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Bezzdna [24]
3 years ago
15

Polar Industries makes refrigerators. Polars management wants to market refrigerators to students in dorm rooms and small apartm

ents by making a compact refrigerator. The competition, led by Walmart, prices small refrigerators at $76 each. The production manager at Polar Industries estimates that the small refrigerator could be produced for the following manufacturing costs.
Direct materials $24
Direct labor 10
Manufacturing overhead 8
Total $42

Polar's management wants to make an operating margin of 10 percent (operating margin equals revenues minus manufacturing costs).

Suppose Polar uses cost-plus pricing, setting the price to manufacturing costs plus 10 percent of manufacturing costs, What price should it charge for the refrigerator?
Business
1 answer:
mote1985 [20]3 years ago
6 0

Answer:

Selling price = $46.2

Explanation:

<em>Cost plus pricing determines the price of the product by adding a given percentage of the cost to the manufacturing cost to arrive at the price.</em>

<em>Selling Price = Manufacturing Cost + (mark-up(%)×  manufacturing cost)</em>

Selling price :

= 42 + (10%× 42)

= $46.2

Selling price  = $46.2

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2. The following table provides information about the production possibilities frontier of a Country.(4)
iren [92.7K]

Based on the PPF of the country, if the country were to produce an additional 20 computers at that level, the opportunity cost would be 40 kg of wheat.

If a technological advancement allows for computers to be produced more efficiently, the PPF would expand outwards as shown in the attachment.

<h3>What would be the opportunity cost?</h3>

At the point where this country can produce 10 computers, the amount of wheat it can produce is 400 kg wheat.

If it produces 20 more computers, it will move to the point where it can produce 30 computers and 360 kg of wheat. Opportunity cost would be:

= 400 - 360

= 40 kg wheat.

<h3>What happens due to a technological advancement?</h3>

When there is an improvement in technology, the production capacity of a nation increases. This leads to the production possibilities frontier expanding outward.

Find out more on the production possibilities frontier at brainly.com/question/26685094.

3 0
2 years ago
On August 1, Batson Company issued a 60-day note with a face amount of $58,800 to Jergens Company for merchandise inventory. (As
Trava [24]

Answer:

a. $58,800

b. $57,820

Explanation:

Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.

a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.

b. Discount value

= $58,800 × 10% × 60/360

= $980

Proceeds

= Face/par value of the note - Discount value of the note

= $58,800 - $980

= $57,820

5 0
3 years ago
What was the opening price of Coca-Cola on Jan 1, 1962?
agasfer [191]

Answer:

I'm not 100 %sure but but I think 49 cents

3 0
2 years ago
Read 2 more answers
A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly
Harman [31]

C. Product line extension.

7 0
3 years ago
HUD, Co. had a beginning retained earnings of $29,825. For the year, the company had net income of $6,540 and paid dividends of
marissa [1.9K]

Answer:

$38,265

Explanation:

Beg RE = $29,825

Plus Net Income = $6,540

Minus Dividends = ($2550)

Plus New Stock = $4450

Ending RE = $38,265

6 0
2 years ago
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