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olchik [2.2K]
3 years ago
14

Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590​ Variable cost p

er unit $190​ Fixed expenses for the month $1,200,000​ Currently selling 4000 unitsManagement is discussing increasing the price to $625 to cover an increase in fixed expenses of $89,000. Management believes they might lose 2% of sales per month. How many units per month would the company have to sell to maintain its current level of operating income?
Business
1 answer:
Fofino [41]3 years ago
5 0

Answer:

The company will need to sale 3,883 units to maintain its current operating income of 400,000

Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}

<u>Where:</u>

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

Current income: contribution x units sold - fixed cost

                             (590-190) x 4,000 - 1,200,000 = 400,000

(1,200,000 + 89,000 + 400,000) / 435 = 3,882.75862 = 3,883 units

The company will need to sale 3,883 units to maintain its current operating income of 400,000

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Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located close
Bess [88]

Answer:

E. transportation

Explanation:

The wholesaler is one of the middle-men in the channel of distribution that stands between the producer and the retailer in bulk breaking, he buys in bulk from the producers and sell to the retailer.

One of the functions of the wholesaler in the distribution value chain is the transportation of goods from manufacturer's warehouse to his warehouse at his own cost, thereby bringing the products closer to the consumers.

 

4 0
3 years ago
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota, Dan Dority, the company’s geologi
boyakko [2]

Answer:

NPV is $28.5 million

Payback is 4.31 years

IRR is 13.25%

MIRR is 12.51%

Explanation:

The NPV,payback period,Internal rate of return and modified internal rate of return were computed in the attached spreadsheet.

Payback period=the year of the first positive cumulative cash flow+the year cumulative cash flow/the next year cash flow

the year of first positive cumulative flow is year 4

the cumulative cash flow for year 4 is $66 m

the next year cash flow is(year 5) is $210

payback=4.31

Download xlsx
4 0
3 years ago
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs
ruslelena [56]

Answer:

See answers below

Explanation:

a. Direct materials & supplies  $40,000 = $40,000 × 110%

= $44,000 × 20,000/25,000

= $35,200

Employee costs = $2,900,000 × 105%

= $3,045,000 × 20,000/25,000

= $2,346,000

Variable overhead = $600,000 × 100%

= $600,000 × 20,000/25000

= $480,000

Fixed overhead = $700,000 × 105%

= $735,000

b. Total costs per unit year 2 =

$3,596,000 / 20,000

= $179.81

6 0
3 years ago
Statutes prohibit police officers from demanding money for investigating and apprehending criminals and prohibit firefighters fr
irakobra [83]

Answer:

The citizen, however, does not have to pay because the police officer has a pre existing duty.

Explanation:

"Preexisting duty rule is a common-law rule of contract. It says that the rule that performance of an act by which a party is already contractually bound to perform does not constitute valid consideration for a new promise. In other words, a party's offer of a performance already required under an existing contract is an insufficient consideration for modification of the contract."

Then, the citizen doesn't have to pay because the police officer has an existing contract, and it's considered an insufficient consideration for modification of that contract.

Reference: US Legal, Inc, 2019. “Preexisting Duty Rule Law and Legal Definition.” Preexisting Duty Rule Law and Legal Definition | USLegal, Inc., 2019

3 0
3 years ago
despite recent pressure from stockholders to increase profits Global oil or Global petroleum organization has
KIM [24]

despite recent pressure from stockholders to increase profits Global oil or Global petroleum organization has---- True .

Reason :

Acting socially responsible means deliberate actions by the management to protect and promote the interests of society. The concept of corporate social responsibility encourages enterprises to make decisions that do not maximize profits only but also benefit other members of society, such as consumers, employees, and the community.

The management of Global oil is acting in the best interest of consumers by not increasing prices to maximize profits. By following the laws of the country, the management is proving that there are not interested in not profits only, but they are responsible citizens.

Stockholder named as shareholder :

A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation.

Learn more about global petroleum organization :

brainly.com/question/25886960

#SPJ4

4 0
2 years ago
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