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Artist 52 [7]
3 years ago
5

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]3 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

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On June 15, Harper purchased equipment for $100,000 from Imperial Corp. and signed for the goods as President of the company. He
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<u>Full question:</u>

On June 15, Harper purchased equipment for $100,000 from Imperial Corp. for use in its manufacturing process. Harper paid for the equipment with funds borrowed from Eastern Bank. Harper gave Eastern a security agreement and financing statement covering Harper’s existing and after-acquired equipment. On June 21, Harper was petitioned involuntarily into bankruptcy under Chapter 7 of the Federal Bankruptcy Code. A bankruptcy trustee was appointed. On June 23, Eastern filed the financing statement. Which of the parties will have a superior security interest in the equipment?

A. The trustee in bankruptcy, because the filing of the financing statement after the commencement of the bankruptcy case would be deemed a preferential transfer.

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<u>Answer:</u>

Eastern parties will have a superior security interest in the equipment because it perfected its security interest within the permissible time limits.

<u>Explanation:</u>

Eastern has a higher security interest because Eastern amended its security interest inside the allowable time deadlines. A perfected security interest in any security interest in an asset that cannot be demanded by any other party.  

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