The ad curve:

Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed c

photoshop1234 [79]

Answer:

24,000 units

Explanation:

We know,

According to the contribution margin approach,

Operating Income (EBIT) = Sales - Variable cost - Fixed cost

or, EBIT = (Price x Quantity) - (Quantity x VC per unit) - Fixed cost

As there are two methods,

Method 1, Variable cost = $1.00/unit, Fixed cost = $17,000

Method 2, Variable cost = $1.50/unit, Fixed cost = $5,000

According to the Question, as both methods will yield same EBIT at the same output levels,

Method 1 EBIT = Method 2 EBIT

or, (Price x Quantity) - (Quantity x $1.00) - 17,000 = (Price x Quantity) - (Quantity x $1.50) - $5,000

or, (Quantity x $1.50) - (Quantity x $1.00) = $(17,000 - 5,000) [Deducted (price x quantity from both the sides]

or, $0.50 x Quantity = $12,000

or, Quantity = $12,000/$0.50

Hence, Quantity = 24,000 units

At 24,000 output level, the EBIT of both methods will be same.

4 0

3 years ago

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither

sertanlavr [38]

Answer: Statement 1 ( Laptop) = Producer surplus

Statement 2 ( watch ) = Neither

Statement 3 ( jersey sweater) = Consumer surplus

Explanation:

Hi, Consumer surplus happens when the price that consumers pay for a product or service is less than the price they're willing to pay.

Even though I was willing to pay up to $46 for a jersey sweater, I bought a jersey sweater for only $39. Consumer surplus

Producer surplus is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

I sold a used laptop for $149, even though I was willing to go as low as $140 .Producer surplus

I sold a watch for $59 on eBay last week. This week, someone offered me $145 for it. neither

Feel free to ask for more if needed or if you did not understand something.

5 0

3 years ago

Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following

mixas84 [53]

Answer:

Part a

Ultimate Audio Company

Sales Budget

For the Month Ending June 30

Product and Area Unit Sales Volume Unit Selling Price Total Sales

Model U500 :

Northeast Region 140,000 $45 $6,300,000

Southwest Region 160,000 $45 $7,200,000

Total $13,500,000

Model U500 :

Northeast Region 100,000 $80 $8,000,000

Southwest Region 125,000 $80 $10,000,000

Total $18,000,000

Total Revenue from Sales $31,500,000

Part b

Ultimate Audio Company

Production Budget

For the Month Ending June 30

Model U500 Model S1000

Expected Units to be Sold 300,000 225,000

Add Desired Closing Inventory 30,000 15,000

Total 330,000 240,000

Less Desired Opening Inventory (25,000) (10,000)

Total Production 305,000 230,000

Explanation:

Note : I have attached the complete question as images below !

A Sales Budget shows the Total Expected Revenue from sale of budgeted units.

Total Revenue = Total Expected Units Sales x Selling Price Per Unit

A Production Budget shows the number of units to be produced to meet the Sales and Inventory targets

Total Production = Expected Sales + Desired Closing Inventory - Desired Opening Inventory

5 0

3 years ago

"Analyze why the principled negotiation would be the most suitable strategy in international trade negotiation? Take examples to

erica [24]

The reason principled negotiation would be the most suitable strategy in international trade negotiation is because it helps a party to leverage his/her principles of the opponent to win the negotiation.

The principled type of negotiation is recognized as an interest-based class of negotiation.

A principled negotiation is known as a winner-take-all style of negotiation that is focused on a specific goal of winning.

In a principled type of negotiation, there are no space for consideration of other party’s needs and requirements.

However, a principled negotiations is limited because it can fail to settle dispute or conflict even if a parties has the highest intentions and negotiating skills.

In conclusion, the reason principled negotiation would be the most suitable strategy in international trade negotiation is because it helps a party to leverage his/her principles of the opponent to win the negotiation.

Read more about principled negotiation

brainly.com/question/6106694

6 0

2 years ago

3. As the crisis in Venezuela deepened in late 2002 and early 2003, on January of 2003 the VEF was trading VEF1400/$. By Februar

aleksley [76]

Answer: 39.29%

Explanation:

For us to calculate the percentage change, we have to deduct the trading for VEF in January from the trading for VEF in February and then divide by VEF trading in January. This will be:

= (1950 - 1400)/1950

= 550/1400

= 0.3929

= 39.29%

The percentage change in January is 39.29%.

6 0

3 years ago