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
nekit [7.7K]
3 years ago
10

The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would

increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700?
Business
1 answer:
alex41 [277]3 years ago
6 0

Question:

The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.50 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,700?  

                                                               $

Sales (13,100 units × $20 per unit)  262,000

Variable expenses                            <u>131,000 </u>

Contribution margin                          131,000

Fixed expenses                                <u>(146,000)</u>

Net operating loss                          $(15,000)

Answer and its explanation:

The company has to find the number of units at which the target profit is $4700.

So the formula for finding the number of units required to make a profit of $4700 is as under:

Number of Units = (Fixed Cost + Target Profit) / Contribution per unit .................EQ1

Now first of all we have to find the contribution per unit, which can be found from the following formula:

Contribution per unit = Total contribution / Total units sold

Here we have total contribution of $131,000 and total units of 13,100 units.

By putting values in the equation, we have:

Contribution per unit =  $131,000 / 13,100 units = $10 per unit

Now we put this value in the Equation 1 to find the required number of units to be sold to achieve a profit of $4700.

Number of Units = ($146,000 + $4700) / $10 per unit = 15,070 units

So the required units that must be sold are 15,070 to achieve $4700 profit.

You might be interested in
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0
3 years ago
Why did thousands of russians citizens march on st. petersburg in 1905?
Elina [12.6K]
<span>they marched to demand better working conditions,more personal freedoms, and greater representation in government.</span>
3 0
3 years ago
Under what circumstances might a business plan include a funding request for working capital? Select one: a. It is just starting
cestrela7 [59]
A. It is just starting out.
8 0
3 years ago
(I) Because interest rates on Treasury bills are more volatile than rates on long-term securities, the return on short-term Trea
kherson [118]

Answer:

B) (I) is false, (II) true.

Explanation:

Even though short term rates (Treasury bills) are much more volatile than long term rates (Treasury bonds), it is normal that the rate of return on Treasury bills is lower than the rate of return on Treasury bonds. Some of the reasons why Treasury bills have such a low rate of return is that they are very liquid investments and they don't pay any periodic interest.

7 0
3 years ago
Oil refinery and sugar mill are classified under which industries?
kvasek [131]

Answer:

Secondary industries

Explanation:

They are secodary indstries because their raw materials.

3 0
3 years ago
Other questions:
  • Janice is a 48-year-old married woman who uses technology as a major source of information and shopping. she has a dvd drive on
    12·1 answer
  • Will Jones, Pharoah is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a
    8·1 answer
  • Now, suppose first main street bank loans out all of its new excess reserves to becky, who immediately uses the funds to write a
    8·1 answer
  • Sandhill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer
    10·1 answer
  • Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
    15·1 answer
  • Jana completed an informational interview with a preschool teacher in her area. She wants to write a thank-you letter. What shou
    15·1 answer
  • The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $3,200 Fee
    12·1 answer
  • Shantel has a checking account balance of $318.59. She wrote a check to United farmers Market for $52.17. What is Shantel's new
    15·1 answer
  • When Federal Reserve Banks purchase government from commercial banks, they increase the reserves in the banking system, which th
    13·1 answer
  • Who will be responsible for creating the disaster recovery plan and will likely be responsible for testing it and keeping up wit
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!