Ask question

Ask question

All categories

mihalych1998 [28]

3 years ago

5

Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contr

ibution Margin per unit Lens A 25 % $ 38 Lens B 40 30 Lens C 35 43 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $187,000. 3. Determine how many units of each product must be sold to generate a profit of $73,000.

1 answer:

Anna11 [10]3 years ago

6 0

Answer:

A. $36.55

B. 5116 units

C. 7114 units

Explanation:

Requirement 1: Weighted average contribution margin per unit

Lens A = $38 x 25% = $9.5

Lens B = $30 x 40% = $12

Lens C = $43 x 35% = $15.05

Total Contribution margin per unit = $36.55

Requirement 2: Breakeven if fixed cost is $187,000

Break even point (units) = Fixed cost / Contribution per unit

Break even point (units) = 187,000/36.55

Break even point (units) = 5116 units

Lens A = 5116 x 25% = 1279 units

Lens B = 5116 x 40% = 2046 units

Lens C = 5116 x 35% = 1791 units

Requirement 3: How many units to be sold to generate $73,000 profit

Required units = Fixed cost - required profit / contribution per unit

Required units = ($187,000-$73,000)/$36.55

Required units = 7114 units

Lens A = 7114 x 25% = 1779 units

Lens B = 7114 x 40% = 2846 units

Lens C = 7114 x 35% = 2489 units

You might be interested in

A corporation's board of directors are - the sole owners of the corporation. - control the day-to-day activities of the corporat

Alexeev081 [22]

Answer:

- control the day-to-day activities of the corporation.

Explanation:

The board of directors are people chosen by the instiution, the owners of the institutions or the members of an institution to govern the institution and be responsible for the actions and directions that the organization takes, they could be owners, workers or externate associates to the institution and they control the day-to-day activities of the corporation.

3 0

3 years ago

Kelly Malone plans to have $51 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually, co

natita [175]

Answer:

$1,774.2

Explanation:

Compute the accumulated amount in the account on the date of last deposit'

Formula used to find out the future value ordinary annuity is:

Future value factor of ordinary annuity $(FVF-0A =_{n,i} ) = \frac{1-(1+i^)^ {n} }{i}$

1- oily Future value of ordinary annuity $(FV-OA) = R (FVF-0A_{n,i} )$

Where:

R = annual return (ordinary annuity)

$(FVF-0A_{n,i} )$ = future value of an ordinary annuity of I for n periods at i interest

Substituting the values:

Future value of ordinary annuity $(FV-OA) = R (FVF-0A_{n,i} )$

= $$50 (FVF-OA 12_{2.5X 12\frac{12}{12} } )$

= $$50 X 34.7849$

$51 X 34.7849\\=1,774$

6 0

3 years ago

Within economics, the theory of scarcity says that there are unlimited wants and a finite amount of resources. However, history

nika2105 [10]

Answer:

According to the economists, the resources are scarce and human wants are unlimited. So, it is difficult to satisfy each and every want of people. But according to the theory of abundance, we can overcome from this problem by division and specialization of labor. If there is a proper division of labor according to their specialization then this will increase the productivity and one can produce more goods with the same level of resources.

From this economic practice, we can overcome from the problem of scarce resources.

8 0

3 years ago

Which of the following organizations would be MOST likely to face a dynamic/complex environment? a. Oracle b. Whirlpool c. JCPen

alekssr [168]

Answer:

The correct answer is letter "A": Oracle.

Explanation:

Dynamic-complex organizations are those with diverse operations that are constantly changing because of the rapid development of their industry. Firms that fall into this category are mainly technological which products tend to have a short life cycle.

Thus, <em>American cloud-solutions company Oracle can be described as one having dynamic-complex processes.</em>

8 0

3 years ago

When an organization has a diverse set of employees that can provide insight and cultural sensitivity, this should improve the c

Alchen [17]

Answer:

Higher Creativity in Decision Making due to diversity and understanding of the environment in which it operates.

Explanation:

The reason is that the diversity brings access to great pool of hidden resources which we can utilize in a number of ways. People are observer and can play a vital role in the designing of strategic stance of the company. This strategy will influence company's financial position in future. So diversity helps in understanding of environment (environmental analysis) and informed decision making.

7 0

3 years ago