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bazaltina [42]
3 years ago
5

Q 20.27: Liberty Bicycles currently sells unassembled bikes for $240 each. The variable production costs for each bike are $35 a

nd the fixed production costs are $72. Liberty is thinking about selling the bikes fully assembled for $300 each. The variable costs for assembling one bike will be $18 and the fixed costs will be $31. Given these figures, Liberty will increase its net income per unit by ________ if it opts to assemble the bikes.
Business
1 answer:
alukav5142 [94]3 years ago
4 0

Answer:

$11

Explanation:

Find the incremental effect on net income of assembling the bikes as follows :

<u>Incremental analysis for assembling the bikes per unit</u>

Sales ( $300 - $240)                    $60

Less incremental costs :

Variable costs                               ($18)

Fixed production costs                 ($31)

Incremental Income/(loss)              $11

<u>Conclusion</u>

Thus  Liberty will increase its net income per unit by $11  if it opts to assemble the bikes.

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One reason why a blanket obligation for all employees to obey their employers no matter what is unreasonable is that the choice
Serjik [45]

Answer:TRUE

Explanation:COERCIVE FORCE is a force applied to a person or a group of persons in order to make them carry out an involuntary action or actions. It is used by employers of labor in order to mandate their employees to carry out certain activities. All Employees are required by their employers to obey the rules and regulations guiding the establishment even when it is not based on the interest of the employees.

3 0
3 years ago
Bramble, Inc. buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot i
svet-max [94.6K]

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determine the cost per CD for each group using tsv method

4 0
3 years ago
Corporate owners earn a return​ ________. A. through interest earnings and earnings per share B. through capital appreciation an
TEA [102]

Answer:

C. By realizing gains through increase in share price and cash divideneds.

Explanation:

For most corporations, the management must strive to ensure the firm is doing well in the market space. Once a company is doing well, it will affect its share price positively on the stock exchange.

An increase in the share price of fim is a gain to the firm and its corporate owners. I.e sharedholders. This means that the value of their investment in the firm has appreciated.

Furthermore, the firm must try to make profit which is one of the reason of being in business. A firm that is making profit will be able to declare same at the end of the financial period, hence corporate holders(shareholders) would be have part in profit declaration through dividened.

7 0
3 years ago
Jacob and Mason go to a diner that sells burritos for $5 and tacos for $3. They agree to split the lunch bill evenly. Mason choo
Rainbow [258]

Answer:

$1

Explanation:

The marginal cost refers to the cost of producing one additional unit or serving one more customer.

In this case, we have to determine the additional cost of Jacob ordering a burrito instead of a taco. As Mason chose the tacos and they agreed to split the lunch bill evenly, if Jacob decides to eat the tacos, the cost for each of them is:

$3+$3=$6/2= $3

If Jacob decides to eat the burrito:

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So, the marginal cost to Jacob ordering a burrito is:

$4-$3= $1

7 0
3 years ago
Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250).
Yanka [14]

Answer:

Ending Inventory  $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.  

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.  

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.  

Income Statement  

Sales revenue        $ 300,000  

Cost of goods sold  -$ 171,000  

Gross Profit            $ 129,000 43%

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Purchases                  $ 175,000

Cost of goods sold  -$ 171,000

Ending Inventory    $ 64,000

7 0
3 years ago
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