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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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Presented below are selected account balances for Tamarisk Co. as of December 31, 2020.
Svetradugi [14.3K]

Answer and Explanation:

The closing entries for the following accounts are presented below:

1. Sales Revenue A/c Dr $408,750

        To Income Summary $408,750

(Being revenue account closed)

2. Income summary A/c Dr $323,830

      To Cost of Goods Sold          $229,017

      To Sales Returns and Allowances $11,908

      To  Sales Discounts                        $15,070

      To Selling Expenses                       $16,133

      To Administrative Expenses          $37,525

      To Income Tax Expense                 $30,300

(Being expenses accounts are closed)

3. Income summary A/c Dr $84,930 ( $408,750 - $323,830)

       To Retained earning $84,930

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $17,873

         To Dividend A/c $17,873

(Being dividend account is closed)

7 0
3 years ago
On May 1, Year 1, Benz’s Sandwich Shop loaned $18,000 to Mark Henry for one year at 9 percent interest. Required a. What is Benz
ehidna [41]

Answer:

a) $1080

b)$19080

c) Loan given | -$18000

d)$540

e)$19620

f)loan | 18000

Interest received | $1620

g)  $1620

Explanation:

a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080

b) The total receivable at december 31,Year = 18000+1080 = $19080

c)  Year 1  :Statement of cash flow

Loan given | -$18000

d) Interest income Year 2 = $18000*9%*4/12 = $540

e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620

f) Cash flow from investing activities :

           loan | 18000

           Interest received | $1620

g)Total interest earned = 18000*9% = $1620

7 0
3 years ago
Given the following make-buy information, what would be the break-even point?Make Option Buy OptionFixed Costs $15000$1250Variab
grin007 [14]

Answer:

d. 2750 units

Explanation:

The break-even point occurs when the make option cost equals the buy option cost. The number of units 'x' needed in order for both options to yield the same costs is given by:

\$15,000+x*\$5=\$1,250+x*\$10\\\\x=\frac{\$15,000-\$1,250}{\$10-\$5}\\\\x=2,750\ units

The break-even point is 2,750 units

3 0
3 years ago
Market size and growth of the total U.S. beer market was estimated to be around $106 billion. The total economic impact of the b
RUDIKE [14]

Answer:false

Explanation:

The current gdp of us is estimated to about $21427.1 billion.

So if beer market is estimated to be $106 billion, the percentage is ($106/$21427.1)*100

= 0.004947*100

=0.4947%

0.497% is not up to 2%

6 0
3 years ago
Which of the following is an example of economic investment?
otez555 [7]

Answer:

Nike buys a new machine that increases shoe production.

Explanation:

An economic investment is when you pay for new additions to the capital stock or new replacements for capital stock that has worn out.

It refers to the net additions to the capital stock of the society which consists of goods and services that are used in the production of other goods and services.

Addition to capital stock means an increase in buildings, plants equipments and inventories over the amount of goods and services that existed.

3 0
3 years ago
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