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Alona [7]
3 years ago
12

Linaweaver Inc. has $2.80 per unit in variable costs and $5.50 per unit in fixed costs and a production volume of 100,000 units

per year. If Linaweaver marks up total cost by 0.50, what sale price in dollars should be charged if 42,000 units are expected to be sold each year
Business
1 answer:
Elanso [62]3 years ago
8 0

Answer:

 =  $8.80

Explanation:

<em>Under the Mark-up pricing system, the price of a product is determined by adding a desired percentage of the the cost (called mark-up) to the full cost of the product.</em>

Selling price = <em>The full cost of the product  + mark -up</em>

<em>The full cost of a product = Variable cost + fixed cost</em>

Remember that fixed cost do not varying within activity range

Selling price = ($2.80 + $ 5.50) + 0.50   = $8.8

Sales price to be charged =$8.8

<em>Total sales value = $8.8× 42,000</em>

<em>                            =  $369,600.  (though this is not part of the requirement)</em>

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Which project type creates a competitive advantage that enables the organization to earn a greater than normal return on investm
aleksandr82 [10.1K]

Answer:

a breakthrough project

Explanation:

Having competitive advantage <em>implies</em> being in a  condition or circumstance that puts an organisation in a favorable business position.

Therefore, a Breakthrough Project would create a competitive advantage that enables the organization to earn a greater than normal return on investment than its competitors, because it is like a<em> disruptive innovation.</em>

4 0
3 years ago
Tax cuts increase consumer incentive to save. which determinant(s) of aggregate demand cause the change?
Sidana [21]

In the given problem above, what will most likely happen if the tax cuts increase consumer incentive to save is that the aggregate demand will likely change as it will increase in the given situation, mainly because of the tax cut in which it will consume or spend the money earned.

8 0
3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
insens350 [35]
The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
3 0
3 years ago
Read 2 more answers
If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 unit
Ksenya-84 [330]

Answer:

-0.33

Explanation:

The calculation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 80 units - 100 units

= -20 units

And, the average of quantity demanded would be

= (80 units + 100 units) ÷ 2

= 90 units

Change in price is

= P2 - P1

= $2 - $1

= 1

And, the average of the price is

= ($2 + $1) ÷ 2

= 1.5

So, after solving this, the price elasticity of demand is -0.33

7 0
3 years ago
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.50. It expects to grow at a constant rate of 2
mr Goodwill [35]

Answer:

The current price of Hubbard's common stock is <u>$25.50</u>.

Explanation:

This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:

P = D1/(r - g) ............................ (1)

Where,

P = Current stock price = ?

D1 = Next dividend =  D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53

r = required return = 8%, or 0.08

g = growth rate = 2%, or 0.02

Substituting the values into equation (1), we have:

P = $1.53 / (0.08 - 0.02) = $25.50

Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.

7 0
3 years ago
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