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Scorpion4ik [409]
3 years ago
10

Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business products. The company is well

known for its attention to quality and innovation.
During the past 15 months, a new product has been under development that allows users improved access to e-mail and video images. Johnson and Gomez code named the product the Wireless Wizard and has been quietly designing two models: Basic and Enhanced. Development costs have amounted to $183,000 and $264,000, respectively. The total market demand for each model is expected to be 41,000 units, and management anticipates being able to obtain the following market shares: Basic, 20 percent; Enhanced, 15 percent. Forecasted data follow.

Basic Enhanced
Projected Selling Price $350.00 $450.00
Per-unit productions costs:
Direct material 43.00 69.00
Direct labor 23.00 31.00
Variable overhead 37.00 49.00
Marketing and advertising (fixed but avoidable) 196,000 305,000
Sales commissions* 15% 10%
*Computed on the basis of sales dollars.

Since the start of development work on the Wireless Wizard, advances in technology have altered the market somewhat, and management now believes that the company can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $35,000 for an in-depth market study. Sales salaries (excluding commission) will be $88,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which product is introduced.

Compute the unit contribution margin for both models.
Business
1 answer:
IceJOKER [234]3 years ago
3 0

Answer:

$158 and $200

Explanation:

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Life insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real e
andriy [413]

Answer:

The answers are:

  1. automobile insurers
  2. life insurance companies
  3. a life insurance policy
  4. longer
  5. longer-term

Explanation:

When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.

4 0
2 years ago
Is “AAMZON” a PRODUCT BASED or SERVICE BASED company
Vladimir79 [104]

Amazon is both. They sell products and services.

7 0
3 years ago
Read 2 more answers
Suppose Garnett and Kennedy own a downtown apartment in tenancy by the entirety. If Garnett dies, what type of ownership does Ke
Bezzdna [24]

Answer:

Sole ownership

Explanation:

Sole Ownership is a term that describes a form of property ownership whereby the ownership or interest in a property is completely owned by a single person. Also, the sole ownership of property can be acquired in some other ways, such as transfer of ownership or statutes of intestate succession.

Hence, in this case, If Garnett dies, the type of ownership Kennedy now have is called SOLE OWNERSHIP

4 0
3 years ago
At the present time, Water and Power Company (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding
kicyunya [14]

Answer:

6.53%      

Explanation:

For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:

Given that,  

Present value = $1,050.76

Future value or Face value = $1,000  

PMT = 1,000 × 10% = $100

NPER = 5 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying this above formula

1. The pretax cost of debt is 8.70

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 8.70% × ( 1 - 0.25)

= 6.53%      

6 0
2 years ago
Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bond
Ivan

Answer:

The answer is: $18,289.50

Explanation:

The interest earned from the investment in Birmingham Bonds is not included in Mitch's gross income.

If Mitch earned $100,000, so he will fall under the fourth bracket for single filers.

He will have to pay $14,089.50 plus 24% of any income over $82,500.

taxes due = $14,089.50 + [($100,000 - $82,500) x 24%]

taxes due = $14,089.50 + $4,200 = $18,289.50

6 0
3 years ago
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