Answer:
10,000 units
Explanation:
Given:
Total fixed costs for proposal A = $50,000
Total fixed costs for proposal B = $70,000
Variable cost for proposal A = $12
Variable cost for proposal B = $10
Revenue generated by each vendor = $20
let the number of units be 'x'
Now,
Cost of proposal A = Cost of proposal B
Fixed cost + x × Variable cost of proposal A = Fixed cost + x × Variable cost of proposal B
or
$50,000 + x × $12 = $70,000 + x × $10
or
x × $12 - x × $10 = $70,000 - $50,000
or
x × $2 = $20,000
or
x = 10,000 units
gimme something to base it off of and i can get ya one
The return on investment for this division is (B) 20%.
<h3>
What is the return on investment (ROI)?</h3>
- Return on investment (ROI) or return on costs (ROC) is a ratio of net income to investment over time (costs resulting from an investment of some resources at a point in time).
- A high ROI indicates that the benefits of the investment outweigh the costs.
- ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
- It is one method of connecting profits to capital invested in economic terms.
<h3>To find the return on investment for this division:</h3>
= income/average invested assets
= $40,000/$200,000
= return on investment
= 20%
Therefore, the return on investment for this division is (B) 20%.
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Correct question:
The Midwest Division of Grainger Company has an investment center average invested assets of $200,000 and an investment center income of $40,000. What is the return on investment for this division?
(A) 500%
(B) 20%
(C) 25%
(D) 80%
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750