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Olenka [21]
4 years ago
10

Warner Clothing is considering the Introduction of a new baseball cap for sales by local vendors. The company has collected the

following price and cost characteristics:
Sales price $18 per unit
Variable costs 2 per unit
Fixed costs 52,000 per month

Required:

a. What number must Warner sell per month to break even?

b. What number must Warner sell per month to make an operating profit of $40,000?
Business
1 answer:
bezimeni [28]4 years ago
4 0

Answer:

(a) 3,250 units

(b) 5,750 units

Explanation:

(a) BEP(units):

= fixed cost ÷ contribution margin per unit

= $52,000  ÷ ($18 - $2)

= 3,250 units

Therefore, the 3,250 units must Warner sell per month to break even.

(b) BEP(units):  

= (fixed cost + target profit) ÷ contribution margin per unit

= ($52,000 + $40,000) ÷ $16

= 5,750 units

Therefore, the units must Warner sell per month to make an operating profit of $40,000 is 5,750 units.

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Iteru [2.4K]

Answer:

the after tax borrowing cost is $12,000

Explanation:

The computation of the after tax borrowing cost is shown below;

= Annual interest - tax savings

= ($200,000 ×0.10)  - ($200,000 × 0.40)

= $20,000 - $8,000

= $12,000

hence, the after tax borrowing cost is $12,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
3 years ago
You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the
SpyIntel [72]

The question is incomplete. The complete question is :

You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.

Regular withdrawal    $ 2200

Interest rate                        2%

Frequency                   Monthly

Time                                20 years

Solution :

Given :

Monthly withdrawal = $ 2200

Interest rate = 2%

Frequency = monthly

Time = 20 years

        = 20 x 12 = 240 months

Formula used :

$w=\frac{[PZ^{r-1}(Z-1)]}{[Z^Y-1]}$         with Z = 1 + r

where, w = monthly withdrawal

P = principal amount

r = monthly interest rate

Y = Number of months

So, w = 2200

     r = 2% = 0.02

     Z = 1 + r

        = 1 + 0.02 = 1.02

Y = 240

Therefore,

$2200=\frac{P(1.02)^{240-1}(1.02-1)}{(1.02)^{240-1}(1.02-1)}$

$P=\frac{2200(115.888-1)}{113.6164(0.02)}$

   = 111,231829

   ≈ 111,232 (rounding off)

Thus, the account balance = $ 111,232

3 0
3 years ago
Read the sentence.The investors could not handle the ups and downs so they removed their funds from the fluctuating market.Using
kherson [118]

Answer:

There is no underlined word

7 1
3 years ago
Disney starts off its stars with Disney Channel shows, records them on the Disney-owned Hollywood Record label, plays the songs
aalyn [17]

Answer: Option (D)

Explanation:

Here, in this particular case we can state that the goal of these elements introduced by Disney is to evaluate the <em>top-of-mind awareness</em>. This concept is referred to as one of the most important element of consumer behavior and  marketing research. Disney uses this concept as a measure in order to known  how is the brand ranked in the minds of their customers.

3 0
3 years ago
Syntel is a software development company that originated in Michigan. The company once employed 6,500 workers in the U.S. In Aug
Free_Kalibri [48]

Answer:

outsourcing

Explanation:

Outsourcing is the agreement between two companies where one company hired the other company for producing some specialized services it could be service agencies, agency partners, etc in order to save the cost and the time for a company

Since in the question the company hired an indian company for taking charge in the production area so this represent that the company is engaged in outsourcing

6 0
3 years ago
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