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Nata [24]
3 years ago
14

Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5.49, but the same product now sells a

t $6.99. Assuming inflation has been constant those four years, and that the entire cost increase is attributed to inflation, what was the inflation rate
Business
1 answer:
Ainat [17]3 years ago
6 0

Answer:

6.22%

Explanation:

Price of sandwich four years ago, Present value = $5.49

Price of sandwich, Future value = $6.99

It is given that the inflation has been assumed to be constant over these four years.

Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.

Inflation rate:

=(\frac{Future\ value}{Present\ value}) ^{\frac{1}{n} } -1

=(\frac{6.99}{5.49}) ^{\frac{1}{4} } -1

= 1.0622487 - 1

= 0.0622487 or 6.22%

Therefore, the inflation rate is 6.22%

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Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to
antoniya [11.8K]

Answer:

a. $120

b. 5,000 units

c. 7,000 units

Explanation:

Hi, your question is incomplete, I found the full question online and uploaded text and image below.

Workings and explanations :

Contribution margin per unit = Sales - Variable Cots

                                                = $200 - $80

                                                = $120

Break even (units) = Fixed Costs ÷ Contribution margin per unit

                               = $600,000 ÷ $120

                               = 5,000 units

Unit Sales to achieve a target profit = (Targeted Profit + Fixed Costs) ÷ Contribution margin per unit

                                                           = ($240,000 + $600,000) ÷ $120

                                                           = 7,000 units

Margin of Safety = Expected sales - Break even Sales

Note : There is no much details about the current sales level

<u>FULL DETAILS OF THE QUESTION IS AS FOLLOWS :</u>

<em>Information concerning a product produced by Ender Company appears here: Sales price per unit $ 200 Variable cost per unit $ 80 Total annual fixed manufacturing and operating costs $ 600,000</em>

5 0
3 years ago
Iverson Company purchased a delivery truck for $45,000 on January 1, 2018. The truck was assigned an estimated useful life of 5
Alla [95]

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $45,000

Useful life= 5 years

Salvage value= $10,000

<u>To calculate the annual depreciation under the double-declining balance method, we need to use the following formula:</u>

Annual depreciation= 2*[(book value)/estimated life (years)]

<u>2018:</u>

Annual depreciation= 2[(45,000 - 10,000) / 5]

Annual depreciation= 14,000

<u>2019:</u>

Annual depreciation= 2*[(35,000 - 14,000)/5]

Annual depreciation= $8,400

4 0
3 years ago
At​ Mark's company, the policy and procedures manual is two inches thick and seemingly covers every single aspect of work in gre
Greeley [361]

Answer:

C. mechanistic

Explanation:

Based on​ this, it would appear that Mark works for​ a mechanistic organization

8 0
3 years ago
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

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Amount realized = cash received + FMV of other property + buyer’s assumption of seller’s liabilities – seller’s expenses

Amount realized = 600 + 200 + 0 -0

= $800

Adjusted basis = initial basis – cost recovery deductions

Adjusted basis = 2500-2200 = $300

Gain or loss realized = amount realized – adjusted basis = 800-300

= $500

Therefore Darla's amount realized on the sale is $800 and the adjusted basis in the assets sold is $300, producing a realized gain on the sale of $500

8 0
3 years ago
Doing taxes, taking people's blood pressure, and using video editing software are examples of _______ skills.
earnstyle [38]

Doing taxes, taking people's blood pressure, and using video editing software are examples of programming skills.  Program  provides a means for us to interact with an use the computer, even if we lack specialized programming skills   There are software available to help us to do different tasks.

8 0
3 years ago
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