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Verdich [7]
2 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]2 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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Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to bui
faltersainse [42]

Answer:

Policies consistent with the goal of increasing productivity and growth in developing countries are:

1. Protecting property rights and enforcing contracts

2. Providing tax breaks and patents for firms that pursue research and development in health and sciences

Explanation:

To increase productivity and growth in developing countries, it is important that developing countries enhance the mechanisms for protecting property rights and enforcing contracts.  These are the bases for attracting more foreign direct investments.  The court system should be a system where justice is obtained and a system which can enforce the rights of individuals to own property.  Without this basic ingredient, foreign direct investments will be hard to attract.

4 0
3 years ago
Which of these is an example of a variable expense calculated in an organizational budget?
Ierofanga [76]
In an organizational budget, variable expenses are the total cost that depended on the amount of goods produced.
Example of variable expenses are:
- Raw material expenses
- Cost of plastic to make a handphone case
- Cost of carrots if the company is selling carrot pies
- etc
8 0
2 years ago
You are considering opening a new plant.
kotykmax [81]

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

6 0
2 years ago
On March 31, 2021, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed
fenix001 [56]

Answer:

$33,840

Explanation:

The computation of the depreciation per units or tons under the units-of-production method is shown below:

= (Original cost - residual value) ÷ (estimated tons)

= ($158,400 - $0) ÷ (22,000 tons)

= ($158,400) ÷ (22,000 tons)

= $7.20 per tons

Now for the year 2021, it would be

= Tons during 2021 × depreciation per tons

= 4,700 × $7.20 per tons

= $33,840

5 0
2 years ago
Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bond
omeli [17]

Answer: $18,079.5‬0

Explanation:

The tax is to be paid on the $100,000 alone as the $10,000 is municipal interest and is therefore tax exempt.

Taxes on the $100,000 in 2020;

= 14,605.50 + ( 24% of any amount above 85,525)

= 14,605.50 + ( 24% * ( 100,000 - 85,525))

= $18,079.5‬0

3 0
3 years ago
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