1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tema [17]
3 years ago
7

Ramsey Corporation desires to earn target net income of $90,000. If the selling price per unit is $30, unit variable cost is $24

, and total fixed costs are $360,000, the number of units that the company must sell to earn its target net income is
a. 30,000.
b. 75,000.
c. 45,000.
d. 60,000.
Business
1 answer:
Stels [109]3 years ago
7 0

Answer:

b. 75,000 units

Explanation:

Fixed cost = $360,000

Target net income = $90,000

Selling price per unit = $30

Unit variable cost = $24

The computation of net income is shown below :-

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $30 - $24

= $6

So, the net income is

= ($360,000 + $90,000) ÷ ($6)

= ($450,000) ÷ ($6)

= 75,000 units

You might be interested in
Why should an entrepreneur do a feasibility study for starting a new venture
nexus9112 [7]

Answer:

Because a feasibility study assists entrepreneurs in understanding the market, the budget needed to launch a company, the liquidity factors of a business endeavor, and the return on investment in the initiative.

4 0
3 years ago
Vanessa grant is responsible for controlling expenses, but is not responsible for generating revenues. vanessa grant is a manage
rewona [7]

Vanessa Grant is responsible for controlling expenses, but is not responsible for generating revenues. Vanessa Grant is a manager of a(n):

Cost Center

What do you mean cost center?

A cost center is basically a department or function under an organization that do not directly increases profit but still costs the organization money to operate. Cost centers only provide to a company's profitability indirectly, unlike a profit center, which gives to profitability directly through its actions.

What is an example of a cost center?

Instances of cost centers contains  the accounting, human resources, IT, maintenance, and research & development departments. A cost center can be assumed  at a smaller level than a department. It could contain  a particular job position, machine, or assembly line.

Learn more about cost center:

brainly.com/question/1156860

#SPJ4

6 0
2 years ago
Victor realizes that he needs money to start a clothing company. if he decides to obtain his funds through equity financing, wha
lesya [120]
<span>If Victor accepts equity financing to start a clothing company, then he will have to give up partial ownership of his business to the investor or investors. That means he might have less say in how he runs the company.</span>
8 0
3 years ago
Which of the following is NOT a part of the listening process? A. Hearing
Mrrafil [7]

Answer:

D

Explanation:

3 0
3 years ago
Read 2 more answers
Where do deleted files go?
padilas [110]

Answer:

the correct answer is into the recycle bin

Explanation:

8 0
3 years ago
Other questions:
  • Stagflation is a combination of _________ unemployment and _________ inflation. select one:
    8·1 answer
  • The ecological footprint of the united states ______. shows that its population size is increasing slowly cannot be calculated i
    11·1 answer
  • Describe the meaning of venture opportunity screening.
    13·1 answer
  • Pair Co. sells one product and uses the last-in, first-out (LIFO) method to determine inventory cost. Information for the month
    14·1 answer
  • You’ve collected the following information from your favorite financial website.
    11·1 answer
  • Multinational forces interact with a variety of entities requiring unified actions. These entities include, but are not limited
    11·1 answer
  • Dave's firm had grown steadily and the products and systems had become more and more complicated. He had been a star representat
    9·1 answer
  • Discuss how Zipcar is more a lifestyle brand than a travel brand, and what this means. How does this impact the company's promot
    9·1 answer
  • Customer response time is: A. the time taken for value to be placed on a company's products by customers. B. the time taken for
    14·1 answer
  • Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash ad
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!