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const2013 [10]
3 years ago
6

Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.4

0 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,600 shirts to break-even. The after tax net income last year was $5,220. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $12. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. The selling price that would maintain the same contribution margin ratio as last year is:
Business
1 answer:
Darina [25.2K]3 years ago
5 0

Answer:

$11.23

Explanation:

Calculation for the selling price that would maintain the same contribution margin ratio as last year

Selling price per unit = $8.40

Variable cost per unit = $2.25

First step is to the Contribution margin per unit using this formula

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

Contribution margin per unit= $8.40-$2.25

Contribution margin per unit = $6.15

Second step is to find the Contribution margin ratio using this formula

Contribution margin ratio= Contribution margin / Selling price per unit

Contribution margin ratio= $6.15/$8.40

Contribution margin ratio= 0.73*100

Contribution margin ratio=73%

Third step is to calculate for the Increase in variable cost per unit For coming year

Variable cost per unit will increase by 1/3

Increase in variable cost per unit = 6.15 x 1/3

Increase in variable cost per unit= $2.05

Variable cost per unit = 6.15+2.05

Variable cost per unit = $8.2

Last step is to find the selling price per unit using this formula

Selling price per unit =Variable cost per unit /Contribution margin ratio

Let plug in the formula

Selling price per unit = $8.2/0.73

Selling price per unit= $11.23

Therefore the selling price that would maintain the same contribution margin ratio as last year is $11.23

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Rzqust [24]

Answer:

a. By establishing cross-functional teams.

Explanation:

Cross functional teams are the ones in which there are people from different departments. In this people from different departments works on the same common goal as set by the management to be achieved by the organization.

As the company has been working in the centralized functional structure, that means all the major decisions were taken by the executive management personnel, and accordingly the company can even in the establishment of cross functional team, can make this possible.

As all together each department will be working on this, and at the same time the management can keep access to the controls.

3 0
3 years ago
in the absence of trade, the domestic price of soybeans is pn. if the world price of soybeans is pw, which of the following will
notka56 [123]

In the absence of trade, the domestic price of soybeans is pn. if the arena charge of soybeans is pw,b. the home charge of soybeans will rise, and home intake will fall.

The required details about domestic price is mentioned in below paragraph.

A domestic price degree represents the cutting-edge charge for a particular top or carrier in an economy. Government companies or country wide economists have a tendency to study diverse charge degrees for you to verify growing or falling prices, known as inflation and deflation in monetary terms, respectively.The term 'Domestic charge ' because it applies to the region of agriculture may be described as ' The charge at which a commodity trades inside a country, in assessment to the arena charge. For the ones commodities now no longer benefitting from a few shape of charge aid, the domestic price is decided with the aid of using deliver and demand. For commodities that acquire charge aid, the home charge is commonly set with the aid of using the mortgage price or a few similar aid degree that serves as a charge ground withinside the market running at the side of any import quota that can be in effect'.

To learn about domestic price visit here.

brainly.com/question/15584616

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6 0
1 year ago
Question 9 of 20
Lubov Fominskaja [6]
Umm what ;-; Imao I don’t get this
7 0
3 years ago
A two digit number is such that, the sum of its digit is 13. When the digits are interchanged, the original number is increased
LekaFEV [45]

Answer is 67.

As, 6+ 7

= 13

Also, when 67 is interchanged(76), the original no. is increased by 9.

7 0
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Rahm's credit card issuer calculates interest based on the outstanding
Llana [10]

Answer:

Adjusted balance method.

Explanation:

Adjusted balance method is defined a method of calculating financial interest based on the outstanding balance at the end of the last billing period after the payments after all necessary adjustment to the account has been made.

This method of interest calculating leads to a reduced finance charge with time as payments are being made to offset and reduce the balance on the card

3 0
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