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3 years ago

Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

1 answer:

5 0

That statement is true.
In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.
Since cost per unit is determined by total products/total cost, sales volume played a large role in determining per unit costs

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Business sofware programs make it possible to

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Answer:

increase productivity in office setting

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3 years ago

Hair Zone manufactures a brand of hair styling gel. It is considering adding a modified version of the product-a foam that provi

polet [3.4K]

Answer:

Should Hair Zone add the new product to its line? Why or why not?

Yes they should, since it would increase their total net income by $210,000.

Explanation:

Current hair gel New foam product

Unit selling price $2.00 $2.25

Unit variable costs $0.85 $1.25

expected sales for new foam product 1,000,000 units, but 600,000 units would replace sales from current hair gel

expected sales for current hair gel if new foam is introduced 900,000 units (1,500,000 if no new product is introduced)

Alternative 1 Alternative 2 Differential

no new foam new foam income

total sales revenue $3,000,000 $4,050,000 $1,050,000

total variable costs ($1,275,000) ($2,015,000) ($740,000)

additional fixed costs $0 ($100,000) ($100,000)

total $1,725,000 $1,935,000 $210,000

5 0

3 years ago

Pls help me!! i need help with an essay for business

vodomira [7]

Do u also want some sources?

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3 years ago

The inventory of Cullumber Company was destroyed by fire on March 1. From an examination of the accounting records, the followin

maria [59]

Answer:

a. Merchandise lost by fire value = $20,760

b. Merchandise lost by fire value = $25,770

Explanation:

Net sales = $51,000 - $1,100

= $49,900

Net purchase cost = $31,000 + 1,200 - $1,500

= $30,700

a. Gross profit = $49,900 × 40%

= $19,960

Cost of goods sold = $49,900 - $19,960

= $29,940

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $29,940 = $20,000 + $30,700 - ending inventory

Ending inventory = $20,760

Merchandise lost by fire value = $20,760

b. Gross profit = $49,900 × 30%

= $14,970

Cost of goods sold = $49,900 - $14,970

= $34,930

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $34,930 = $30,000 + $30,700 - ending inventory

ending inventory = $25,770

Merchandise lost by fire value = $25,770

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3 years ago

Master Hatter's demand for hats is 25,000 per year. The order cost is $425 and the carrying cost is $4.50 per unit. The cost pai

laiz [17]

Answer with its Explanation:

Part A. Economic order quantity Computation

Economic order quantity can be calculated by using the following formula:

EOQ = Squaroot of (2* D * S / H)

Here

Ordering cost per order is $425 which is S

Annual Holding cost per unit per year is $4.5 which is H

Annual Demand is 25000 Units

By putting values, we have:

EOQ = (2 * 25000 * $425 / $4.5) ^(1 / 2) = 2173 Hats

Part B.

Total Cost at EOQ = Purchasing Cost + Total Ordering cost + Holding Cost

By putting values, we have:

Total Cost = 25,000 Units * $25 per unit + ($25,000 / 2173 Hats) * $425 + (2173 Hats / 2) * $4.5 = $634,778 Annual Cost

Part C.

For ordering at-least 2000 units per order, the total cost would be:

Total Cost under 2000 order quantity = 25,000 * $25 per unit + (25000/2000) * $425 + (2000/2) * $4.5

Total Cost under 2000 order quantity = $634,813

By ordering at least 2000 hats will bring a loss of $35 ($634,778 - $634,813), hence Master Hatter must only order in EOQ.

6 0

3 years ago