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ella [17]
3 years ago
6

A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $400,000. To earn a 25 percent markup on selling

price, the manufacturer would charge _____ for each of the 50,000 watches it expects to sell.
Business
2 answers:
masha68 [24]3 years ago
8 0

Answer:

$24

Explanation:

50,000 watches are sold

variable cost per watch = $10

fixed costs = $400,000

contribution margin to break even = $400,000 / 50,000 watches = $8 per watch

selling price without markup = $8 (contribution margin) + $10 (variable costs) = $18

X - 25% markup = $18

0.75X = $18

X = $18 / 0.75 = $24

WITCHER [35]3 years ago
6 0

Answer:

$22.50 per unit

Explanation:

Mark -up is the percentage of cost that is earned as profit.

Using mark-up,

Selling price = Total cost + total profit

Total cot = Fixed cost + variable cost

Total costs = $400,000 +  (10× 50,000)

                   = $900,000

Sales revenue = 125%× 900,000

                       = 1,125,000

Selling price per unit = Sales revenue/units

                       =1,125,000/50,000

                     = $22.50 per unit

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Marina CMI [18]

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

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3 0
3 years ago
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Anton [14]

Answer:

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Explanation:

Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.

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3 years ago
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SpyIntel [72]

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