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
LenKa [72]
3 years ago
15

Designer Dollhouses manufactures dollhouse kits that are meant to be assembled by customers. Each kit sells for $60 and has $12

in fixed production costs and $10 in variable production costs. Rather tha selling these kits, the firm is thinking about selling the dollhouses fully assembled for $95 each. The variable costs for assembling one dollhouse are expected to be $14. Given these figures, which of the following statements is accurate? A Designer should sell dollhouse kits rather than assembled dollhouses because its net income per unit would be $8 higher. B Designer should sell assembled dollhouses rather than dollhouse kits because its net income per unit would be $21 higher. Designer should sell assembled dollhouses rather than dollhouse kits because its net income per unit would be $43 higher. Designer should sell dollhouse kits rather than assembled dollhouses because its net income per unit would be $14 higher.
Business
1 answer:
xeze [42]3 years ago
3 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Designer Dollhouses manufactures dollhouse kits that are meant to be assembled by customers. Each kit sells for $60 and has $12 in fixed production costs and $10 in variable production costs. Rather tha selling these kits, the firm is thinking about selling the dollhouses fully assembled for $95 each. The variable costs for assembling one dollhouse are expected to be $14.

Contribution margin Kits:

CM= selling price - unitary variable costs

CM= 60 - 12= 48

CM assembled:

CM= 95 - 12 - 14= 69

Effect in Net income= 69 - 48= 21

You might be interested in
American expansionism after the 1890s:
lisabon 2012 [21]

Answer:

a. was largely driven by the desire for expanded overseas trade

Explanation:

5 0
3 years ago
Read 2 more answers
A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what ki
Marianna [84]

Answer:

Keep-or-drop decision

Explanation:

Keep-or-drop decision is taken when a manager is in a dilemma whether to continue a product line or segment or shut it down. The manager needs to analyse income statement related to the product line to understand the major issue with product line. If costs are more than revenue, then the product line needs to be shut down. If the reasons for incurring losses can be addressed and that revenue from the product line is more, then it is not dropped.

Therefore, manager takes a keep-or-drop decision.

7 0
3 years ago
Outdoor Expo provides guided fishing tours. The company charges $300 per person but offers a 20% discount to parties of four or
Simora [160]

Answer:

May 2  No entry is required as the transaction is yet to happen

May 7  DR Accounts Receivable                                       $1,200

                 CR Tour Revenue                                                           $1,200

May 9  DR No entry required

May 15  DR Sales Allowance (1,200 * 30%)                        $360

                    CR Accounts Receivable                                             $360

May 20  DR Cash                                                             $789.60

              DR Sales Discount                                              $50.40

                    CR Accounts Receivable                                            $840

Working

Accounts Receivable = 1,200 - 360 sales allowance = $840

Sales Discount = 840 * 6% discount = $50.40

Cash = 840 - 50.40 = $789.60

b. Net Revenues

=  Revenue - Sales allowance - Sales discount

= 1,200 - 360 - 50.40

= $789,60

c. Partial Income Statement

Tour Revenues                                                         $1,200

Less:

Sales Allowance                                   $360

Sales Discount                                   <u> $50.60 </u>    

                                                                             <u>  ($410.60)</u>

Net Tour Revenue                                                 $789.40

8 0
3 years ago
If a bond's yield to maturity is less than its coupon rate, the bond will sell at a _____, and increases in market interest rate
KiRa [710]

If a bond's yield to maturity is less than its coupon rate, the bond will sell at a premium, and increases in market interest rates will decrease this premium.

If the bond's coupon rate is lower than YTM, the bond will be sold at a discounted price. If the bond's coupon rate is higher than its YTM, the bond is sold at a premium. If the bond's coupon equals YTM, the bond is sold at face value.

If the coupon is higher than the yield, investors should expect the bond's capital value to fall over the remaining term. Therefore, the price of the bond must be higher than its face value. If the bond's coupon rate is lower than its lifetime, the bond's price increases over its remaining lifetime.

If the interest rate falls below the coupon, the bond can be sold at a premium above face value. Interest rates on bonds vary according to prevailing interest rates and perceived risks of the issuer. Suppose he has a 10-year bond for $5,000 with a 5% coupon.

Learn more about bonds here brainly.com/question/25965295

#SPJ4

7 0
1 year ago
Under the WTO agreement:_________
Paraphin [41]

Answer:

Under the WTO agreement:_________

 

b. a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures.

Explanation:

The WTO (World Trade Organization) Agreement is an international legal framework covering about 63 agreements affecting trade in goods, services, intellectual property, standards, investment, and other issues with some impacts on world trade.  The legal framework is a system of rules that supports open, fair, and undistorted trade competition, allowing tariffs and some protections.

7 0
3 years ago
Other questions:
  • H. Cochran Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,3
    13·2 answers
  • Knowledge Check 01 Product A Product B Selling price per unit$20 $15 Variable cost per unit 12 9 Contribution margin per unit$8
    8·1 answer
  • Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $9.00 is binding. In t
    14·1 answer
  • Discuss the role that resources, organizational communications, and training play in the support and successful implementation o
    7·1 answer
  • One of the most important features of the franchise contract is the provision related to
    9·1 answer
  • Jeff Co. sells its giant cheese wheels for $36 per wheel. The contribution margin ratio is 75% and total fixed costs are $270,00
    12·1 answer
  • If the money supply is​ $500 and nominal income is​ $3,000, the velocity of money is A. ​1/60. B. ​1/6. C. 6. D. 60.
    11·1 answer
  • Shell Enterprise is a soft toy manufacturer. It sells its toys to ToySpot, a company that sells a wide range of toys to the publ
    9·1 answer
  • Describe 'the market place' ​
    14·1 answer
  • An economy produces only apples and oranges. The base year is 2012, and the table gives the quantities produced and the prices
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!