Answer: Total product cost per unit if 12,500 units = $13.
Explanation:
Given that,
Direct labor = $2
Direct material = $3
Variable overhead = $4
Total variable cost = $9
Fixed overhead ($50,000/10,000 units) = $5
Total product cost per unit = $14
Fixed Overhead at 12500 units =
= $4
∴ Total product cost per unit if 12,500 units = Total variable cost per unit + Fixed Overhead at 12500 units
= 9 + 4
= $13
Answer:
Tv = 1772
Remote = 144
Installation = 144
Explanation:
To calculate stand-alone selling price we need to calculate the percentage of Fair market value first and then allocate the Entire package price in the products according to the percentage of fair market value.
Percentage of the fair market value of each product
Product Fair Value Percentage
TV $1830 86%
Remote $140 7%
Installation $140 7%
Total $2,110 100%
Stand-alone selling price
Product % of fair market value Stand-alone selling price
TV 86% 1772
Remote 7% 144
Installation 7% 144
Total 100% 2,060
Return on Investment = 83% or 0.83
total Profit = 75000
term = 6 yrs
annual profit = 75000 / 6 = 12500
initial investment = 15000
ROI = Net Profit / Total Asset
= 12500 / 15000
= 0.83 or 83% (0.83 x 100%)
Answer: The web team can create a FAQ page.
Explanation: FAQ is an abbreviation for Frequently Asked Questions. A FAQ page is a page on an c ecommerce store, where answers to important questions about a company or its products and services have been stored. This is done to clarify the uncertainties of customers and show them how the company or its products and services work.
This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page
Answer: (b) -3.08
Explanation:
The relationship between the demand(q), price per unit product(p) and the disposable income,yd is given by the expression below;
q= 20ln(7yd-2p).
From the expression above, the marginal demand,
∂ q/∂ p is the differential of the equation of relationship between the demand, price and disposable income.
This involves considering the demand,q as the dependent variable and the price per unit product,p as the independent variable and the disposable income,yd is considered constant.
Therefore ,
∂ q/∂ p= (-40)÷(7yd-2p)
By substitution of
yd =$3000÷1000= $3
and p= $4
∂ q/∂ p= (-40)÷((7×$3)-(2×$4))
∂ q/∂ p= -40÷13= 3.08
Please see the attachment for knowledge on how ∂ q/∂ p was obtained.