All categories

2 years ago

Compute the selling price if variable costs are $16 per unit. Determine the formula used to calculate the selling price.

Business

1 answer:

dezoksy [38]2 years ago

3 0

Answer: $40

Explanation:

Selling price can be calculated through the contribution margin equation;

Contribution margin = (Selling Price - Variable cost) / Selling Price

Contribution margin = Fixed costs/break-even point

= 660,000/1,100,000

= 60%

60% = (Selling Price - 16) / Selling Price

Selling price * 60% = Selling price - 16

16 = Selling price - (0.6 * selling price)

16 = Selling price * 40%

16/40% = Selling price

Selling price = $40

You might be interested in

Imagine that you are given $3,000 to plan a vacation for your family. Research destinations and choose one. Research the destina

torisob [31]

A blueprint for creating a vacation plan is;

Total budget= $3,000
Transportation= $700
Lodging for 6 days= $1,200

<h3>What is a Vacation?</h3>

This refers to the time taken out for relaxation and away from work and stress to a luxury destination.

Hence, we can see that the complete plan is given below:

Feeding= $600
Tour guide= $100
Miscellaneous= $400.

Read more about vacation plans here:
brainly.com/question/860450

4 0

2 years ago

Tara and her parents want to save at least $40,000 for college in 8 years. Which statement describes the most effective savings

Minchanka [31]

Tara and her parents should make deposits of $450 every month into a college savings account.

4 0

2 years ago

Read 2 more answers

Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust

Tatiana [17]

Answer:

Total allocated cost= $146.4

Explanation:

Giving the following information:

Julie Stone visited the hotel for a 6-night stay.

Julie had 3 meals in the hotel during the visit.

guest check-in= $8.40 per guest check-in

room cleaning= $21.00 per room cleaning

meal service= $4.00 per served meal

<u>To allocate costs based on the activity, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

guest check-in= 8.40*1= 8.4

room cleaning= 21.00*6= 126

meal service= 4.00*3= 12

Total allocated cost= $146.4

3 0

2 years ago

Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its o

Kisachek [45]

Answer:

the available options for the question are,

A. Cash Cr. $18, Food Revenue Dr. $18,

B. Cash Dr. $18, Food Revenue Dr. $18

C.Cash Dr. $18, Food Revenue Cr. $18

D. Cash Cr. $18, Food Revenue Cr. $18

and the correct answer is C.Cash Dr. $18, Food Revenue Cr. $18

Explanation:

the answer is simple. once they implement the accounting system, all the transaction will have at least a double entry.

when a cash sale is made for $18, this is a revenue stream for the business, while the cash balance of the business increases as well. Revenue account is an income and an increase in income is treated as increase in credit while the cash balance is an asset, and the increase of the asset is treated as a debit.

if you look at options A, B and D, all of these transactions are either mixed up or have both credits or debits which is wrong, because of this, only the answer C is correct.

5 0

2 years ago

Money managers:

yawa3891 [41]

The answer is D) are on the "but side" of Wall Street.
Just read the text. I'm 100% sure. Text below.

7 0

3 years ago

Read 2 more answers

Compute the selling price if variable costs are ​$16 per unit. Determine the formula used to calculate the selling price.

Compute the selling price if variable costs are $16 per unit. Determine the formula used to calculate the selling price.