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solmaris [256]
3 years ago
10

The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost a

nd revenue data for the F-27 fan are as follows: Annual sales 4,000 units Unit selling price $ 58 Unit variable costs: Production $ 34 Selling $ 4 Avoidable fixed costs per year: Production $20,000 Selling $30,000 Allocated common fixed costs per year $55,000 If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. At what selling price would the new product be just breaking even? Multiple Choice $52.25 per unit $50.50 per unit $55.75 per unit $49.00 per unit
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

$52.25 per unit

Explanation:

The computation of the selling price is shown below:

= (Unit production variable cost + unit selling variable cost) + {(Production fixed cost + selling fixed cost + Contribution margin) ÷ (annual sales units)}

= $34 + $4 + {($20,000+ $30,000 + $7,000) ÷ (4,000 units)}

= $38 + $14.25

= $52.25

We simply add the variable cost, contribution margin, and the fixed cost

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To overcome this problem when selling to less-affluent consumers in developing countries, many companies make simpler or smaller
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4 years ago
The ________ is responsible for monitoring the money supply and the general stability and safety of the u. s. banking system.
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8 0
2 years ago
Gabe Industries sells two​ products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of
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Answer:

The correct answer is B.

Explanation:

Giving the following information:

Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.

First, we need to calculate the weighted sales participation:

Basic= 3/4= 0.75

Deluxe= 1/4= 0.25

Now, we need to calculate the weighted average selling price and variable cost:

weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46

weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25

Now, we can calculate the break-even point in units:

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Break-even point= 1,323/ (46 - 25)= 63 units

4 0
3 years ago
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