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meriva
3 years ago
15

Kim's Cupcakes has total fixed costs of $23,997. If the​ company's contribution margin is 20​%, the income tax rate is 15​% and

the selling price of a box of Cupcakes is $15​, how many boxes of Cupcakes would the company need to sell to produce a net income of $12,750​?
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

The company need to sell 12,999 boxes to produce a net income of $12,750.

Explanation:

Contribution per unit = Price * Contribution Margin ratio  

Contribution per unit =$15 * 0.20  

Contribution per unit =$3

Net Income before tax= $12,750 / (1 - 0.15) = $12,750 / 0.85

=$15,000

Boxes of Cupcakes to sell = [Fixed cost + Net income ] / Contribution per unit

= (23,997 + 15,000) / 3

= 38997 / $3

= 12,999 boxes

The company need to sell 12,999 boxes to produce a net income of $12,750.

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Answer: market development

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These strategies are usually used by the multinational corporations that are going to start their business in some new foreign country.

Hence from the above we can conclude that the correct option is B.

6 0
3 years ago
The present government has initiated the tax reforms such as relaxation of taxes on relaxing a property sales tax, and removal o
DochEvi [55]

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= the IS curve shifts right and the

economy moves along the LM curve

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= the IS curve shifts right and the

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5 0
3 years ago
Baxter company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring, and f
Nikitich [7]
<span>when the sets are completely finished, the cost should be transferred to: </span>W<span>IP inventory-Finishing
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Since the manufacter process is in finishing stage (coloring/packing), the appropriate account should be </span>WIP inventory-Finishing
3 0
3 years ago
Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2
viva [34]

Answer:

a. 863

Explanation:

Calculation for the order quantity

Order quantity = 75 x (10 + 2) + (1.64 x 8) - 50

Order quantity = (75 x 12) + (1.64 x 8) - 50

Order quantity= 900 + 13.12 - 50

Order quantity= 863.12

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Therefore the Order quantity will be 863

8 0
3 years ago
9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the
NNADVOKAT [17]

Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

<em>NPV = PV of cash inflow - PV of cash outflow </em>

Present value of cash inflow:

65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+  132,000 × (1.09375)^(-4)= 326882.7792

PV of annual maintenance cost :

=1,500 × (1- 1.09375^(-4))/0.09375

=4819.84773

NPV = 26882.7792  - 4819.84773 - (255,000+12250)

= 59,632.78

8 0
3 years ago
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