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Verdich [7]
3 years ago
14

Sweet Dreams sells 15,000 pillows per year for $25 per unit. Variable cost per unit is $14. Sweet Dreams wants to improve custom

er satisfaction by using higher quality direct materials which will increase the variable cost per unit to $19. Fixed costs per year total $90,000. If sales increase by 5,000 units per year, what price will Sweet Dreams have to charge to earn the same profit it is earning now ($75,000 per year)
Business
1 answer:
Radda [10]3 years ago
4 0

Answer:  The answer is $27.25

Explanation:

Let x be the price Sweet dreams will charge to earn the profit of $75,000

New sales units = 20,000

New variable cost = $19

We know, Sales - Variable cost - Fixed cost = Profit

Now applying the equation,

 20,000x - (20,000*19) - 90,000 = $75000

 20,000x = $75,000 + 380,000 + 90,000

therefore, x = $27.25

So, Sweet Dreams will charge $27.25 to earn the same profit it is earning now i.e. $75000 per year.

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Question 2
laila [671]

Answer:

A

Explanation:

Calculate the payback period and net present value for each project assuming a 10 % discount rate

7 0
1 year ago
Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay
zzz [600]

Answer:

b. If the employer accepts Turner's counteroffer, Turner will recognize as gross income $55,000 per month [($480,000 + $180,000)/12].

Explanation:

Given that

Turner annual salary = $600,000

Counteroffer to received a monthly salary = $40,000 or $480,000 annually

And, $180,000 bonus in 5 years at the age of 65

So the benefit he will be getting would be after accepting the counter offer is

= ($480,000 + $180,000) ÷ 12 months

= $660,000  ÷ 12 months

= $55,000

6 0
3 years ago
Those who are working are defined as_____ (one word) and those who are not working but actively seeking work are defined as____
Nat2105 [25]

Those who're running are described as hired and people who aren't running however actively in search of paintings are described as unemployed.

The required details for Unemployment in given paragraph

Unemployment, in keeping with the OECD now no longer being in paid employment or self-employment however presently to be had for paintings all through the reference period. Unemployment is measured through the unemployment rate, that's the range of those who are unemployed as a percent of the hard work force (the overall range of humans hired introduced to the ones unemployed). Unemployment and the fame of the financial system may be stimulated through a rustic thru, for example, financial policy. Furthermore, the financial authority of a rustic, along with the relevant bank, can have an impact on the supply and price for cash thru its financial policy. In addition to theories of unemployment, some categorizations of unemployment are used for extra precisely modelling the consequences of unemployment within side the financial system. Some of the principle styles of unemployment include structural unemployment, frictional unemployment, cyclical unemployment, involuntary unemployment and classical unemployment.

Structural unemployment specializes in foundational troubles within side the financial system and inefficiencies inherent in hard work markets, which include a mismatch among the deliver and call for of people with important talent sets. Structural arguments emphasize reasons and answers associated to disruptive technologies and globalization.

To know about Unemployment click here

brainly.com/question/22741851

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8 0
1 year ago
Art's Market barrows $25,000 for three years at 8 percent. Payments are quarterly. Which of these inputs correctly computes the
Ratling [72]

Answer: A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT

Explanation:

A is the correct option because,

N = 12

The period is 3 years but the payments are quaterly so the actual period is;

= 3 years * 4

= 12 quarters/ periods.

I = 8/4

The interest rate is 8% but this is stated as a Yearly value which needs to be adjusted to a quarterly value by dividing it by 4.

PV = 25,000

The Present Value of the loan is $25,000 because this is the amount that Art's Market was given in the present.

When all of this is inputted into the calculator, the answer will be; PMT =  $2,363.99.

5 0
3 years ago
The Beach Shack Company produced 5,500 cakes that require 3 standard pounds per unit at $3. 00 standard price per pound. The com
prohojiy [21]

Answer:

Explanation:

Standard pounds per cake = 3 pounds

Standard unit price = $3

Standard pounds 5500 cakes = 16,500 pounds

Actual pounds per 5500 cakes = 16,650

Variance = (16,650 - 16,500)=150

Cost of actual materials used = actual materials * standard price

=16,650*3 =49,950

Cost of work in progress = Standard materials * standard price = 16,500*3= 49.500

Direct material quantity variance = Quantity variance * 3

150*3 = 450

Journal entry

Debit work in progress = 49,500

Debit material quantity variance = 450

Credit Material = 49,950

4 0
3 years ago
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