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3 years ago

Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs are as follows:

Business

1 answer:

devlian [24]3 years ago

8 0

Answer:

Margin of safety= 9,000 units

Explanation:

Giving the following information:

Each bottle sells for 3.60.

Variable unit costs are as follows:

Acrylic base- .75

Pigments- .38

Other ingredients- .35

Bottle, packing material- 1.15

Selling commission- .25

Fixed overhead costs are 12000 per year. Fixed selling and administrative costs are 6720 per year. Chromatics sold 35000 bottles last year.

First, we need to calculate the variable cost per unit and total fixed costs:

Unitary variable cost= 0.75 + 0.38 + 0.35 + 1.15 + 0.25= $2.88

Total fixed costs= fixed overhead + fixed selling and administrative= 12,000 + 6,720= 18,720

Now, we can calculate the break-even point in units:

Break-even point= fixed costs/ contribution margin

Break-even point= 18,720 / (3.6 - 2.88)= 26,000 units

Margin of safety ratio= (current sales level - break-even point)

Margin of safety ratio= 35,000 - 26,000= 9,000 units

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2 years ago

Condor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft req

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Answer:

11,303 Hrs

Explanation:

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3 years ago

5. How do coordination structures help organize and measure the whole community's capabilities?

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Coordination structures help organize and measure the whole community's capabilities by facilitating problem-solving.

It should be noted that coordination structures are vital in organizing the capabilities of the community and measuring them.

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Therefore, it's necessary for facilitating problem-solving.

In conclusion, the correct option is C.

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1 year ago

Your firm has just entered the polish market for bottled water. the major distributor is owned by a competitive producer of bott

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3 years ago

Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with man

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Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with many employees to attract demand deposits. Its interest expenses should be relatively low while its noninterest; expenses should be relatively high.

Option B

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An example of demand deposits is checking accounts. We require the depositor to withdraw money at any moment. The volume of transactions a creditor is allowed on these transactions is infinite (even though each transaction might be paid by a bank).

For buyers, deposits of demand are essential because sometimes they house funds for daily expenses. Under no scenario, depositors could not purchase items on-demand without informing the bank first.

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3 years ago