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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

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Troyanec [42]

Answer:

It increases the chance that the investment will lose all value.

Explanation:

If you go for a risky investment, it could increase the chance of it being a waste of time and money to sum it all up. But the answer you seek is, "It increases the chance that the investment will lose all value."

8 0
2 years ago
While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves
Scrat [10]

Answer:

Stocks and Bonds

Yes.  It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

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Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

4 0
3 years ago
Tom sells his father's watch for $100 to sue. he later finds out from his father that the watch was an expensive rolex. tom want
Daniel [21]

The court would rule in sue's favor because courts seldom inquire into the adequacy of consideration.

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8 0
3 years ago
Emily's trust fund has a value of 100,000 on January 1, 1997. On April 1, 1997, 10,000 is withdrawn from the fund, and immediate
mafiozo [28]

Answer:

(a) Dollar Weighted Rate of return = 0.27

(b) Simple interest-based rate of return = (115000- 100000)/ 100000 = 0.15

(c) Since, the data or investment portfolio of Emily is of one year, we can calculate the money weighted rate of return but time weighted rate of return couldn’t be calculated.

Explanation:

For (a) Dollar Weighted Rate of return = 0.27

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So, using calculator we found r= 0.27  

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4 0
3 years ago
Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5.
expeople1 [14]

Answer:

Air France should have recognized the Revenue in month of  APRIL.

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7 0
3 years ago
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