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V125BC [204]
3 years ago
8

Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects

to sell 800 units this year. What is the contribution margin in total dollars
Business
1 answer:
kodGreya [7K]3 years ago
8 0

Answer:

$48,000

Explanation:

From the question, we are given the following;

Per unit selling price of the product = $150

Variable costs per unit = $90

Fixed costs = $18,000

Expected units to be sold 800

Therefore,

Contribution margin in dollars = Selling price - Variable costs

= ($150 × 800) -($90 × 800)

= $120,000 - $72,000

=$48,000

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Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expe
attashe74 [19]

Answer:

Galla should charge $47

Explanation:

Data provided in the question:

Desired markup = 25% of the total cost

Units to be sold = 5,000

Variable product cost per unit = $15

Variable administrative cost per unit = 10

Total fixed overhead = $45,000

Total fixed administrative = $18,000

Now,

Total variable cost

= Variable product cost per unit × Number of units to be sold

= $15 × 5,000

= $75,000

Total variable administrative cost

= Variable administrative cost per unit × Number of units to be sold

= $10 × 5,000

= $50,000

Therefore,

Total cost

= Total variable cost  + Total variable administrative cost + Total fixed overhead + Total fixed administrative

= $75,000 + $50,000 + $45,000 + $18,000

= $188,000

Thus,

Price per unit = Total cost ÷ Number of units to be sold

= $188,000 ÷ 5,000

= $37.6

Price after markup = Price per unit + 25% of price per unit

= $37.6 + ( 0.25 × $37.6 )

= $37.6 + $9.4

= $47

Hence,

Galla should charge $47

4 0
3 years ago
Match each type of bond with its description. a. Secured Secured drop zone empty. b. Callable bonds Callable bonds drop zone emp
Dovator [93]

Answer:

a. Secured bonds - A secured bond is a bond that is issued with a collateral backing the loan.

b. Callable bonds - A bond that the issuer can call off, or pay off, at any time, not necessarily at maturity.

c. Convertible bonds - A bond that can be converted into equity (stocks). If the bondholder wishes, he can exchange his bond for ownership of stocks in the bond issuer firm.

d. Term bonds - A bond that has one single, specific maturity date.

e. Serial bonds - A bond that has several maturity dates.

6 0
3 years ago
The manufacturing overhead budget at Amrein Corporation is based on budgeted direct labor-hours. The direct labor budget indicat
Sergeeva-Olga [200]

Answer:

$51,790

Explanation:

Amrein Corporation Manufacturing Overhead Budget

August

Budgeted direct labor-hours 2,500

Variable manufacturing overhead rate $5

Variable manufacturing overhead $12,500

($2,500×$5)

Fixed manufacturing overhead $43,010

Total manufacturing overhead $55,510

($43,010+$12,500)

Less depreciation 3,750

Cash disbursement for manufacturing overhead $51,790

Therefore the August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be $51,790

5 0
3 years ago
Read 2 more answers
Find the amount of the payment to be made into a sinking fund so that enough will be present to accumulate the following amount.
TEA [102]

Answer:

PV= $81,947.83

Explanation:

Giving the following information:

Future value= $95,000

Interest rate= 0.03

Number of periods= 5

To calculate the initial investment required to reach the objective, we need to use the following formula:

PV= FV/(1+i)^n

PV= 95,000/(1.03^5)

PV= $81,947.83

6 0
3 years ago
Boris, Inc. sells a single product for $900 per unit, including a 90-day warranty against defects. It is estimated that 3% of th
Dimas [21]

Answer:

the  amount that added to estimated liability is $1,330

Explanation:

The computation of the amount that added to estimated liability is as follows

= 800 units sold × 3% defective - five defective units

= 24 units - 5 units

= 19 units

Now the amount that should be added is

= 19 units × $70 per unit

= $1,330

Hence, the  amount that added to estimated liability is $1,330

The same is to be considered

7 0
3 years ago
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