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ivolga24 [154]
2 years ago
14

Socks unlimited produces sport socks. the company has fixed expenses of $ 85 comma 000 and variable expenses of $ 1.20 per packa

ge. each package sells for $ 2.00. the number of packages socks unlimited needed to sell to earn an $ 22 comma 000 operating income was 133 comma 750 packages. if socks unlimited can decrease its variable costs to $ 1.00 per package by increasing its fixed costs to $ 100 comma 000​, how many packages will it have to sell to generate $ 22 comma 000 of operating​ income? is this more or less than​ before? why? begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. ( + ) / = sales in units
Business
1 answer:
aivan3 [116]2 years ago
6 0

Answer:

Contribution margin per unit = Sales price per unit – Variable cost per unit

$2 - $1.20=$0.80

The contribution margin per package is $ 0.80.

Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit $85,000 + $22,000/0.80 = 133,750 packages

Contribution margin per package = $2 - $1.00 = $1.00

Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit

$100,000 + $22,000/$1= 122,000 packages

The firm will have to sell 122,000 packages to generate $22,000 of operating income. Socks unlimited would have to sell 11,750 less packages of socks to earn $22,000 of operating income. The increase in fixed costs was completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, the firm will need to sell less units in order to achieve its target profit level.

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15,000 units in a process that are 70% complete are referred to as:
KengaRu [80]

Answer:

(c) 10,500 equivalent units of production

Explanation:

Equivalent units of production helps manufacturing companies determine the average completed or finished products. Additionally, since there are many items in continuous production, without calculation of equivalent units, it would be difficult to determine how much money was incurred in production costs.

Using the formula

The number of partially completed units (15,000) x percentage of completion (70%) = equivalent units of production (10, 500)

5 0
3 years ago
Financial assistance intended to aid students in reaching their educational goals is called _____.
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maxonik [38]

Answer:

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Explanation:

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6 0
3 years ago
On June 1, Lulu's Performing Arts School purchased merchandise with a list price of $5,500 from Monty's Inc. with credit terms 2
natali 33 [55]

Answer:

$4,410

Explanation:

Discount refers the amount that is deducted from the usal price of a good sold or service rendered.

From the question, the credit terms 2/10, n/30 implies 2% discount if the amount owed is paid within 10 days while no discount will be enjoyed if the amount owed is paid after 10 days but must be beyond 30 days.

Therefore, the amount owed by Lulu's if the store pays within the discount period, i.e. within 10 days, can be calculated as follows:

Discount = (Purchases - Merchandise returned) * 2% = ($5,500 - $1,000) * 2% = $90

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3 years ago
Who developed a three-step model for change that included unfreezing, movement, and refreezing?A) John KotterB) David McClelland
ohaa [14]

Answer:

The correct answer is letter "E": Kurt Lewin.

Explanation:

German psychologist and philosopher Kurt Lewin (1890-1947) developed a Change Model involving three steps: <em>Unfreezing, Changing</em>, and <em>Refreezing</em>. It represents a very simple model to understand the change process compared to the psychical matter state of the ice. The model starts by creating the idea in the organization that something must not continue to be the same (<em>unfreezing</em>), then moving towards the new desired behavior (<em>changing</em>) and, finally, solidifying that new behavior as the norm (<em>refreezing</em>).

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