Answer and Explanation:
The computation is shown below:
a.
Contribution per unit
= Selling price per unit - Variable costs per unit
= $300 - $200
= $100 per unit
Now
Break even point (units)
= Fixed costs ÷ Contribution margin per unit
= $14,000,000 ÷ $100
= 140,000 units
And,
b)
Sales units required for a target profit of $1,400,000
So,
= (Fixed costs + Target profits) ÷ Contribution margin per unit
= ($14,000,000 + $1,400,000) ÷ $100
= 154,000 units
<span>The main problem at Bond's Gym is excess demand. This means that negative incentives are the best way to go. Positive incentives would only increase demand at the gym, making the problem worse. however, negative incentives would create a positive result for the owner, as he would make more money and expand his gym, allowing him to meet more consumer demands.</span>
Answer:
$764,400
Explanation:
Given that,
Net income under variable costing = $772,200
Beginning inventories = 7,800 units
Ending inventories = 5,200 units
Fixed overhead per unit = $3
Net income under absorption costing:
= Net income under variable costing - [(Beginning inventories - Ending inventories) × Fixed overhead per unit]
= $772,200 - [(7,800 - 5,200) × $3]
= $772,200 - $7,800
= $764,400
In this item, we calculate first for the price of each can of coffee by dividing the cost by the number of cans of coffee.
Price per can = cost / total number of cans of coffee
price per can = ($2.40) / 4 = $0.6/can
To compute for the price of the 1/4 can, multiply the price by can by 1/4.
price of 1/4 can of coffee = (1/4 can)($0.6/can)
price of 1/4 can of coffee= $0.15
Therefore, the 1/4 can of coffee will cost only $0.15.
Answer:
$10,425
Explanation:
The computation of total annual costs of renting is shown below:-
Total annual costs of renting = Annual cost of rent + Annual insurance cost + Interest lost
= ($860 × 12) + $84 + ($700 × 3%)
= $10,320 + $84 + $21
= $10,425
Therefore computing the total annual costs of renting we simply applied the above formula.
