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Evgesh-ka [11]
3 years ago
7

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies sug

gest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $70 per unit, and variable expenses are $40 per unit. Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price) is 15,000 units. Required: 1. What is the present yearly net operating income or loss?
Business
1 answer:
wlad13 [49]3 years ago
8 0

Answer:

The present yearly net operating income or loss is  - $90,000

Explanation:

The computation of present yearly net operating income or loss is shown below:

Net income / Net loss = Sales - Variable cost - Fixed cost

The sales - variable cost is equal to contribution

Than, Contribution - fixed cost = net income

where,

Sales = Present Sales volume × Selling price

         = 15,000 × $70

         = $1,050,000

Variable cost = Present volume × Variable cost per unit

                     = 15,000 × $40

                     = $600,000

And, fixed cost = $540,000

So, net income / loss = $1,050,000 - $600,000 - $540,000

                                   = - $90,000

Hence, the amount shows negative which means the company has suffered a loss of $90,000

Thus, the present yearly net operating loss is  - $90,000

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The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory,Camay, Lava, Saf
Jet001 [13]

Answer: (D) Product line

Explanation:

 The product line is basically refers to the group of the product in which the similar company or organization selling their products and brands.

In the product line concept, the companies are basically expanding their business by selling their existing products according to the customer requirement and the usability. It is also known as marketing and the product strategy for increase their productivity.

Therefore, Option (D) is correct.    

5 0
3 years ago
In the United States alone, $16 billion of products and services are traded every year without any money changing hands in a pra
Harlamova29_29 [7]

In the United States alone, $16 billion of products and services are traded every year without any money changing hands in a practice referred to as Barter transactions account .

  • A barter exchange account is handled as an asset account and the revenue from bartering is treated as income in a typical journal entry.
  • In the aforementioned scenario, barter income would be credited with $100 and the barter exchange account would be debited with $100.
  • A barter exchange is a group of people or businesses that have decided to swap goods or services without taking payment in cash.
  • Disadvantages are that bartering frequently requires much time and hassle and that goods are often not readily divisible, meaning that swapped goods have to be basically equal in value if a trade is to occur.

What are barter accounts?

  • A barter exchange operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made.
  • Compared to one-to-one bartering, concerns over unequal exchanges are reduced in a barter exchange.

Learn more about barter accounts brainly.com/question/23967562

#SPJ4

4 0
2 years ago
On May 15, Monique Company purchased $40,000 of merchandise from the Terrell Company, with terms of 1/10, n/30. On May 17, Moniq
svetlana [45]

Answer:

May-15. Dr Merchandise inventory  40000

           Cr  Accounts payable         40000

   ( To record purchase of inventory)

May-17. Dr Merchandise inventory    310

                             Cash                             310

      (To record payment of freight of shipment)

May-20. Dr Accounts payable  800

                         Cr Merchandise inventory    800

      ( To record purchase return of inventory)

May-24. Dr Accounts payable  (40000-800)   39200

                         Cr Cash                                                  39200

      ( To record payment in full of inventory purchase)      

3 0
3 years ago
A company sells two products. Product A sells for $10.00 per unit and Product B sells for $8.00 per unit. Variable costs are $3.
Yuri [45]

Answer:

$6.55

Explanation:

A company sells two products. Product A sells for $10.00 per unit and Product B sells for $8.00 per unit. Variable costs are $3.00 for Product A and $2.50 for Product B. If the sales mix is 70% Product A and 30% Product B, the weighted average contribution margin is _____.

Step 1

Calculate Contribution per product = Selling Price - Variable Costs

Contribution for A = 10 - 3 = 7

Contribution for B = 8 - 2.5 = 5.5

Step 2

Multiply the Contribution per product by its sales mix

A = 7 x 70% =  4.9

B = 5.5 x 30% = 1.65

Step 3

Add up the weighted contribution margins for each product

Therefore the the weighted average contribution margin for both product is (4.9 + 1.65) = $6.55

4 0
3 years ago
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, ag
daser333 [38]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream production kit at the beginning of the year for $152,000. The estimated useful life was four years, and the residual value was $8,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Year 1= [(152,000 - 8,000)/16,000]*5500= 49,500

Year 2= 9*3,800= 34,200

Year 3= 3,200*9= 28,800

Year 4= 9*3,500= 31,500

Total 144,000

4 0
3 years ago
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