1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Crank
2 years ago
10

16) margin company has total fixed costs of $360,000 and variable costs of $14 per unit. if the unit sales price is reduced from

$24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65,000 units. should margin reduce its per unit sales price and pay for the additional advertising? (support your answer with calculations.)
Business
1 answer:
Goryan [66]2 years ago
5 0

The total cost per unit will decrease.

The total cost per unit will be decreased when more number of units are produced.

Firstly ,we calculate fixed cost per unit.

Fixed cost per unit = Fixed costs/ New sales produced.

Cost per unit when company has 3600unit of sales= 14700$/3600= 41$cost per unit.

If the company, doubles his sales then the cost per unit is calculated as Fixed cost/No.of sales.

Cost per unit = 131,200$/ 7200

                      = 18.22$ cost per unit.

So, the total cost per unit is calculated as 42.00$+ 18.22$= 59.22$.

Fixed costs are independent of output, therefore regardless of shifts in production volume, the dollar amount incurred is roughly constant. The recurring occurrence of a company's fixed costs results in a predetermined timetable and dollar amount associated with each cost.

Fixed costs are far more predictable and simpler to prepare for in advance because they must be met regardless of how well sales perform and how much is produced. There is little to no link between production output and total fixed costs, in contrast to variable costs, which fluctuate based on output.

To learn more about fixed cost, refer this link.

brainly.com/question/6838514

#SPJ4

You might be interested in
Susan recently quit working for a local firm and has yet to find a new job. She knows she can maintain her health insurance from
PtichkaEL [24]

Answer:

Susan will have to pay $525 for her health insurance.

Explanation:

The total amount paid to the health insurance is $200 by Susan and $325 by the employer which summed up to $525.

As now the employer is no longer paying the amount for the health insurance, so now Susan has to pay $525 herself for the health insurance.

7 0
3 years ago
Undesirable traits that a person should avoid when driving are
krek1111 [17]
Not paying attention to the road, listening to loud music (distracting), and TEXTING WHILE DRIVING. That is one of the leading causes of death.
4 0
3 years ago
Read 2 more answers
Tracy and Lance, equal shareholders in Macaw Corporation, receive $600,000 each in distributions on December 31 of the current y
Lorico [155]

Answer:

B. $300,000

Explanation:

Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend

6 0
3 years ago
In year 2, Sammi Corp. changes its inventory method from FIFO to the weighted-average method. Under the weighted-average method,
Dima020 [189]

Answer:

Two adjustments must be made to year 1's financial statements:

  1. The income statement must be adjusted since net income increased because cost of goods sold decreased.
  2. The balance sheet must be adjusted since retained earnings will increase because net income increased.

Explanation:

The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.

6 0
3 years ago
marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses a
Scorpion4ik [409]

The correct answer is $35750

The amount of depreciation that should be allocated to drilling for the current period is $35750

<h3>How does depreciation work?</h3>

Depreciation is the process of subtracting the entire cost of an expensive item you purchased for your company. However, you write off portions of it over time rather than completing it altogether in one tax year. Depreciating assets gives you more control over your budget because you may schedule how much money is written off annually.

<h3>How much depreciation should be devoted to drilling throughout the current time frame?</h3>

Office costs: Salaries are $30,000, depreciation is $20,000, and advertising is $40,000. The total number of employees for drilling and grinding is 2500.

The overall net sales for drilling are 375 000, for grinding they are 450 000.

Drilling costs are 75,000, grinding costs are 125,000, and overall costs are 200000.

then,

Salaries: $30,000×\frac{1000}{2500}=$12,000

Depreciation: $20,000×\frac{75000}{200000}=$7,500

Advertising: $40,000×\frac{325000}{800000} =$16,250

Total $35,750

To know more about depreciation work visit:

brainly.com/question/14864259

#SPJ4

question options are wrong the correct question is:

marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses are allocated to the two operating departments using different allocation bases. the following information is available for the current period: office expenses total allocation base salaries $ 30,000 number of employees depreciation 20,000 cost of goods sold advertising 40,000 percentage of total sales department number of employees sales cost of goods sold drilling 1,000 $ 325,000 $ 75,000 grinding 1,500 475,000 125,000 total 2,500 $ 800,000 $ 200,000 the amount of depreciation that should be allocated to drilling for the current period is: multiple choice $25,000. $12,500. $7,500. $20,000. $35750. this is a correct option.

8 0
1 year ago
Other questions:
  • The most famous restrictive practices case of the last several decades involved a series of lawsuits by:
    8·1 answer
  • Alonzo decides to have a yard sale to sell some of his personal items. At the sale, Alonzo sells Ralph a big screen television f
    5·2 answers
  • Each state heavily regulates the insurance industry. <br> a. True<br> b. False
    10·1 answer
  • Cost Leadership Strategy is one strategy to gain a competitive advantage.
    7·1 answer
  • Explicit costs are payments the firm makes for outputs such as desks for its employees, whereas implicit costs are expenditure c
    8·1 answer
  • Your sole proprietorship makes $90,000 per year in profits. Your average federal tax rate is 24% and your state tax rate is 6%.
    14·2 answers
  • Two differences between purchasing shares on the stock market and saving in a commercial bank
    6·1 answer
  • Which would be an example of a change in culture due to conflict?
    10·1 answer
  • costs that a firm remaining in business will still incur even if it halts current production are called
    6·1 answer
  • Christine hires a deck company to build a deck. The company initially does a terrible job and agrees to rebuild it. A court requ
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!