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astraxan [27]
3 years ago
11

The total market demand for toys in Springfield is 100,000 units. A company manufacturing toys has a variable cost is $10 per to

y. Selling price is $18 per toy and Company Fixed cost is $160,000. Calculate the break Even Volume it should obtain to reach a target profit of $200,000. 25% 35% 40% 45% None of the above
Business
1 answer:
jarptica [38.1K]3 years ago
5 0

Answer:

    = 45%

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level, profit is zero because  the total revenue  is equal to total cost.</em>

The break-even point is calculated as

Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit

<em>Contribution per unit = Selling Price - Variable cost</em>

<em>So the units requited to achieve target for Springfield is:</em>

Units to achieve target profit

= (160,000 + 200,000)/(18-10)

  =  45,000 units

In % = (45,000/100,000 ) × 100

      = 45%

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marshall27 [118]

<u>Explanation</u>:

This is an example of a linear programming problem.

THE CONSTRAINTS

Let d, c represents number of desk and chair.

Marketing restrictions

c ≥ 2d; which can be written as

2d - c ≤0

Wood restriction

4d + 3c ≤ 20

OBJECTIVE FUCTION (MAX)

= 40d + 25c

Where d ≥ 0, c ≥ 0

With this details you can then find the solutions either graphically or using  any other linear programming solution methods.

5 0
3 years ago
What are the macroeconomic conditions affecting the IT industry? Select "yes" for those statements that are accurate and choose
RUDIKE [14]

Answer:

a. From a political perspective, Ricoh should be aware of regulations from ITAC (Information Technology Association of Canada) who is actively promoting and supporting the expansion of the IT services industry in Canada as this move will likely impact Ricoh in many ways.   - Yes

b. From an economic perspective, Canada enjoys a strong economy with a strong GDP growth.  -  Yes

c. Low oil prices are causing turmoil in business investment in western Canada, leading to a negative impact for the economic component of the macro-environment.  -  Yes

d. A weak Canadian dollar makes the cost of importing more expensive. - No

Explanation:

  • The macroeconomic conditions that impact the business in terms of the economic growth rate. The use of GNP and GDP to measure the growth. The macroeconomic phenomenon estates the patterns and conditions from the large aspects of the economy.
3 0
2 years ago
Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2018. In October 2018, Rick Co.'s Board of Direc
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Answer and Explanation:

The journal entry to record the given transaction is as follows

Retained earning Dr (0.30 million × $54) $16.2 million

      To Common stock (0.30 million × $1) $0.3 million

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(Being the stock dividend is declared)

The computation of the shares after declaring the dividend is

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6 0
3 years ago
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Answer:

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Explanation:

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4 0
2 years ago
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Ulleksa [173]

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

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Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

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Total variable cost = $6.00 × 100 = $600

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Change in cost = $800 - $600 = $200

3 0
2 years ago
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