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Brilliant_brown [7]
3 years ago
15

Chester has negotiated a new labor contract for the next round that will affect the cost for their product City. Labor costs wil

l go from $2.89 to $3.39 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half the new labor costs to their customers, how many units of product City would need to be sold next round to break even on the product
Business
1 answer:
Dmitriy789 [7]3 years ago
4 0

Answer:

Find attached complete question:

Option A 1452 units

Explanation:

The increase in labor cost=$3.39-$2.89=$0.50

Half of the increase would reflect as increase in price i.e$0.25

Current price is $16

new price is $16+$0.25=$16.25

contribution margin =selling price -variable cost

currently units sold=$30,875/$16= 1,930

Current contribution per unit=$11,401/1930=$5.91

new contribution per unit would reduce by $0.25 i.e $5.91-$0.25=$5.66

breakeven in units=period cost/contribution margin per unit

period cost is $8346

breakeven units=$8346/$5.66=1475 units

The closest option is A 1452 units,the difference could be due to rounding error

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A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $1
dolphi86 [110]

Answer:

Accounting rate of return is 10%

Explanation:

Given data

new machine = $48,000

sales = $16,000

time = 10 year

depreciation = $4,000 / year

factory overhead  = $8,000 + depreciation $4,000

net income = $2400

tax rate = 40%

to find out

accounting rate of return for the machine

solution

we know that

Accounting rate of return =  after tax net income / average investment

so here we know net income after tax = $2400

so we find investment first

Average investment = (Initial investment) / 2

Average investment = 48000 / 2 = $24000

so

Accounting rate of return =  after tax net income / average investment

Accounting rate of return =  2400 / 24000  = 0.1 = 10%

Accounting rate of return is 10%

6 0
4 years ago
1. which industry controlled the politics and economy of texas for most of the twentieth century?
Zigmanuir [339]

Oil production industry controlled the politics and economy of texas for most of the twentieth century.

In macroeconomics, an industry is a sector of the economy that produces a set of closely related goods, goods, or services. For example, we can mention the timber industry or the insurance industry.

Industries are subject to various types of risks arising from a volatile macroeconomic environment, technological change, politically induced tariffs, competitive threats and other reasons. These can adversely affect the profitability, sales, cash flow, growth and stock price of companies within each industry group.

Texas is a state in the south central United States. With 268,596 square miles and over 29.1 million residents as of 2020, the state is the second largest state in the United States by area and population.

Learn more about industry  brainly.com/question/26521390

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4 0
1 year ago
Kevin's boat was wrecked by hurricane Harvey (a federally declared natural disaster). Damage to the boat was estimated at $30,00
SVEN [57.7K]

Answer:

A) $4,900

Explanation:

Options are: <em>"A) $4,900 B) $5,000 C) $9,900 D) $14,900"</em>

<em></em>

Particulars                                       Amount

Original cost                                    $25,000

Damage                                           $30,000

Lower of the two is                        $25,000

Less: Insurance reimbursement    <u>$15,000</u>

Actual loss                                       $10,000

Less: Deduction                               $100

Less: 10% of AGI (10% of 50,000)   <u>$5,000 </u>

Final Deduction                               <u>$4,900</u>

Note: Flat $100 is deducted from this amount and also 10% of AGI, i.e 10% of $50,000 is deducted to finally arrive at the deduction.

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You are most concerned for the infant who has
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A i think, did btec childcare
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3 years ago
What inventory management procedure helps a firm to control inventory costs?.
lyudmila [28]

Just-in-time (JIT) inventory management is the procedure which helps a firm to control inventory costs.

<h3>What is Inventory?</h3>

These are the goods and services which a company hold for the purpose of resale or production.

Just-in-time (JIT) inventory management helps companies to control inventory costs because raw materials are supplied according to production schedule thereby reducing risks such as dead stock etc.

Read more about Inventory here brainly.com/question/24868116

6 0
3 years ago
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