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mart [117]
3 years ago
8

Wilkes Manufacturing sells one product with a variable unit cost of $18. The company knows that the price charged will affect de

mand. Fixed costs are $275,000. If sales exceed 50,000 units, the company will need to lease additional manufacturing space and equipment at an additional cost of $100,000 per year. The following chart represents the estimated demand at various price levels: Units Demanded Unit Price 25,000 $30 50,000 $28 75,000 $25 100,000 $23 Based on this information which of the following statements is true?a. Selling the units at $23 will generate the largest profit.b. Selling the units at either $23 or $28 will generate a profit of $225,000.c. Selling the units at either $25 or $28 will generate a profit of $225,000.d. Selling the units at $28 will generate the largest profit
Business
1 answer:
Harrizon [31]3 years ago
5 0

Answer:

D. Selling the units at $28 will generate the largest profit.

Explanation:

Explanation : Profit = [ ( selling price per unit - variable cost per unit) * units ] - Fixed Cost

Profit at $28 selling price = [ ($28 - $18) *  50,000 units ] - $275,000 = $225,000

Profit at $23 selling price = [ ($23 - $18) *  100,000 units ] - ($275,000 + $100,000) = $125,000

Profit at $25 selling price = [ ($25 - $18) *  75,000 units ] - ($275,000 + $100,000) = $150,000

Thus we can see that profit is largest at $28 per unit selling price

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In its​ year-end income​ statement, Black Knights Company reported cost of goods sold of​ $450,000. Changes occurred in several
torisob [31]

Answer:

The answer is $330,000

Explanation:

Cash paid to suppliers is the total amount of cash paid to its creditors.

We can find that through:

Cost of sold

Minus: Decrease in inventory

Plus: Decrease in accounts payable

=Cash paid to suppliers.

Now let's start:

Cost of sold - $450,000

Decrease in inventory - $160,000

Decrease in accounts payable- $40,000

$450,000 - $160,000 + $40,000

=$330,000

Therefore, Cash paid to suppliers is $330,000

5 0
2 years ago
Assume that a machine has a useful life of 9 years, and it loses its real value at a constant rate (i.e. 1/9 of the original val
weeeeeb [17]

Answer:

$52,435.00

Explanation:

After 3 years the future value of 100,000 at 6 percent will be

FV = PV × (1+r)n

=FV = 100,000 x (1 +0.06)3

FV = 100,000 x 1.191016

FV = 119, 101.60

The interest will be 119, 101.60 - 100,000

=19,101.60

The depreciation over 9 year period, per year will be

=1/9  x 100,000

=11, 111.11  per year

3 year depreciation = 33,333.33( 11,111.11 x 3)

The investment must generate at least

19,101.60 + 33,333.33

=$52,434.93

=$52,435.00

7 0
2 years ago
Lighting design personnel must: A. Understand environmental, cost, and associated benefits of energy-efficient lighting B. Recog
Setler79 [48]

Answer: All of the above

Explanation:

The Lighting Design Personnel is in charge of the designing, the installation, and the operation of lighting and every other special electrical effects.

Such person must understand environmental, cost, and associated benefits of energy-efficient lighting. Also, he or she must be bake to recognize when specialized knowledge is necessary and also estimate energy cost savings

Therefore, the correct option is all of the above.

6 0
2 years ago
Zack, Gavin and Breana were college friends who decided to go into business together as a party equipment rental service. The th
damaskus [11]

Answer:

im not sure what the answer wold be but you woulkd if you actually did your own work but its b

Explanation:

8 0
3 years ago
The inventory system employing accounting records that continuously disclose the amount of inventory is calle
Salsk061 [2.6K]
It's called perpetual. Perpetual inventory method updates inventory on a regular basis, as opposed to a periodic system, which updates at the end of a period. 
4 0
2 years ago
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