Answer:
Results are below.
Explanation:
<u>First, we need to calculate the total unitary variable cost:</u>
Direct materials= 10
Manufacturing overhead= 5
Direct labor= 2
Selling and administrative= 5
Total unitary variable cost= $22
<u>Now, the contribution margin income statement:</u>
Sales= 5,000*38= 190,000
Total variable cost= 22*5,000= (110,000)
Total contribution margin= 80,000
Fixed Manufacturing overhead= (35,000)
Fixed Selling and administrative= (15,000)
Net operating income= 30,000
Answer:
Discounted payback period = 1.89 years
Explanation:
If Initial cost is $5,200
Year Cash flow Present value Present value Discounted
at 11% Cumulative cash flow
0 -5,200 1 -5,200 -5,200
1 2,800 0.9009 2,523 -2,677
2 3,700 0.811 3,003 326
3 5,100 0.73126 3,729 4,055
4 4,300 0.6587 2,833 6,887
Discounted payback period = 1 + (2,667/3003)
=1.89 years
Working
PV= (1+i)^-n
i= 11%, n= respective years 0,1,2,3,4
Answer and Explanation:
A. Toothpaste brand: Toothpaste is a commonly used, inexpensive, and very popular product. These decisions are governed mainly by the reference group such as family , friends or primary group with whom a student has regular face to face experiences. Hence the purchase decision is affected by a low degree of comparison community.
B. Buying a hybrid car: A hybrid car is sometimes described as expensive and luxury products. It's moreover a non-necessity commodity for a college student. These decisions are therefore usually affected by secondary community. And a high degree of control in the comparison community will only inspire a student to buy a car.
C. Buying cereal for breakfast: This is a simple requirement of a lifetime. Therefore, even without consulting any reference group a student can buy such product. Often such transactions are rules by family group control. So it needs a low degree of control.
D. Becoming a vegetarian: It takes a high degree of influence and motivation to become a vegetarian.
Thus the aspirational group influences a student. So they opt for vegetarianism to become part of such a community. Such decision taking involves a high degree of control.
E. Option of a computer tablet like the iPod: these products are a luxury commodity sold at regular prices. Typically refer to their families , friends, magazines before making a purchase student to get an idea about the output and price of these products. These goods are the weak product with a strong brand and a strong purchase is controlled by a strong reference community impact.
