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Rufina [12.5K]
3 years ago
12

Exotic Roses, owned by Margarita Rameriz, provides a variety of rare rose bushes to local nurseries that sell Rameriz's roses to

the end consumer (landscapers and retail customers). Rameriz grows the roses from cuttings that she has specifically cultivated for their unusual characteristics (color, size, heartiness, and resistance to disease). Margarita's roses are in great demand as evidenced by the wholesale price she charges nurseries, $15 per potted plant. Exotic Roses has the following cost structure (variable costs are per potted plant): Fixed Costs per Year Variable Costs Plant materials $ 0.50 Pot 0.30 Labor $ 8,000 0.70 Utilities 9,000 Rent 7,500 Other costs 2,500 Required: a. How many potted rose plants must Exotic Roses sell each year to break even? b. If Rameriz wants to make profits of $10,000 before taxes per year, how many potted rose plants must be sold? c. If Rameriz wants to make profits of $10,000 after taxes per year, how many potted rose plants must be sold assuming a 35 percent income tax rate?
Business
1 answer:
otez555 [7]3 years ago
4 0

Answer:

A) break even point= 1407 pots

B) pots= 2148 units

C) pots= 2547 units

Explanation:

We were provided with the following information:

Price= $15

Variable Costs:

Plant materials $ 0.50

Pot 0.30

Labor $ 8,000 ($0.70 hour)

Fixed Costs

Utilities 9,000

Rent 7,500

Other costs 2,500

A) break-even point= fixed cost/ contribution margin

Fixed cost= 9000+7500+2500= $19000

CM= P - Vc= 15 - (0,50+0,30+0,70)=$13,5

break-even point= 19000/13,5= 1407 units

B) Profit= $10000

break-even point= (fixed cost+profit)/ contribution margin

break-even point= 29000/13,5= 2148 units

C) t= 0,35

Profit before taxes= profit after taxes/(1-t)= 10000/0,65=$15385

break-even point= (fixed cost+profit before taxes)/ contribution margin= (15385+19000)/ 13,5= 2547 units

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The question is incomplete. The complete question is :

A manufacturer of mountain bikes has the following marginal cost function:

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where q is the quantity of bicycles produced.

When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.

a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?

b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?

Solution :

Given :

$C'(q)=\frac{700}{0.7q+8}$

a). Fixed cost, FC = $ 2800

Total cost to produce 30 bicycles is :

 $C = 2800 + \int_0^{30} C'(q) \ dq$

      $ = 2800 + \int_0^{30} \frac{700}{0.7q+8} \ dq$

     $= 2800+700\left[\frac{\ln (0.7q+8)}{0.7}\right]^{30}_0$

     $=2800+1000[\ln ((0.7 \times 30)+8)- \ln 8 ]$

     $= 2800 +1000 [\ln 29 - \ln 8]$

    = 2800 + 1287.85

    = $ 4087.85

b). Total selling price = $ (200 x 30)

                                   = $ 6000

    Profit  =  6000 - 4087.85

                = $ 1912.15

     

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3 years ago
Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insuffici
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Answer:

Future Value= $158,475.64

Explanation:

Giving the following information:

He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.

I assume we have to determine the value of the investment at the time of retirement.

<u>We need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit= 500

n= 15*12= 180

i= 0.07/12= 0.005833

FV= {500*[(1.005833^180) - 1]} / 0.006833

FV= $158,475.64

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The assessed value of Sidney's home is $350,000, but the home was recently appraised at $225,000. As a result, Sidney believes h
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Answer:

Depending on the reason why Sidney requested the appraisal, she has two options:

  1. If Sidney got the appraisal because she thought her property taxes were too high, she can file a complaint with her local board of assessment review (BAR) in order to get her taxes reduced.
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3 years ago
Not showing up to work on time on a regular basis could cause your manager to question your:
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Answer:

Professionalism.

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Professionalism can be defined as an act which typically involves the positive behavior, conduct and attitude that are being exhibited by an employee. Thus, being a professional simply means that the person displays some level of professionalism such as being responsible, punctual, excellent, ethical, respectful, dedicated, dogged etc.

Basically, it is very important and essential for employees to act in a professional manner while performing their job functions or executing various tasks.

Hence, not showing up to work on time on a regular basis could cause your manager to question your professionalism.

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On December 15, 2018, the board of directors of Lomas Corporation declared a cash dividend, payable on January 8, 2019 of $0.80
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Answer: decrease retained earnings $1.60 million and increase liabilities by $1.60 million.

Explanation:

The dividend on common shares will be:

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Then, the journal entry will be:

Debit: Retained earnings $1.6 million

Credit: Dividend payable $1.6 million

The answer will be to decrease retained earnings $1.60 million and then increase liabilities by $1.60 million.

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