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Sladkaya [172]
3 years ago
12

An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new

product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on selling the device at a wholesale price of $9, write and solve an inequality to determine how many must be sold for the company to make a profit. Show your work. B. The cost of making one device is 10% more than the company predicted. What is the new cost of making one device? How many devices must it now sell at the same wholesale price to make a profit? C. Suppose the company wants to start making a profit after selling the same number of devices you found in part A. What should the new wholesale price be? Explain how you found this price.
Business
1 answer:
Leni [432]3 years ago
3 0

Answer:

A) to calculate the break even point we can use the following:

break even point = fixed costs / contribution margin

break even point = 125,000 / (9 - 6.5) = 125,000 / 2.5 = 50,000 units

The company must sell over 50,000 units to make a profit

B) if the unit production costs increase 10%, the new unit cost will be $7.15, and the new break even point will be: 125,000 / (9 - 7.15) = 125,000 / 1.85 = 67,567.6 which we round up to 67,568 units.

Now the company must sell at least 67,568 units to make a profit

C) If the company wants to increase its product price to a level where the break even point is 50,000 units, then the new price should be $9.65.

The contribution margin must be $2.5, so if the production costs are $7.15, we just add $2.5 to get $9.65 per unit.

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Sales promotions that provide consumers an incentive to buy a product, such as a cents-off coupons or a discount, are widely use
Nady [450]

Answer:

it is challenging to track usage of the coupons

Explanation:

Coupons are defined as an instrument that is used to obtain a discount or rebate when making a purchase.

Stores usually give out coupons to customers as an incentive to by products.

However there will be challenge of tracking the coupons as well as the discount on each coupon.

Coupons are given at different discount rates at different times, so it is cumbersome to track a particular coupon out of the many issued when customer wants to redeem it

6 0
2 years ago
A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipmen
brilliants [131]

Answer:

The cost recorded will be $53,400

Explanation:

In this question, we are to give the value of the amount recorded as the cost of the new equipment.

By simply doing some additions, we will be okay.

mathematically, this would be

Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400

4 0
3 years ago
Since the politicians are unwilling to get rid of the rent controls, they offer you a list of suggestions to make housing more a
nika2105 [10]
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6 0
3 years ago
An initial time study was done on a process with the following results​ (in minutes). Based on the data obtained so​ far, assumi
kiruha [24]

Answer: 24.60 minutes (2dp)

Explanation:

The question is essentially asking that we find the Standard Time it takes to serve a customer.

To do this we would have to calculate the averages of the different elements and then use this to find the normal time which we can then use to find the Standard Time.

Element 1

= (3 + 4 + 4 + 3 + 3)/5

= 3.4

Element 2

= ( 9 + 8 + 10 + 11 + 10)/5

= 9.6

Element 3

= ( 7 + 8 + 6 + 7 + 8)/5

= 7.2

We then calculate the normal times by multiplying each of the individual means with their performance ratings.

That would be,

Element A

= 3.4 * 70%

= 2.38

Element B

= 9.6 * 110%

= 10.56

Element C

= 7.2 * 120%

= 8.64

We then add up the normal times to get the total normal time

= 2.38 + 10.56 + 8.64

= 21.58 minutes

Now we can solve for the standard time using this formula,

Standard time = Normal time (1+Allowance factor)

= 21.58 ( 1 + 0.14)

= 24.6012 minutes

= 24.60 minutes (2dp)

The time per unit customer served is 24.60 minutes.

If you need any clarification please do comment. Cheers.

6 0
3 years ago
Free Spirit Industries Inc.’s marketing sales director doesn’t think that the market for the firm’s goods is big enough to sell
RSB [31]

Answer:

In the attached the fixed costs is $12,000,000

selling price is $41.50

variable cost is $12.80

The price for the target EBIT of $15 million is $167.09

Explanation:

target units=fixed costs+target EBIT/selling price-variable cost

target units is 175,000

fixed costs of $12,000,000

target EBIT of $15,000,000

variable cost is $12.80

selling price is unknown,let assume is X

175,000=($12,000,000+$15,000,000)/X-12.80

175,000=27,000,000/X-12.80

175,000*(X-12.80)=27,000,000

X-12.80=27,000,000/175,000

X-12.80=154.29

X=154.29+12.80

X=$167.09

EBIT=Sales units*(selling price-variable cost)-fixed costs

Download xlsx
6 0
3 years ago
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