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Afina-wow [57]
3 years ago
11

A company desires to sell a sufficient quantity of products to earn a profit of $400,000. If the unit sales price is $20, unit v

ariable cost is $12, and total fixed costs are $800,000, how many units must be sold to earn net income of $400,000?
A) 225,000 units
B) 150,000 units
C) 120,000 units
D) 90,000 units
Business
1 answer:
Amanda [17]3 years ago
3 0

Answer:

Number of units to be sold = 150000

So option (b) is correct option

Explanation:

We have given net income = $400000

Unit sales price = $20

Unit variable cost= $12

Total fixed cost $800000

Units must be sold to earn net income of $400,000 =

=profit+\frac{total\ fixed\ cost}{sale\ price}-ubit\ variable\ cost=400000+\frac{800000}{20}-12=150000units

So number of units to be sold = 150000

So option (b) is correct option

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Answer:

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3 years ago
Suppose that two Japanese companies, Hitachi and Toshiba, are the sole producers (i.e., duopolists) of a microprocessor chip use
Dima020 [189]

Answer: Please refer to Explanation

Explanation:

a) When both Hitachi and Toshiba engage in a limited campaign, they both earn $11 million.

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I have attached a photo to show the payoff matrix as a table.

b) In the absence of a binding and enforceable agreement, that is to say that if both firms are not colluding, Hitachi's dominant strategy would be to engage in an EXTENSIVE PROMOTIONAL CAMPAIGN.

A Firm's dominant strategy in absence of an agreement is that strategy that a firm can go on and make a maximum amount of profit regardless of what the other firm does.

Should Hitachi engage in an Extensive Campaign, they will make $16 million in quarterly profit if Toshiba engages in a Limited Campaign. Should Toshiba also decide to engage in an Extensive Campaign, then Hitachi makes a profit of $8 million. This is therefore their best alternative as opposed to embarking on a limited Campaign where there is a chance that they will make $4 million.

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3 years ago
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2 years ago
On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executives. It entitled them to receive ca
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Answer:

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Explanation:

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