Answer: $756
Explanation:
Based on the information given in the question, the fee that should be charged to obtain a contribution margin of 18% will be:
Target fee = Variable cost/(1-Contribution Margin)
= $620/(1 - 18%)
= $620/(82%)
= $620/0.82
= $756
They should charge $756
Government activity affects the economy in four ways: The government produces goods and services, including roads and national defense. Less than half of federal spending is devoted to the production of goods and services
Answer:
net income increased by $1,537.50
Explanation:
Obviously, the original income statement is missing, so I looked for a similar question:
sales revenue $16,500
COGS <u>($9,300)</u>
Gross profit $7,200
Operating exp.:
- Administrative $950
- Depreciation $1,300
- Shipping $412.50 <u>($2,662.50)</u>
Net income $4,537.50
net income increased by $4,537.50 - $3,000 = $1,537.50
Answer:
Level of sales in dollars in order to generate a profit of $54,000 Fixed cost + Target profit/Contribution per unit $270,000 + $54,0000/0.75
= $432,000
Number of units to be sold
= Level of sales/Selling price
= $432,000/$36
= 12,000 units
The correct answer is A
Explanation:
In this case, we need to calculate level of sales in dollars, which is fixed cost plus target profit divided by contribution margin ratio. Then, we will calculate no of units to be sold, which is the level of sales divided by selling price.
