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MrMuchimi
3 years ago
10

Assume that you plan to open a soft ice-cream franchise in a resort community during the summer months. Fixed operating costs fo

r the three-month period are projected to be $9,800. Variable costs per serving include the cost of the ice cream and cone, $0.76, and a franchise fee payable to Austrian Ice, AG, $0.24. A market analysis prepared by Austrian Ice indicates that summer sales in the resort community should total 24,000 units. Determine the price you should charge for each ice cream cone to achieve a $25,000 profit for the three-month period. Round answer to two decimal places.
Business
1 answer:
ziro4ka [17]3 years ago
6 0

Answer:

$2.45

Explanation:

Fixed cost = $9,800

Variable cost:

= Units sold × (cost of the ice cream and cone + franchise fee)

= 24000 × ($0.76 + $0.24)

= $24,000

So,

total cost = Fixed cost +  Variable cost

               = $9,800 + $24,000

               = $33,800

Profit = $25,000

Now,

Sales = $58,800

Sales unit = 24,000

So,

Sales price per unit:

= $58,800 ÷ 24,000

= $2.45

Hence, the price one should charge for each ice cream cone to achieve a $25,000 profit for the three-month period is $2.45.

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Based on expected production of 6,000 units, a company reports the following costs: direct materials cost of $4 per unit, direct
Akimi4 [234]

Answer:

Net operating income= $32,000

Explanation:

The a<u>bsorption costing method</u> includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>First, we need to calculate the unitary fixed overhead and unitary total cost:</u>

Unitary fixed overhead= 60,000 / 6,000= $10

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 4 + 8 + 3 + 10

Unit product cost= $25

<u>Now, the net operating income:</u>

Net operating income= Sales - COGS - Total variable selling and administrative expenses

Net operating income= 4,000*40 - 25*4,000 - (2*4,000 + 20,000)

Net operating income= 160,000 - 100,000 - 28,000

Net operating income= $32,000

8 0
3 years ago
Isabel and Stuart open a money market account to begin saving for the
dangina [55]

Considering the situation described above, this is an example of a "<u>Long-Term investment strategy."</u>

<h3>What is a Long-Term Investment Strategy?</h3>

Long Term Investment Strategy is a type of investment decision in which the investor hopes to reap the rewards later, usually five years or more.

Given that Isabel and Stuart opened a money market account to begin saving for the college expenses of their newborn daughter, which may take an average of 16 years or more before they reap it, this is an example of a "<u>Long-Term Investment Strategy."</u>

Hence, in this case, it is concluded that the correct answer is "<u>Long-term investment strategy."</u>

Learn more about the Investment strategy here: brainly.com/question/25730859

5 0
2 years ago
Due to labor-market regulations that make it difficult for young workers to break into the labor force, Spain has the highest le
malfutka [58]

Answer: See explanation

Explanation:

a. offer a government subsidy for companies that hire long-term unemployed youth. = Reduce youth unemployment

In this case, since subsidy is given out to companies that employ long term unemployed youth, this will be a source of motivation to the employees which will in turn employ more youths and this reduces youth unemployment.

b. lower the age at which students can enter dedicated skills-training programs. = Reduce youth unemployment

This will also reduce youth unemployment as more students that is, more youths can enter can go into skills training programs which will lead to reduction of youth unemployment.

c. enable youth to leave high school at a younger age. = Increase youth unemployment.

When youths leave school at a younger age, this will mean that more youths would be looking for jobs and this will increase unemployment.

d. increase Social Security contributions by companies. = Increase youth unemployment

A rise in the social security contributions would lead to a rose in the youth unemployment.

e. increase the number of jobs that are covered by fixed-term contracts. = Increase youth unemployment

This will also bring about an increase in youth unemployment.

f. make it easier for companies to break fixed- term contracts to lay off workers. = Reduce youth unemployment

When companies find it easier to break fixed term contracts to lay off workers, this implies that the old workers in the organization would leave the organizations and more youths can be employed. This help in the reduction of youth unemployment.

g. encourage students to stay in the education system longer. = Reduce youth unemployment.

When students are encouraged to stay in the education system longer, thus helps to reduce youth unemployment.

4 0
3 years ago
Victoria, a restaurant general manager, carefully watches her restaurant costs by reusing some items that in the past were immed
nordsb [41]

Answer:

an efficient manager

Explanation:

An efficient manager is someone that uses his/her available resources ( like raw material, people and money ) wisely and inline with the organisation output.

5 0
3 years ago
Suppose a gardener produces both tomatoes and squash in his garden. If the opportunity cost of one bushel of squash is 2/5 bushe
Vlad [161]

The opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.

Explanation:

If economists lay claim to a source of money's "opportunity cost," they indicate the importance of its next best-rated alternative use.

For example, if you spend millions of dollars in a movie, you can't fully spend all the time reading a novel at home, and neither can you spend all the money on anything else.

When you can not get to a definite conclusion, you can calculate the cost of your opportunity with a very simple equation: divide the losses by whatever you can earn from choosing one position over another.

4 0
3 years ago
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