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Rudik [331]
3 years ago
10

Exercise C The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four price

-quantity relationships: Demand 1 9,000 cups at $1.00 per cup 2 8,000 cups at $1.25 per cup 3 6,000 cups at $1.50 per cup 4 4,000 cups at $1.75 per cup The fixed costs of $3,000 per month are not affected by the different price-volume alternatives. Variable costs are $0.25 per cup. What price should Specialty Coffees set for espresso
Business
1 answer:
SIZIF [17.4K]3 years ago
6 0

Answer:

It should price the espresso at $1.25

Explanation:

\left[\begin{array}{ccccc}&D1&D2&D3&D4\\$Sales Price&1&1.25&1.5&1.75\\$Variable Cost&0.25&0.25&0.25&0.25\\$Margin&0.75&1&1.25&1.5\\$Quantity&9,000&8,000&6,000&4,000\\$Contribution&6,750&8,000&7500&6,000\\$Fixed Cost&3,000&3,000&3,000&3,000\\$Income&3,750&5,000&4,500&3,000\\\end{array}\right]

The best Income is generated at the price of 1.25 dollar

Therefore, this is the amount to Specialty Coffees set for espresso.

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Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one depa
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Answer:

The equivalent units of production for October are :

Raw Materials = 423,750

Conversion Costs = 418,500

Explanation:

<u>Calculation of Equivalent Units of Production</u>

1. Raw Materials

Ending Work In Process Inventory (25,000 × 71%)          17,750

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 423,750

2. Conversion Costs

Ending Work In Process Inventory (25,000 × 50%)        12,500

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 418,500

3 0
3 years ago
Andy, a salesperson for Fashion Seal Uniforms, tells the owner of a retirement home about the importance of caregivers having cl
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Answer:

Exploration

Explanation:

The exploration phase of the relationship development process occurs when both parties (seller and buyer) test the actions of the other party. Both parties will explore or try how the business relationship may develop, since they are not committed yet to start a relationship.

The owner accepted to purchase a small number of uniforms to try how good or bad they are. Andy is also testing if what the owner says is true about opening new centers and needing a lot of uniforms before making an offer for a larger lot.

7 0
3 years ago
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase
ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

= $45600 × 0.4

= $18240

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2 years ago
At the end of the month, you have only $10 left in your checking account. You deposit your $200 pay­check from your part-time wa
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Answer:

the money left in your account is $ 460 because you deducted $ 50

Explanation:

7 0
2 years ago
Which of the following statements is true?
OlgaM077 [116]

Answer:

These statements are true:

A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:

For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).

C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.

Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.

For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.

D) The Federal Reserve sets the Federal funds rate.

Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.

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