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solniwko [45]
3 years ago
8

In 2019, Vaughn sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $300 per unit, and fixed e

xpenses were $240000. The same selling price is expected for 2020. Vaughn’s variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Vaughn sell in 2020 to maintain the same income level as 2019?
Business
1 answer:
olga nikolaevna [1]3 years ago
3 0

Answer:

Vaughn must sell  1588 Units in 2020 to maintain the same income level as 2019

Explanation:

Selling price for 2020 = 500 per unit

Variable cost for 2020 = 300 x 10% + 300

                                       = 300 x 0.1 + 300

                                          = 30 + 300

                                            = 330 per unit

Fixed cost for 2020 = 240000-10000

                                  = 230000

Required unit = (Fixed cost+Net income)/Contribution margin per unit

                     = (230000+40000) / (500-330)

                     = 270000 / 170

                     = 1588.24

Required unit = 1588 Units

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The controlling is one of the main function in the management as it ensure all the activities performed accurately and also helps in planning all the activities in an organization. It basically helps in meet the desirable goals of the company by setting a standard performance.

 Therefore, Option (A) is correct answer.

 

8 0
3 years ago
What three major federal taxes bring in most revenue ?
kumpel [21]

Income taxes, payroll taxes, and corporate income taxes.

Income taxes = individual employees pay out of their earnings

Payroll Taxes = social security tax, medicare, and unemployment tax. These are paid partially by the employees and partially by the employers

Corporate income taxes = paid by businesses as a percentage of their profits

6 0
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Which of these would Congress look to do during a recession, as it pertains to fiscal policy?
jeyben [28]

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4 0
2 years ago
Your analyst team has received a request for system development that focuses on moving the current system into a new operating e
LenaWriter [7]

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<h3>What is Information System Management? </h3>

The Information system of Management refers to the management of the data, facts, figures or information of the system in the computer by the organizations.

According to the above scenario, The system development team is focusing on the adopting the operating environment system which is adopted by the Information system managers

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8 0
2 years ago
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Differential cost of Alternative B over Alternative A=$61,600

Explanation:

Differential Cost:

It is the difference in costs if there are more than one alternatives and one alternative is chosen while rejecting the other alternatives.

In order to calculate the differential cost of Alternative B over Alternative A, including all of the relevant costs we first calculate the total cost of both alternatives and then tae the difference.

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Total Of Alternative B=Material Cost+Processing Cost+Equipment Rental+occupancy costs.

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Differential cost of Alternative B over Alternative A=Total Of Alternative B-Total Of Alternative A

Differential cost of Alternative B over Alternative A=$154,100-$92,500

Differential cost of Alternative B over Alternative A=$61,600

5 0
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