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Natalka [10]
3 years ago
14

Jaybird Company operates in a highly competitive market where the market price for its product is $50 per unit. Jaybird desires

a $15 profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable product cost per unit $ 15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000 To achieve the target cost per unit, Jaybird must reduce total expenses by how much?
Business
1 answer:
frutty [35]3 years ago
4 0

Answer:

Profit if 5,000 units were produced   $                    $

Total sales (5,000 x $50)                                     250,000

Less:

Total cost:

Total variable cost (5,000 x $25) 125,000

Total fixed cost                               <u>63,000  </u>        <u>188,000</u>

 Net profit                                                               <u>62,000</u>

Desired profit = $15 x 5,000 units = $75,000

Difference in profit = Desired profit - Net profit

                               = $75,000 - $62,000

                               = $13,000

Reduction in total expenses = Difference in profit

Reduction in total expense = $13,000

New total expenses = $188,000 - $13,000 = $175,000

The company should reduce the total expenses by $13,000 in order to achieve the target cost per unit.

                   

                 

Explanation:

In this case, there is need to determine the net profit if 5,000 units were produced. Then, we will obtain difference in profit by deducting the net profit from the desired profit. The difference in profit represents reduction in cost. The new total expenses will be the original total cost less reduction in cost. The total variable cost is the aggregate of variable product cost and variable administrative cost while the total fixed cost is the sum of total fixed overhead and total fixed administrative overhead.

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If Xerox commercializes PC technology and its rivals do not Xerox payoff is expected to be $250m, whereas the competitors’ payoff is $75m.

<h3>What is game theory?</h3>

This is the game strategy that involves two players where each of the players have to pick the most favorable choice based on the choice of the other person.

Here it would be best for Xerox to pick option B because this is where they would be able to get the most advantage.

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<h3>Complete question</h3>

Game theory can help us understand why Xerox did not successfully exploit the opportunity it had inIT. If both Xerox and competitors continue with old technology the payoff for XeroxSelect one:a.

is $150m, whereas the competitors’ payoff is $325m.

b. is $2

50m, whereas the competitors’ payoff is $75m.

c.

is $75m, whereas the competitors’ payoff is $250m.

d.

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3 0
1 year ago
What makes the demand for u. s. dollars change? in world demand for u. s. exports ______ the demand for u. s. dollars. a in the
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Increasing world demand for U.S. exports increases the demand for U.S. dollars. A rise in the U.S. interest rate differential​ increases the demand for U.S. dollars.

The official money of the United States of America is the USD (United States dollar). One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.

A country's currency will be in great demand if its exports exceed its imports since more people will want to buy its products. According to supply and demand economics, prices increase and the value of the currency increases when demand is high. Generally speaking, a country's currency will appreciate at higher interest rates. Higher interest rates frequently draw foreign investment, which raises both demand for and the value of the currency of the host nation.

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On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
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Answer:

a. Reversal entry:

Debit Rent expense $4,650

Credit Miscellaneous Expense $4,650

Correct Entry:

Debit Rent expense $4,650

Credit Cash $4,650

b. Reversal entry:

Debit Accounts payable $3,700

Credit Cash $3,700

Correct Entry

Debit Cash $3,700

Credit Accounts Receivable $3,700

Explanation:

Reverse entry is to simply close to zero the original entry that has been made in mistake. Afterwards, record the correct entry to properly account the transaction.

To reverse the previously made entry, we simply debit what is credited and debit what is credited.

a. We need to close the rent expense credited by debiting it and credit the miscellaneous expense that is previously debited to zereod out the mistake recording. Then to record the correct entry, Debit Rent expense and Credit Cash at the amount $4,650

b. Just ike what we did on the previous transaction, we will debit the Accounts payable and credit the cash that has been recorded by mistake to zereod out the balance and then make the correct entry. Debit Cash $3,700 and credit Accounts receivable $3,700.

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Novay_Z [31]
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