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
wolverine [178]
3 years ago
6

Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and

selling 10,000 cell phones are as follows:
Variable costs per unit: Fixed costs:
Direct materials $150 Factory overhead $350,000
Direct labor 25 Selling and administrative expenses 140,000
Factory overhead 40
Selling and administrative expenses 25
Total $240 per unit
Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000.
a. Determine the amount of desired profit from the production and sale of 10,000 cellular phones.
b. Determine the product cost and the cost amount per unit for the production of 10,000 cellular phones.
c. Determine the product cost markup percentage for cellular phones.
d. Determine the selling price of cellular phones.

Business
1 answer:
weqwewe [10]3 years ago
4 0

Answer:

A. $2,400,000

B. $36

C. $49

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the given problem

a. Ascertain the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones:

The total variable cost = $2,400,000

Variable cost per unit =$240

help_outline

fullscreen

b. Ascertain the variable cost mark-up percentage for cellular phones:

Compute the desired ROI per unit:

help_outline

fullscreen

Compute the Fixed co

An attached image in given for the calculations

You might be interested in
Use the word SMART goal in a sentence:​
strojnjashka [21]

Answer:

He was the smartest kid in the class because he knew how to solve the hardest math problem on the worksheet.

Explanation:

5 0
2 years ago
Forward Company makes and sells power tools. The budgeted sales are $480,000, the budgeted variable costs are $175,000, and the
den301095 [7]

Answer:

63.54% (Approx)

Explanation:

The computation of the budgeted percentage contribution margin ratio is shown below:-

For computing the contribution margin ratio firstly we need to calculate the contribution margin in dollars

Contribution margin = Sales - Variable cost

= ($480,000 - $175,000)

= $305,000

Contribution margin ratio = Contribution margin ÷ Sales

= ($305,000 ÷ $480,000)

= 63.54% (Approx)

5 0
3 years ago
If a specific subsidy​ (negative tax) of s is given to only one competitive​ firm, how should that firm change its output level
elena-s [515]

Answer:

The correct answer is option D.

Explanation:

The market price is P.

The marginal cost is given at MC.

The subsidy is equal to s.  

When the subsidy is provided to only a single firm, that firms marginal cost will decline. The firm can take advantage of decreased marginal cost by increasing the output level. The firm will produce the output where the price and marginal revenue is equal to marginal cost plus subsidy. At this point, the firm will be having maximum profit.

So, the firm will increase production until

P=MC+S

6 0
3 years ago
Which of the following would an economist classify as capital? Group of answer choices lawyer's computer. $50 bill. 100 shares o
snow_tiger [21]

Answer:

lawyer's computer.

Explanation:

For the economist a stock is capital that can earn income or good that person holds and can sold for a particular price.

In this case the lawyer's computer is a good that the lawyer owns and can be exchanged for money. Also the lawyer can use the computer to help treat court cases thereby earning income.

8 0
3 years ago
When you begin working, you will most likely be both a _____ and a _____ in a market economy.
laila [671]
Producer & Consumer should be the correct answer
6 0
3 years ago
Read 2 more answers
Other questions:
  • For a large sporting event the broadcasters sold 6565 ad slots for a total revenue of ​$145145 million. what was the mean price
    10·1 answer
  • Recently passed rules for defining academic progress and graduation rates for ncaa division i teams shift more responsibility fo
    9·1 answer
  • A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The f
    12·1 answer
  • A market researcher wants a large sample size for her survey and decides to stand in the food court of a mall during Christmas s
    15·1 answer
  • The demand for cable television is relatively elastic, because if the price gets too high, people will rent dvds or videos inste
    5·2 answers
  • Which of the following trends has been observed in the world population in terms of aging? A) As nations have advanced economica
    10·1 answer
  • The Auto Division of Big Department Store had a net operating income of $560,000, a net asset base of $4,000,000, and a required
    14·1 answer
  • Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,300, Work in Proc
    14·1 answer
  • Sheffield Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $
    8·1 answer
  • The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!