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wel
3 years ago
6

Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed co

sts are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income. A. $5,990,990. B. $5,640,000. C. $2,991,004. D. $2,612,613. E. $3,378,378.
Business
1 answer:
mihalych1998 [28]3 years ago
7 0

Answer:

$5985,000

Explanation:

The computation of the sales amount in dollars is shown below:

= (Fixed cost + pre tax income) ÷ (Profit volume ratio)

where,  

Profit volume ratio = Contribution margin per unit ÷ Selling price per unit × 100

= $150  ÷ 450 × 100

= 33.33%

Contribution margin per unit = Selling price per unit - variable cost per unit

= $450 - $300

= $150

And, the fixed cost is $870,000 and pre tax income is $1,125,000

Now put these values to the above formula

So, the per unit would be equal to

= ($870,000 + $1,125,000)  ÷ 33.33%

= $5985,000

This is the answer but the same is not provided in the given options

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Answer:

Political and Legal

Explanation:

Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S. This is an example of how <u>political and legal</u> forces affect the marketing environment.

Business organisations operate within a political system and legal framework. Political factors determine economic policies like taxation and regulations. Business decisions are subject to, and are affected by political and legal factors.

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Such laws would either create new opportunities or threats for the businesses in existence.

In the Scenario above Hoffman-LaRoche and BASF AG must have violated regulations that protect consumer interests put in place by the government by wanting consumers to pay too high for such necessities as vitamins and huge fines have been imposed on them.

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ollegr [7]
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3 years ago
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20
irina [24]

Answer:

c. half of the order quantity

Explanation:

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is <u>half of the order quantity</u>

Economic order quantity is a quantity which minimizes the ordering cost and holding cost  

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ackson Co. needs to replenish its petty cash fund. Currently, it contains $11 in cash and receipts for supplies of $40 and deliv
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Answer:

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Explanation:

The journal entry is shown below:

Delivery expenses $49

Supplies expenses $49

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