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laiz [17]
3 years ago
12

Sandusky Inc. has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside suppl

ier is interested in producing the item for Sandusky. If the item is produced outside, Sandusky could use the released production facilities to make another item that would generate $150,000 of net income. At what unit price would Sandusky accept the outside supplier's offer if Sandusky wanted to increase net income by $120,000?
Business
1 answer:
goldenfox [79]3 years ago
8 0

Answer:

$6.30

Explanation:

For computing the unit price, first we have to determine the difference in cost which is shown below:

= $150,000 - $120,000

= $30,000

Now the break even price would be

= Variable cost + cost difference

= $600,000 + $30,000

= $630,000

So, the unit price would be

= Break even price ÷ number of unit produced

= $630,000 ÷ 100,000 units

= $6.30

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Answer:

Consumer Involvement

Explanation:

Consumer Involvement refers to the level of importance a consumer places on a purchase. The consumer factors in the personal, social and economic significance of the product before going ahead to make the purchase. The levels of consumer involvement could be of three types, namely; low, medium and high involvement.  

A low involvement purchase is one in which the consumer does not give so much thought to before making the purchase. Example is household products like detergents. Medium Involvement purchase are those in which the consumer puts in some thought before acquisition. An example could be new clothes. High Involvement purchase require considerable thought and research before the purchase is made. An example could be a new car.

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3 years ago
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elixir [45]

Answer:

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Explanation:

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ROI could be calculated for any specific period of time, it could be week, months, years, etc

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∴ Return of investment in 1 week is $45000.

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3 years ago
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Usimov [2.4K]

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Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.

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It's how organized you are in a group and/or individual setting. 
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The answer is "<u>The disagreement between these economists is most likely due to differences in scientific judgments."</u>


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4 years ago
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