Answer:
regular sales price $270, total sales per month = 10 units
basic manufacturing costs:
variable cost per unit $120
fixed costs $3,000
if further processed, sales price $300
if further processed:
additional variable cost $20 per unit
additional fixed costs $400
At what sales price level would the new, improved radio begin to improve operating earnings?
sales price $270
revenue $2,700
variable costs -$1,200
fixed costs -$3,000
operating income -$1,500
sales price $300
revenue $3,000
variable costs -$1,400
fixed costs -$3,400
operating income -$1,800
Since relevant costs increase by $60 per unit (= $20 variable costs and $400/10 in fixed costs), then the sales price should increase more than $60 in order to lower the company's losses.
If the company wants to make a profit, then it should increase its sales price by more than $180 per unit. If the radio is processed further, in order to break even its sales price should be $480 per unit.
sales price $480
revenue $4,800
variable costs -$1,400
fixed costs -$3,400
operating income $0
Any sales price above $480 will result in an operating profit.
Penetration pricing, setting the price lower to attract attention.
Answer:
Kindly check explanation
Explanation:
Implementing plans where functional managers will be held responsible for cost overruns against their original estimate possess both advantages and disadvantages :
The advantages include:
1) Efficient use of Resources : A functional manager could be explained as the head or a person who has managerial authority over a department within a business organization. As such the functional manager will be able to monitor more effectively and take control of his unit. Holding them responsible for cost overruns will ensure that they are more cautious when it comes to resource and cost management as they will not want to be sanctioned.
11) ACCOUNTABILITY: It increases the sense of responsibility of the functional managers as they are being held fully responsible for the decisions made within their unit. This places a higher burden of showing sincerity on the managers.
The disadvantage associated with the plan is the possibility of producing low quality products resulting from the economical and cautious approach embarked upon in other to prevent cost overrun, materials used may be lesser quality than expected.
Answer:
A) Job simplification.
Explanation:
Job simplification makes it easy to complete the whole task by dividing it into small steps. Basically this can improve productivity and efficiency.
For instance: A whole task was done by a single employee and it took him a day to complete it, through Job simplification task would be divided into steps and those sub tasks would be assigned to different employee's with a deadline to complete it in 6 hours, much less than the formal employee took.
Answer:
<u>b. False</u>
<u>Explanation:</u>
<em>Remember, </em>the term social responsibility in this context refers to an individual doing what would benefit society first, over any gain he may derive if he does otherwise.
For example, we are told that there is "low paying wages in Belize," which means low worker welfare, thus, even if no labor laws were been broken in his country, Olivia has a social responsibility to pay fair prices for the necklaces and earrings.