1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna35 [415]
3 years ago
11

Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potentia

l loss on this product to the firm's initial investment in the project. The fixed costs are estimated at $32,000, the depreciation expense is $9,700, and the contribution margin per unit is $9.85. What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?
a. 3,220 units
b. 3,249 units
c. 2,815 units
d. 4,233 units
e. 4,658 units
Business
1 answer:
pochemuha3 years ago
6 0

Answer:

b. 3,249 units

Explanation:

Step 1. Given information.

Fix costs are 32.000

Depreciation expense 9.700

Contribution margin 9.85

Step 2. Formulas needed to solve the exercise.

Break even point = Fixed cost / contribution per unit

Step 3. Calculation.

Break even point= $32.000/$9.85= 3,248.73 rounded to 3,249

Step 4. Solution.

3.249 units is the minimum number of units to ensure its potential loss does not exceed the desired level

Option B is correct i.e. 3.249 units

You might be interested in
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw
liubo4ka [24]

Answer:

<u>Physical flow schedule</u>

Inputs

Beginning Work in Process                86,300

Add Units Started                              105,900

Total                                                    192,200

Outputs

Units Completed and Transferred   172,900

Units in Ending Work in Process       19,300

Total                                                    192,200

Explanation:

A physical flow schedule is simply a schedule of units introduced into the process and units outputs without expressing them to equivalent units.

Units Introduced must always be equal to units outputs in physicals terms.

<em>Units Completed and Transferred = Beginning Inventory + Units Started - Units in Ending Work in Process</em>

                                                        = 86,300 + 105,900 - 19,300

                                                        = 172,900

6 0
3 years ago
A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries
KIM [24]

Answer:

Adaptation of industrial products is the correct answer.

Explanation:

5 0
3 years ago
What is the LEAST LIKELY way a firm can finance operations?
drek231 [11]

Answer:

D

Explanation:

6 0
3 years ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
Name and describe various clauses that contracts between parties of different nations may choose to include in their agreements.
atroni [7]
<span>Negotiation: Early Neutral Case Evaluation
</span>
<span>Form of assisted negotiation. The parties select a neutral third party (generally an expert in the subject matter of the dispute) to evaluate their respective positions. The parties explain their positions to the case evaluator however they wish. The evaluator then assesses the strengths and weaknesses of the parties' positions, and this evaluation forms the basis for negotiating a settlement.
</span>
<span>Negotiation: Mini Trial
</span>
<span>Form of assisted negotiation.

A mini-trial is a private proceeding in which each party's attorney briefly argues the party's case before the other party. Typically, a neutral third party, who acts as an adviser and an expert in the area being disputed, is also present. If the parties fail to reach an agreement, the adviser renders an opinion as to how a court would likely decide the issue. The proceeding assists the parties in determining whether they should negotiate a settlement of the dispute or take it to court.
</span>
<span>Negotiation: Negotiation

</span><span>The simplest form of ADR is negotiation, a process in which the parties attempt to settle their dispute informally with or without attorneys to represent them. Attorneys frequently advise their clients to negotiate a settlement voluntarily before they proceed to trial. Parties may even try to negotiate a settlement during a trial or after the trial but before an appeal.


</span><span>Negotiation: Facilitation

</span>
<span>Form of assisted negotiation. Disputes may also be resolved in a friendly, non-adversarial manner through facilitation, in which a third party assists disputing parties in reconciling their differences. The facilitator helps to schedule negotiating sessions and carries offers back and forth between the parties when they refuse to face each other in direct negotiations. Technically, facilitators are not to recommend solutions. (In practice, however, they often do.) In contrast, a mediator is expected to propose solutions.</span>





8 0
3 years ago
Other questions:
  • List the four stages of ability development. Provide an example of a person developing a specific ability. What would each stage
    12·1 answer
  • Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derive
    8·1 answer
  • The 12/31/2018 balance sheet of Despot Inc. included the following: Common stock, 25 million shares at $20 par $ 500 million Pai
    6·1 answer
  • A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l
    13·1 answer
  • Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.6 Return on assets (ROA) 3% Re
    9·1 answer
  • Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $41,000 in premiums
    9·1 answer
  • Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is
    6·1 answer
  • The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory system.
    10·1 answer
  • You expect to receive $9,300 three years from today. You also expect to receive $13,100 five years from today. When you receive
    12·1 answer
  • What is an incentive?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!