$\to \$474,000 -\$454,245 = \$20,755$

We also are selling $20,755 underneath the selling price on average.

$\to \frac{20,755}{474,000} = .0437869198$

Therefore a typical condominium in the South View is selling 4.38% well below the price list.

$\to 589,000 \times (1- .0438)=563,209.5042$

The estimated sales price is thus approximately $563,210

The amount of times that mine device needs and be delivered is an approximate 106 days of median number calculated at a number 1.

No condo Gulf Views $285,000 List price

Through the previously calculated concise figures, we learn that the average price list is 212.805556 for a Non-Gulf View Condominium or that the total selling price is 203.133333.

$\to \$212,806 -\$203,133 = \$9,673$

We sell $9,673 below the value of the total on average.

$\to \frac{9,673}{212,806} =.045454545$

Therefore a condo in No Gulf Vision offers on aggregate 4,545% well below the selling price.

$\to \$285,000 \times (1-.04545)=272,045.4545$

The average price is therefore approximately $272.045.

My projected place to trade this unit is the number of days in number 2 measured to be 135 days.

3 0

3 years ago

A company started the year with "$185,000 of goods finished" and ready for sale. During the year, a total of $700,000 of goods w

gulaghasi [49]

Answer:

$110,000

Explanation:

The closing balance in the finished goods inventory account is a function of the opening balance and the net movement that occurred during the year.

As such, the closing balance

= opening balance + purchases/production - sales

Given;

opening balance = $185,000

purchases/production = $550,000

sales = $625,000

Therefore,

closing balance in the finished goods = $185,000 + $550,000 - $625,000

= $110,000

6 0

3 years ago