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Alenkasestr [34]
3 years ago
11

A company produces 1 comma 0001,000 packages of dog treats per month. The sales price is $ 6.00$6.00 per pack. Variable cost is

$ 1.50$1.50 per​ unit, and fixed costs are $ 1 comma 800$1,800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $ 1.50$1.50 to $ 1.70$1.70 per​ unit, and fixed costs will increase by 2020​%. At what sales price for the new product will the two alternatives​ (sell as is or process​ further) produce the same operating​ income? (Round your answer to the nearest​ cent.)
Business
1 answer:
snow_tiger [21]3 years ago
8 0

Answer:

$ 6.56

Explanation:

Sales price per unit = $6

Sales price for 1000 units:

= $6 × 1000 units

= $6,000

Contribution = Sales - Variable Cost

                     = $6,000 - ($1.50 per unit × 1,000 units)

                     = $6,000 - $1,500

                     = $4,500

Operating Cost = Contribution - Fixed cost

                           = $4,500 - $1,800

                           = $2,700

For further processing:

Variable Cost = $ 1.70 per unit

Variable cost for 1000 units:

= 1000 × 1.70

= $1,700

Fixed Cost = $1,800 + 20% × $1,800

                  = $1,800 + $360

                  = $2,160

Let the sale price per unit be "x"

Operating Income = Sales - Variable Cost - Fixed Cost

2,700 = (1000 units × x) - $1,700 - $2,160

2,700 = 1000x - $3,860

1000x = 6,560

x = $6.56

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Kisachek [45]

Answer:

$275,000

Explanation:

The computation of the value that should the land be recorded is shown below:

= Value at which rits accepted the counteroffer of the seller

= $275,000

Hence, the alue that should the land be recorded is $275,000

Basically it records the cost value as per the cost concept

The same should be considered

3 0
3 years ago
Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs
Kay [80]

Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue                                   39,500

variable cost of goods sold   (25,500)

variable selling expenses   <u>   (16,500) </u>

Contribution                              (2,500)

<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.

3 0
3 years ago
What is a factor that increases the volatility of demand in industrial markets? Multiple Choice Professional buyers in the indus
emmasim [6.3K]

Answer:

Derived demand accelerates changes in markets.

Explanation:

Derived demand can be defined as the way in which the demand for a good or service tend to result from the demand for the related good or service and this occured when their is the demand for either good that are tangible or intangible goods where a market exists for both related goods and services.

In another word Derived demand occured in a situation where the demand for one good or service happens because of the want for another good or service Example is increase in the need for Shoes material or equipment because of the increase in the need for Shoes

because the factor of production by a company is dependent on the demand by consumers for the product produced by that company which is why the transition to become demand-driven is slowly occurring in many industries.

Hence, The factor that increases the volatility of demand in industrial markets is "Derived demand accelerates changes in markets"

8 0
3 years ago
A card from a 52 card deck is lost. We then draw 2 cards from the 51 remaining cards. What is the probability they are both diam
Nonamiya [84]

Answer:

\frac{1}{17}

Explanation:

Let D be the event that the lost card is a diamond

and D' be the event that the lost card is a non diamond

Therefore,

P(D) = \frac{13}{52} = 0.25

P(D') = \frac{39}{52} = 0.75

Now,

Event that the cards picked up are both diamonds = A

Thus,

P( A | D) = \frac{12}{51 }\times\frac{11}{50}               [ As One Diamond Card is lost ]

And,

P(A | D') = \frac{13}{51}\times\frac{12}{50}                [ As One Non-Diamond card is lost ]

Therefore,

P(A) = P(D) × P(A | D) + P(D') × P( A | D')  

= 0.25 × \frac{12}{51 }\times\frac{11}{50}  + 0.75 ×  \frac{13}{51}\times\frac{12}{50}

= \frac{1}{17}

3 0
3 years ago
What is an example of a savings and loans bank?
tatyana61 [14]

Answer:

Savings and loan institutions–also referred to as S&Ls, thrift banks, savings banks, or savings institutions–provide many of the same services to customers as commercial banks, including deposits, loans, mortgages, checks, and debit cards.

Explanation:

hope this helps if it doesnt then im  sorry  

8 0
3 years ago
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