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S_A_V [24]
4 years ago
12

Custom Shoes Co. has gathered the following information concerning one model of the shoe:

Business
1 answer:
Leno4ka [110]4 years ago
8 0

Answer:

b. $170

Explanation:

The computation of target selling price per pair of shoes is shown below:-

Return on investment =  $1,700,000 × 30%

= $510,000

Total variable cost = Variable manufacturing costs + Variable selling and administrative costs

= $40,000 + $20,000

= $60,000

Variable cost per unit = Total variable cost ÷ Planned production and sales

= $60,000 ÷ 5,000

= $12

Total Fixed cost = Fixed manufacturing costs + Fixed selling and administrative costs

= $160,000 + $120,000

= $280,000

Target profit = Total Contribution - Fixed cost

Total Contribution = Return on investment + Total Fixed cost

= $510,000 + $280,000

= $790,000

Contribution per unit = Total Contribution ÷Planned production and sales

= $790,000 ÷ 5000

= $158

So, Selling price per unit = Contribution per unit + Variable cost per unit

= $158 + $12

= $170

Therefore for computing the the selling price per unit we simply applied the above formula.

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Randy owns and rents a residential duplex that he purchased 17 years ago in the month of May. The purchase price was $250,000. D
Arturiano [62]

Answer: $5,681

Explanation:

As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.

Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.

The straight line rate for MACRS after the first year for this residential property is 3.636% per annum.

The asset didn't last the entire year so this needs to be accounted for.

Out of 12 months it lasted 7 months till July and 15 days in August which means it lasted 7.5/12 of the year.

Depreciation for the year is therefore,

= 250,000 * 3.636% * 7.5/12

= $5,681

8 0
4 years ago
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6
tatyana61 [14]

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

4 0
3 years ago
Tyler company has been approached by a new customer with an offer to purchase 6,000 units of its product kr200 at a price of $11
Lilit [14]
So tyler company gets new customer which purchase 20% of the production whcih company sales during business year with th 40% discount.
8 0
4 years ago
Persuasion is necessary when Group of answer choices your audience is skeptical about your idea. you anticipate that your audien
Elden [556K]

Answer:

your audience is skeptical about your idea.

Explanation:

Persuasion refers to an act of convincing someone to believe something or induce an individual to act in a desired manner.

Persuasive tone of writing is required when an author believes in the existence of doubt and lack of trust in the minds of the audience. In such cases, the writer will try and express in a polite tone, stating his views and making an allowance for counter arguments and conflicting viewpoints.

An act of persuasion is not required when the audience viewpoints are already in accord with those of the writer's, wherein the attitude of such audiences already matches the plan and the message is already attractive to the audience.

While persuading the audience, the writer should ensure the following:

  • show that he is knowledgeable, speaking the truth and is experienced.
  • be prepared and anticipate conflicting viewpoints and should counter them with reasonable and relevant facts and views.
  • include reliable data and statistics, valid reasons and relationships which substantiate and back his views.

8 0
4 years ago
A grocery store that uses local distributors is am example of what stage of globalization
Elena L [17]

Answer: Domestic stage

Explanation:

In the domestic stage of production, the entity is only involved in the domestic arena. The production facilities they have are limited to the country they are in and they only operate in the domestic market and at this point, the company is not trying to get into foreign markets.

The grocery store above uses only local distributors which means that they are only servicing the local market which therefore puts them at the domestic stage of globalization.

3 0
4 years ago
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