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
lukranit [14]
3 years ago
7

BruceCo is planning on selling backpacks for $100 each. The company can buy the backpacks for $30.00 and have them customized fo

r $20.00 apiece. There is a one-time set up charge of $1,000 for customization. In order for the project to go forward, the company needs to show a $10,000 profit. How many backpacks will BruceCo have to sell in order for this project to be acceptable?
Business
1 answer:
Evgen [1.6K]3 years ago
4 0

Answer: BruceCo would have to sell 220 backpacks

Explanation: The projection of a $10,000 profit can be calculated properly by the equation;

Revenue - Cost = Profit

There is a one-time set up charge of 1000 and this is a fixed cost (as it does not change regardless of how many units they eventually sell). Also they would be spending $30 to buy each unit and still spend $20 to customize each. So each unit would cost $50 to acquire. If they plan on selling each unit at the rate of $100, then the total revenue would be 100 times X (where X is the number of units sold). Therefore the profit can be better projected by the equation;

Revenue - Cost = Profit

100X - (50X + 1000) = 10000

100X -50X - 1000 = 10000

50X = 10000 + 1000

50X = 11000

Divide both sides of the equation by 50

X = 220

Therefore, BruceCo must sell 220 units (at least) in order to meet a $10,000 profit projection

You might be interested in
In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects r
Iteru [2.4K]

Answer:  Please see answers in explanation column

Explanation:

Accounts title and explanation            Debit          Credit

Sales returns and allowances       $121,200      

Sales refund payable                                               $121,200

Calculation

Expected Sales returns and allowances = sales x expected percentage

= 2,020,000 x 6%=   $121,200

Accounts title and explanation            Debit              Credit

Inventory returns estimated               $72,600

Cost of goods sold                                                     $72,600

Calculation

expected Cost of goods sold =  Cost of goods soldx expected percentage

= 1,210,000 x6%=$72,600

7 0
3 years ago
If a company does not intend to expand globally, but exports some products without customizing for international markets, it sho
ra1l [238]

Answer:

yes

Explanation:

5 0
3 years ago
One criticism against "supply-side" cuts in marginal tax rates is that they fail to:
Virty [35]

<span>One criticism against the ‘supply-slide’ cuts in the marginal tax rates is that they fail to increase the aggregate supply in a more rapid way, in which are the goods and services in total that are available in the market and that they fail to increase it more than of the aggregate demand which is the goods and services’ final demand.</span>

4 0
3 years ago
Complete the following:
Gekata [30.6K]
I believe its owners , but hopefully i helped
3 0
3 years ago
Multiple Choice
pickupchik [31]

Answer:

inflation

Explanation:

7 0
3 years ago
Other questions:
  • Marquis Company uses a weighted-average perpetual inventory system.
    15·1 answer
  • An employee gets injured at work when he is stung by a bee, and follows the correct procedures for reporting a work injury to hi
    5·2 answers
  • Martha and Lew are married taxpayers with $400 of foreign tax withholding from dividends in a mutual fund. They have enough fore
    10·1 answer
  • Reginald's credit card statement states that his balance is $550. What does the term balance mean?
    14·2 answers
  • What is the area of a triangle base 20ft and the hight of 14ft​
    5·1 answer
  • QUESTION (2)<br>What is supply chain Management (Explain in details )?​
    9·1 answer
  • how does our ear know where a sound is coming from? And don't use go.ogle cause i didn't understand what is written there.​
    10·2 answers
  • 23
    7·1 answer
  • A(n) _________ is the added value or favorable outcome derived from features of a product or service a seller offers.
    15·1 answer
  • When money loses some of its value over time it is caused by:.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!