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
Makovka662 [10]
3 years ago
13

Morgan Technologies sells a single product at $30 per unit. The firm's most recent income statement revealed unit sales of 80,00

0, variable costs of $720,000, and fixed costs of $810,000. If a $6 drop in selling price will boost unit sales volume by 20%, the company will experience:
Business
1 answer:
Ymorist [56]3 years ago
6 0

Answer:

$240,000 drop in profits.

Explanation:

The company's variable cost per unit is:

VC = \frac{720,000}{80,000} =\$9/unit

Initially, with a sales volume of n = 80,000 units at $30 each, the company's profit was:

P_1=(price -VC)*n-FC\\P_1 = (\$30-\$9)*80,000-\$810,000\\P_1=\$870,000

After price drops to $24 per unit, and sales increase by 20%, the profit is:

P_2=(price -VC)*n_1*1.2-FC\\P_2 = (\$24-\$9)*80,000*1.2-\$810,000\\P_2=\$630,000

The change in profit is:

\Delta P = P_2-P_1\\\Delta P =\$870,000-\$630,000\\\Delta P =\$240,000

The company will experience a $240,000 drop in profits.

You might be interested in
Can estimate wind speed and predict precipitation by use of radio waves.
Leona [35]
The answer would be the Doppler Radar

The Doppler Radar used some sort of microwave signal to analyze the motions that happened by checking how much the motion altered its frequency. Doppler Radar is most commonly used in weather forecast or meteorology unit
6 0
4 years ago
A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could us
Sergio [31]

Answer:

For both 10,000 units and 20,000 units, the best alternative is Vendor B

Explanation:

Using the information provided in the question, we can write the following:

Annual Volume of 10,000 units

Internal Alternative 1

Variable costs = 170,000 (we multiply the variable cost per unit by total units)

Fixed costs = 20,000

Total costs = 370,000

Internal Alternative 2

Variable costs = 140,000

Fixed costs = 240,000

Total costs = 380,000

Vendor A

Total cost = 200,000 (we simply multiply the price by the quantity)

Vendor B

Total cost = 180,000

Vendor C

Total cost = 190,000

The cheapest option is Vendor B

Now for the 20,000 units:

Internal Alternative 1

Variable costs = 340,000

Fixed costs = 200,000

Total costs = 540,000

Internal Alternative 2

Variable costs = 280,000

Fixed costs = 240,000

Total costs = 520,000

Vendor A

Total cost = 400,000

Vendor B

Total cost = 360,000

Vendor C

Total cost = 380,000

Therefore, Vendor B is once again, the cheapest alternative.

5 0
3 years ago
Brand equity is the: Question 3 options:
natali 33 [55]

Answer:

d) association a consumer places in a brand with an organization.

Explanation:

Brand equity referes to the commercial value of a brand that a costomer perceives from the brand name. it is the value associated with the brand and not its product or services.

8 0
3 years ago
As ________blank, pioneers have the advantage of creating a new market or product category, establishing a commanding initial ma
inessss [21]

As first movers, pioneers have the advantage of creating a new market or product category, therefore establishing a commanding initial market share lead.

The major benefit of being a first mover om a new market or product category is the opportunity to build impactful brand awareness and customer loyalty. That way, first movers can easily dominate the market or product category and maximize early sales, gaining an upper hand against their rivals. They can also adjust their good or service quality as well as refine their marketing strategy with the additional time they get before rivals start to enter the market.

Learn more about first movers at brainly.com/question/28995105

#SPJ4

7 0
1 year ago
Which individual is responsible for ordering, preparing, and reviewing closing-related documents, such as the title policy and s
Ilia_Sergeevich [38]

The closing agent is responsible for ordering, preparing, and reviewing closing-related documents.

<h3>Who is a Closing agent?</h3>

This is a professional who deals in real estate transactions and acts a middle man between the buyer and the seller.

He ensures the transfer of the legal title is appropriately done by preparing and reviewing closing-related documents, such as the title policy and settlement statement.

Read more about Closing agent here brainly.com/question/20787805

#SPJ1

8 0
2 years ago
Other questions:
  • A stadium brings in $16.25 million per year. it pays football-related expenses of $13.5 million and stadium expenses of $2.7 mil
    14·1 answer
  • Which filter allows you to impart a stamping or raising effect in an image?
    12·1 answer
  • The feed that Luca exports from his point of sale system needs some cleanup before it will be accepted by Google Merchant Center
    15·1 answer
  • MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company base
    13·1 answer
  • Zisk Co. purchases raw materials on account Budgeted purchase amounts are April, $80,000, May, $110,000, and June, $120,000. Pay
    11·1 answer
  • Think about a financial decision you made regarding the purchase of a big-ticket item or investment within the last five years.
    8·1 answer
  • Some companies require multiple interviews as part of their hiring processes.<br> True<br> False
    5·1 answer
  • A bond issued by the U.S. Treasury with a maturity of 90 days is sold on the
    6·2 answers
  • Describe what happens on Pascual's trip to Cuba based on the cues provided. Questions NOTA CULTURAL La Habana Vieja, Cuba, is th
    6·1 answer
  • The determination of the productivity of the inputs utilised in the manufacturing process is a critical component of management
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!