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
An asset is purchased on January 1 for $44,700. It is expected to have a useful life of five years after which it will have an e
Black_prince [1.1K]

Answer:

Gain of $2,780

Explanation:

Calculation to determine what The company will record If it is sold for $32,000 exactly two years after it is purchased

First step is to calculate the Annual depreciation expense using this formula

Annual depreciation expense = (Cost − Residual value) × (1 ÷ Useful life)

Let plug in the formula

Annual depreciation expense = ($44,700 − $6,000) × (1 ÷ 5)

Annual depreciation expense =$38,700× (1 ÷ 5)

Annual depreciation expense =$ 7,740

Second step is to calculate the Accumulated depreciation using this formula

Accumulated depreciation = Year 1 depreciation expense + Year 2 depreciation expense

Let plug in the formula

Accumulated depreciation = $7,740 +$7,740

Accumulated depreciation = $15,480

Now let calculate the Gain (loss) on disposal

Using this formula

Gain (loss) on disposal = Proceeds from sale − (Cost − Accumulated Depreciation at time of sale)

Let plug in the formula

Gain (loss) on disposal = $32,000 − ($44,700 − $15,480)

Gain (loss) on disposal =$32,000-$29,220

Gain (loss) on disposal=$2,780

Therefore If it is sold for $32,000 exactly two years after it is purchased, the company will record a GAIN of $2,780

5 0
3 years ago
Happy employees what
lyudmila [28]
Employees be bonkers
7 0
3 years ago
If marginal cost is greater than average cost, then
Alex777 [14]
Answer (Marginal costs)

The answer is marginal costs because they are the highest in the margin.

Hope this helps have a nice day :)
8 0
2 years ago
"Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pr
STALIN [3.7K]

Answer:

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

Explanation:

According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,

price = $8.10

avg variable cost = $8.00

avg total cost = $8.25

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

8 0
3 years ago
Read 2 more answers
In your own words.<br><br> Why is it important to the business to motivate employees?..
Alexeev081 [22]

This is mainly opinionated, and since I'm young I may be wrong.

I say it's good to motivate them because then they will do a better job at their task and will make you seem like a good boss/person, especially if it's a decent pay that will keep them being able to live. With the motivation, they might even remember more things (Such as: If you work at a gas station, you remember to upsell people when a deal is going on, whereas unmotivated people forget or just don't want to do it and be lazy). It's the same effect of giving a kid a piece of candy for being good, doing chores, or getting a harder question right.

6 0
3 years ago
Other questions:
  • If Joey purchased a $100,000 house with a 20 percent down payment and borrowed the rest on a 30-year mortgage at 5% interest, wh
    5·1 answer
  • Goods lawfully bearing trademarks or using patents and copyrighted material but entering the American markets without authorizat
    9·1 answer
  • If McDonald's wanted to change its marketing strategy in response to the social trends, it might consider all of the following i
    5·1 answer
  • Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op
    6·1 answer
  • What are the two types of products that
    14·1 answer
  • When a company tries to get consumers curious about a product so they will want to gather more information about it, which step
    10·1 answer
  • Do you agree with the idea of NBA teams requiring fans to place deposits for season tickets for the following year? What about t
    12·1 answer
  • Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an a
    11·1 answer
  • What is meant by trigonometric ratios?​
    15·2 answers
  • Dressing a grinding wheel is defined as
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!