Which of the following is not true about commission-only compensation plans for sales persons? Sales personnel are only compensa
1 answer:
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Answer:
The ticket price that maximizes revenue is $18.10
Explanation:
Hi, first we need to construct the revenue equation in terms of the additional dollar charge (that would be X). That is:
So we expand it:
This is a parabola, and we need to find its vertex, which in our case that would be the maximum additional dollar charge in order to obtain the highest revenue possible, to find the vertex, we need to consider that:
And to find the X-coordenate we have to use the following equation.
In our case, A= -65; B= 1,247.5, so, all should look like this:
That means, we need to make 9.6 increments of $1 in order to obtain the max revenue possible, therefore, the price would be
Price = $8.50 + $1(9.6)= $8.50 + $9.6 =$18.10
Best of luck.
Answer:
Total Material Variance = $10,060 Unfavorable
Explanation:
Provided Information,
Standard budgeted unit of raw material = 1 yard
Standard price per unit = $91.00
Actual price per yard = $91.00
Actual units produced = 4,600
Actual yards of plastic used = 4,660 yards
Standard yards for actual production = 4,600 1 yard = 4,600
Total Material Variance = Standard Cost for actual output - Actual Cost
Standard Cost = 4,600 $90 = $414,000
Actual Cost = 4,660 $91 = $424,060
Total Material Variance = $414,000 - $424,060 = - $10,060
Since value is negative as actual cost is more than budgeted, the variance is unfavorable.
Final Answer
Total Material Variance = $10,060 Unfavorable