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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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2 years ago
Which statement best summarizes the law of demand ?
Verizon [17]

Answer:

The answer is D

Explanation:

6 0
3 years ago
Seth did menial work—mostly house cleaning—when he could find it. He had been homeless for a year, and since then simply did not
Advocard [28]

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Explanation:

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4 0
3 years ago
Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2
notsponge [240]

Answer:

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Explanation:

The following are given in the question:

Percentage of allowance for uncollectible accounts = 3%

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Therefore, we have:

Account receivable on 31 December 2018 * 3% = $750

Account receivable on 31 December 2018 = $750 / 3% = $25,000

Accounts receivable on 01 January 2018 = Account receivable on 31 December 2018 - Credit sales + Collections + Amount written off = $25,000 - $125,000 + $131,000 + $180 = $31,180

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8 0
3 years ago
Amortization is:Select one:A. The process of allocating to expense the cost of a plant asset to the accounting periods benefitin
Anvisha [2.4K]

Answer:

The correct answer is option B.

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