1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What was one positive effect of economic globalization?
kiruha [24]
A positive impact of economic globalization is the economic integration. The world as a global village has experienced an unprecedented level of economic integration in the sense that many companies across a wide range of countries have been able to propose a variety of products to the world, which would have been very difficult or even impossible in a context of locally based or centred economy.
5 0
3 years ago
Read 2 more answers
With a regressive tax system, as the level of income increases in an economy, the average tax rate will: 
A. Increase
B. Decreas
Ostrovityanka [42]

Answer:

The correct answer to the following question is option B) decrease.

Explanation:

Regressive tax is that of tax which is imposed in such manner that when the income level in the economy increases , the average tax rate would decrease. This type of tax has heavy burden on the low income people as it takes high proportion of their income. So it can be said here that there is an inverse relationship between tax payer's ability to pay ( which can be measured in income , assets or consumption) and the tax rates imposed.

6 0
3 years ago
Sonic Corp. manufactures ski and snowboarding equipment. It has estimated that this year there will be substantial growth in its
Ne4ueva [31]

the answer is expansion. but im not sure A or B

5 0
3 years ago
Read 2 more answers
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $703,938 and Allo
JulijaS [17]

The net realizable value of accounts receivable is $684,204

Explanation:

  • To calculate subtract the doubtful-accounts allowance from the total accounts receivable. The result will be the net realizable value of accounts receivable.
  • accounts receivable = $703,938
  • doubtful-accounts = $19,734.
  • the net realizable value of accounts receivable =
  • accounts receivable ± doubtful-accounts
  • Therefore, the net realizable value of accounts receivable is $684,204

7 0
3 years ago
When making competitive priority decisions the firm: must ensure the pwp is correctly established must select the correct supply
snow_tiger [21]

When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>


Making decisions requires exchanging off one thing against another.  

In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.

5 0
3 years ago
Other questions:
  • A(n) __________ website is essentially an electronic storefront with the primary purpose of converting an online browser into an
    14·1 answer
  • Suppose a firm manager has a base salary of $85,000 and earns 0.5 percent of all sales. Determine the manager's income if revenu
    15·1 answer
  • "how does an investor earn money by buying bonds at a discount"
    9·1 answer
  • In order to achieve a competitive advantage, Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market
    8·1 answer
  • Vulcan, Inc., has 7 percent coupon bonds on the market that have 13 years left to maturity. The bonds make annual payments and h
    13·1 answer
  • Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
    10·1 answer
  • If you pay for parking at a smart parking payment terminal powered by solar panels with a contactless visa card, which of the fo
    11·1 answer
  • The Absolute Zero Co. just issued a dividend of $3.40 per share on its common stock. The company is expected to maintain a const
    5·1 answer
  • Which of the following statements about government deficit spending is most accurate?
    13·1 answer
  • The primary role of money in the economy is to
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!