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
galben [10]
3 years ago
11

ProCart manufactures shopping carts which it sells directly to supermarkets at a unit price of $36. Salesmen complain that they

are overworked, so management is considering hiring another salesman at a salary of $28,000, with an additional $12,000 budgeted for auto and travel expenses. If the unit variable cost percentage is 40%, how many units will the salesman need to sell before he contributes anything to manufacturing overhead and profit?
Business
1 answer:
Anna71 [15]3 years ago
5 0

Answer:

salesman sell before contributes anything to manufacturing overhead and profit =  1852 units

Explanation:

given data

Sale price = $36

variable cost = 40%

budgeted auto and travel expenses = $12,000

salary = $28,000

to find out

how many units will the salesman sell before contributes anything to manufacturing overhead and profit

solution

we get here makes variable cost that is

makes variable cost = 40% of $36

makes variable cost = $14.40

so contribution margin per unit will be

contribution margin = 36 - 14.4

contribution margin = $ 21.60

and Fixed cost will be as

Fixed cost = salary +  budgeted auto and travel expenses

Fixed cost = 28000 + 12000

Fixed cost = $40000

and now  salesman sell before contributes anything to manufacturing overhead and profit will be as

salesman sell before contributes anything to manufacturing overhead and profit  = Fixed cost ÷ Contribution margin per unit    .......................1

salesman sell before contributes anything to manufacturing overhead and profit = \frac{40000}{21.6}

salesman sell before contributes anything to manufacturing overhead and profit =  1852 units

You might be interested in
Why are the real income levels of Americans affected by rising prices?
Nat2105 [25]

"Real Wages" are wages that are adjusted for inflation and rising prices. As prices rise, people are able to buy less and less with their "nominal" (aka un-adjusted)  wages.

One example is gas for your car. If you make $1000 a month and gas goes up from $2.50 to $3, your un-adjusted wages stay the same (you still make $1000) but you can't buy as much of other things because your "real" wages have effectively gone down due to the price increase of gas.

4 0
3 years ago
Patty and tina were exposed to the mumps at school. neither patty nor tina has ever had the mumps before, but several years ago
Mumz [18]
I think would be most susceptible to have mumps is the Patty. <span>
</span><span>If we review the conditions: Tina had mumps vaccine; her mother had mumps before; baby sister was breastfed, which is not a protection for mumps, and Patty wasn't vaccinated but was the one who had contact with the person who has mumps. Patty was the most vulnerable.</span>

<span>The main reasons for mumps are through situations where saliva was able to be passed. </span><span> Such situations were sneezing, coughing, food sharing, plate use, kissing, and touching the nose or mouth of people with mumps.</span>
3 0
3 years ago
Read 2 more answers
What is the most direct cause of customer loyalty? High food safety standards Delicious food Friendly staff Good records
iogann1982 [59]

the answer is friendly staff

6 0
3 years ago
Read 2 more answers
Authority is decentralized, tasks and rules are flexible, and employees are given a lot of freedom at reliable copy products, wh
alexira [117]
The statement above is FALSE, Reliable Copy Product is not an example of a mechanistic organization. A mechanistic organization is a type of organization in which the authority is highly centralized, observation of formalized procedures and practices are highly prioritized and specialized functions are assigned.
3 0
3 years ago
Phil Graves Cemetery had 63,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
Whitepunk [10]

Answer:

Dividends for the year $63,000

Explanation:

Phil Graves Cemetery

Jan. 1 Shares issued and outstanding 63,000

June 1 2-for-1 stock split x 2

June 1 Shares issued and outstanding 126,000

Oct. 15 Cash dividend declared (per share)x $ .50

Dividends for the year $63,000

Therefore the amount that Graves should report as dividends is $63,000

7 0
3 years ago
Other questions:
  • An online buying club offers a membership for $115, for which you will receive a discount of 10 percent on all brand-name items
    14·1 answer
  • Senior management uses finance and accounting information systems to
    9·1 answer
  • Omicron Technologies has $60 million in excess cash and no debt. The firm expects to generate additional free cash flows of $48
    6·1 answer
  • All International Monetary Fund (IMF) loan packages come with conditions attached which limits Group of answer choices
    13·1 answer
  • The social and economic goals of __________ include private ownership of land and business.
    11·1 answer
  • Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2,000 units of in
    9·2 answers
  • Beauty salon opportunities and threats
    10·1 answer
  • 3. Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in invento
    13·1 answer
  • 3. Some new niche markets include eco-friendly travel, people who travel with pets and
    5·1 answer
  • If a policy change causes a pareto improvement, is the outcome necessarily pareto efficient? if a policy change causes a pareto
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!