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
Ray Of Light [21]
3 years ago
7

The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc

s. Price and cost data are as follows: Selling price per unit (package of two CDs) 25.00Variable costs per unit: Direct material 10.50 Direct labor 5.00Manufacturing overhead 3.00 Selling expenses 1.30Total variable costs per unit 19.80 Annual fixed costs: Manufacturing overhead 192000 Selling and administrative 276000Total fixed costs 468000Forecasted annual sales volume (120,000 units) 3000000 In the following requirements. Ignore income taxes.
1. If the company's direct-labor costs do increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio?2. What is Serendipity sounds break even point in units?3. How many units would be Serendipity sound have to sell in order to earn 260000?
Business
1 answer:
OlgaM077 [116]3 years ago
6 0

Answer:

  1. $25.50
  2. 90,000 units
  3. 140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

You might be interested in
Elly owns a small coffee shop. she has only one employee. one​ weekend, she decided to take a break from work. she is wondering
Rudiy27
<span>The answer to your question is 
</span>\boxed{\bf C.~backwards~induction}&#10;<span>

</span>
\bf Explanation:
<span>
Backward induction is a process of decision making where you reason backward of the situation. 
</span><span>
Hope this helped!</span>
5 0
3 years ago
Which of the following is not a positive of having a large trade​ deficit? A. A large trade deficit can signal the positive expe
krok68 [10]
The answer for this one is B
3 0
3 years ago
If a company was trying to find the best production strategy which maximized their total profits using an optimization model, th
vredina [299]

Answer: Constraint

Explanation:

The company data is not attached but this should be correct.

Constraints enable companies and entities to engage in sensitivity analysis which would enable them find out optimal quantities of production and production strategy.

Constraints show how much of something is needed to get something done so in making time the constraint, the company is trying to find out how much time is needed in the fabrication department for goods in order for profits to be maximized.

3 0
3 years ago
Inventory is an extra cost associated with the Aggregate Production Planning strategy of _____
goldfiish [28.3K]

Answer:

Production

Explanation:

6 0
3 years ago
In the event that a definite indicator is recognized, the corresponding ____ must be activated immediately.
photoshop1234 [79]
In the event that a definite indicator is recognized, the corresponding  incident response (IR) plan must be activated immediately.

An incident response typically know as an IR plan allows one to test their companies response to a security incident. This will serve to better detect and protect computer security cyberattacks. Having an incident response plan intact is very important because the goal is to have little to no damage on the business and keep operations running smoothly.
3 0
3 years ago
Other questions:
  • Which is missing in most areas that do not have karst topography?
    10·1 answer
  • When estimating the cost of equity by use of the bond-yield-plus-risk-premium method, we can generally get a good idea of the in
    10·1 answer
  • When you choose to buy a good or service you make your decision in​ ____________ while the people who produce the good or servic
    5·1 answer
  • Our society is increasingly becoming more diverse. Discuss how this affects you as an individual, an organization, and society a
    12·1 answer
  • How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/
    8·1 answer
  • Cotton Brokers, Inc., enters into a contract to sell denim clothing to Delite Natural Fashion store, which in turn sells a pair
    15·1 answer
  • The Fox Company uses the weighted average method. The beginning work in process consists of 20,000 units (100% complete as to ma
    13·1 answer
  • Click on the item below that contains a comma splice.
    9·1 answer
  • Foxburg Company has the following information: Work-in-Process Finished Goods Materials Beginning inventory$1,250 $1,350 $1,450
    15·1 answer
  • Valuing cash flows with infinite growth in the dividend discount models (DDMs): a. cannot be calculated because growth to infini
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!