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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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ehidna [41]

Answer:

Explanation:

Using a financial calculator, input the following using CF function;

Initial Investment ; CF0 = -75,000

Yr1 cashflow ; C01 = 18,000

Yr2 cashflow ; C02 = 18,000

Yr3 cashflow ; C03 = 18,000

Yr4 cashflow ; C04= 18,000

Yr5 cashflow ; C05 = 18,000

Yr6 cashflow ; C06 = 18,000

Yr7 cashflow ; C07 = 18,000

Yr8 cashflow ; C08 = 18,000 +4,000 = 22,000

Required rate of return = 16%

then compute Net present value by keying in NPV, CPT = $4,404.74

5 0
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Mary worked on the assembly line at an automobile assembly plant. People weren't buying as many cars, and she was laid off. How
ahrayia [7]

We will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

Basically, the cyclical unemployment is the unemployment experience as a result of economic upturn and downturn.

The cyclical type of unemployment are mostly experienced during economic recessions.

It is obvious that people were not buying as many cars because of economic downturn.

Therefore, in conclusion, we will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

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<em>brainly.com/question/8865266</em>

7 0
3 years ago
Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent,
Nat2105 [25]

Answer:

The book value of this equipment at the end of four years if he ignores bonus depreciation $26,290.

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Cost of property = $67,600

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Year 1                  67,600         13520

Year 2                 54,080         17,306

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