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Readme [11.4K]
3 years ago
5

If the selling price is $22 per unit, what is the contribution margin per unit sold? (round your answer to 2 decimal places.)

Business
1 answer:
Rasek [7]3 years ago
7 0
The computation follows:

1. Solve first for the variable cost per unit.
Direct materials $ 6.00 

<span>Direct labor $ 3.50 
</span>
<span>Variable manufacturing overhead $ 1.50 
</span>
<span>Sales commissions $ 1.00 
</span>
<span>Variable administrative expense $ 0.50 
</span>
<span>= $12.50 variable cost per unit 

2. Then deduct the selling price to the variable cost per unit, to get the contribution margin.

</span><span>22 - 12.50 = $9.50 CM per unit</span>
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Explanation:

Over the past several decades, advances in technology, greatly reduced the cost of making computers which resulted in the decline of the equilibrium price of  computers and also resulted in increased equilibrium quantity. The reduction in the computer prices also caused an increase in the consumer surplus.

computer price down -> equilibrium price down

computer price down -> equilibrium quantity up

computer price down -> consumer surplus up

The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.

computer price down ->  producer surplus down

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2 years ago
Consider the market for running shoes. draw a​ firm's average total cost curve with no advertising. label it atc0. draw the​ fir
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I believe it’s b..... hope this helps pls tell me if I’m wrong! <3

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3 years ago
Assume that Maia spends all of her income on halvah (H) and pomegranates (P) and is purchasing the optimal consumption bundle. I
mamaluj [8]

Answer:

The correct answer is:

$4 (D.)

Explanation:

From the question, we are told that:

the price of halvah (MUH)= $12

the price of pomegranates (MUP)= ????

Next, we are also told that the optimal consumption ratio of MUH to MUP = 3

This means that the Mauginal Utility of halvah (H) to the marginal utility of pomegranates (P) = 3

MUH/MUP = 3

12/MUP = 3

MUP = \frac{12}{3} = 4

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5 0
2 years ago
All competitive advantages have:________1. a limited life. 2. unrestricted sustainability. 3. protections against imitability. 4
dimulka [17.4K]

Answer:

The answer is the ability to earn above average returns indefinitely

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To earn above the average returns are form of returns in excess of what an investor expects to earn from other investments with similar amount of risk. This gives an ability to manufactures to produce at the lowest cost, which is an advantage to organizations.

7 0
3 years ago
Read 2 more answers
After the amount due on a sale of $30,400, terms 2/10, n/eom, is received from a customer within the discount period, the seller
Elenna [48]

Answer:

a. The amount refund owed to the customer is : $29,792

b. To record the refund and the return of merchandise:

Dr Sales returned and Allowances     $30,400

Cr Sales Discounts                              $608

Cr Cash                                                $29,792

(to record the refund of $30,400 sales with sales discount of $608 made)

Dr Merchandise Inventory                    $13,060

Cr Cost of Merchandise sold               $13,060

(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory)

Explanation:

- Further explanation for sell discounts calculation:

As the terms is 2/10, total discount had been given as calculated below:

$30,400 x 2% = $608.

3 0
3 years ago
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