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dmitriy555 [2]
3 years ago
8

Variable Costing

Business
1 answer:
mart [117]3 years ago
4 0

Answer:

a. $197,600

b. $163,400

c. $108,600

Explanation:

a. Manufacturing margin = Sales - Variable cost of goods sold

= $380,000 - $182,000

= $197,600

b. Contribution margin = Manufacturing margin - Variable selling and administrative expenses

= $197,600 - $34,200

= $163,400

c. Income from operations = Contribution margin - Fixed manufacturing costs -  Fixed selling and administrative expenses

= $163,400 - $57,000 - $2,800

= $108,600

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Nicole thinks that her business, nicole's getaway spa (ngs), is doing really well and she is planning a large expansion. with su
lina2011 [118]
Pretty sure the answer would be that she will need to finance some of the cost, with her debt. Please correct me if I'm wrong though!
3 0
3 years ago
Oriole Company had $234,200 of net income in 2019 when the selling price per unit was $151, the variable costs per unit were $91
FinnZ [79.3K]

Answer:

A) 13,500 units

B) 14,630 units

C) $156 is the selling price.

Explanation:

A) Number of units sold = Total sales/selling price per unit

Given,

Operating profit (Net income) = $234,200

Selling price per unit = $151

Variable cost per unit = $91

Contribution margin per unit = $(151-91) = $60

With the help of contribution approach, we can find the total sales.

                                             Per Unit            Total Cost

Selling price                            $151

Less: Variable cost              <u>     91       </u>  

Contribution Margin(1)            $60                  $810,000

Less: Fixed cost                                         <u>      $575,800</u>

Net Income                                                      $234,200

Note: 1) Contribution Margin - Fixed cost = Net income

Contribution Margin = Net income + fixed cost

Contribution Margin = $234,200 + 575,800

Contribution Margin = $810,000

Total number of units = Contribution Margin/Contribution margin per unit

Total number of units sold = $810,000/$60

Total number of units sold = 13,500 units

B) We know,

Desired sales unit = \frac{Fixed cost + Target profit}{Selling price per unit - Variable cost per unit}

Given, as the selling price, variable cost and fixed cost remain same in 2020. Therefore,

Selling price per unit = $151

Variable cost per unit = $91

Fixed cost = $575,800

Targeted profit = $67,500 + 234,500 = $302,000

Therefore, desired sales unit = \frac{575,800 + 302,000}{151 - 91}

Desired sales unit = 14,630 units need to be sold in 2020.

C) If the company wants to sell 13,500 units but wants to achieve $(234,200+67,500) = $302,000 amount of profit, the company has to increase its selling price. Because the company cannot change the fixed cost.

Therefore,

Contribution Margin - Fixed cost = Net income

or, Contribution Margin = Net income + fixed cost

or, Contribution Margin = $302,000 + 575,800 = $877,800

Therefore, contribution margin per unit = \frac{877,800}{13,500}

Contribution margin per unit = $65

As the variable cost will not be changed, the selling price should be -

Selling price - variable expense per unit = Contribution margin per unit

Selling price = Contribution margin per unit + variable expense per unit

Selling price/unit = $65 + $91 = $156

3 0
3 years ago
In most cases, markets are considered more efficent and better off when monopolies are broken up. Why is it hard for governments
Alexus [3.1K]

Answer:

In simple words, it is hard for governments to break he monopolies as generally as these entities are generally protected by some kind of legal or social convention. A monopoly of an entity that has strategic importance for the nation could be harmful in long run. Also if an individual owns a monopoly due to some patent right etc. then breaking that up will be seen as social injustice.

6 0
3 years ago
Subway, the sandwich shop, is run by Jim, Tim and Kim. When a customer arrives, Jim spends 5 minutes taking order from the custo
Marizza181 [45]

Answer:

22 minutes minimum time

Explanation:

In the given scenario Subway sandwich shop has given its processes and time of each process.

We are to calculate the minimum time it will take to process a order. So we add all the times

Below is breakdown of the process time

Jim take orders 5 minutes

Tim prepares bread and Kim prepares filling for the order 7 - 10 minutes. We use 7 minutes since we are looking for minimum time.

Jim then assembles the bread 5 minutes

Time delivers order and takes payment 5 minutes

Total time = 5 + 7 + 5 + 5 = 22 minuites

6 0
3 years ago
What is a marketing strategy in which the focus is on small but profitable market segments?
Goryan [66]

Niche marketing strategy is a marketing strategy in which the focus is on small but profitable market segments.

Niche marketing is defined as the strategy of channelizing  all the marketing efforts towards one well-defined segment of the population. There is one important thing to understand that ‘niche’ does not exist, but  it is created by a smart marketing technique and identifying what the customer wants.

This can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. A niche market does not mean a small market, but it involves specific target audience with a specialized offering.

To know more about niche marketing here:

brainly.com/question/27940470

#SPJ4

3 0
1 year ago
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