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
goldfiish [28.3K]
3 years ago
11

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 106,000 units. After 106,0

00 units, the market becomes saturated and the price per unit falls from $16.00 to $9.80. Also, there are cost overruns at a production volume of over 106,000 units, and variable cost per unit goes up from $8.00 to $8.50. Fixed costs remain the same at $56,000.
a. Compute operating income at 106,000 units.b. Compute operating income at 206,000 units.
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

Option A. $792,000

Option B. $211,800

Explanation:

At the level 106,000 Units, the price per unit and variable cost per unit will remain at $16 and $8 per unit.

<u>Option A.</u>

Sales (106,000 Units * $16)               $1,696,000

Variable cost (106,000* $8)               $848,000

Fixed costs                                        <u>    $56000    </u>

Operating Profit                                  $792,000

<u>Option B.</u>

When the production exceeds 106,000 units level, the price per unit and variable cost per unit will remain at $9.8 and $8.5 per unit.

Sales (206,000 * $9.8)                      $2,018,800

Variable cost (206,000 * $8.5)          $1,751,000

Fixed costs                                         <u>   $56,000  </u>

Operating Profit                                    $211,800

The profit has been decreased substantially due to increase in Marginal cost.

You might be interested in
The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,0
Lana71 [14]

Answer:

Net Cash Flow from Financing Activities                    $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock                                         $90,000

Purchase of treasury stock                                          $50,000

Payment of dividends to common stockholders       $10,000

==============================================================

Net Cash Flow from Financing Activities                    $150,000

Note: Sales of equipment is not included in financing activity

6 0
2 years ago
The director of hr at multimedia corporation is concerned about some stereotyping which has occurred in the work environment. to
alex41 [277]

To combat this stereotyping the HR director has decided​ to<u> "adopt more transparent practices".</u>


Nowadays, pay transparency is an interesting issue among HR and compensation experts. Pay transparency doesn't need to be a win or bust approach where everybody knows every other person's compensation. Or maybe, we trust transparency is a range. It's how much an association will examine its general pay rehearses. Pay transparency is significantly something other than the dollar sum a business pays every worker. It's additionally being more open about how pay was resolved and giving a clarification of the organization's compensation grades.  

4 0
3 years ago
What does a formula do in a spreadsheet program? Apex
inessss [21]

A formula helps you understand the problem better!!!

4 0
3 years ago
Read 2 more answers
Lauren went to see a therapist, and during their first session they established clear goals coupled with assignments to be done
frozen [14]
Lauren's therapist was using Cognitive Behavioural Therapy [CBT]. CBT refers to a short term, goal oriented psychotherapy treatment that uses practical approach for problem solving. The principal goal for using this technique is to change the behavior or the mentality that is responsible for the patient problem.
7 0
3 years ago
Before Pepsi-Cola stamped freshness dates on its cans, few consumers considered cola freshness an issue. After Pepsi spent about
Vilka [71]

Below are the complete options:

changing beliefs about the extent to which a brand has certain attributes

encouraging the consumer to use stimulus generalization

adding new attributes to the product

encouraging the consumer to use stimulus discrimination

changing the importance of attributes

Answer:

changing the importance of attributes

Explanation:

Freshness dates shows for how long a drink can be considered to not have expired. For example Pepsi can be considered to give freshness from 6-9 months after the date printed on the bottle.

Pepsi spent about $25 million on advertising and promotion related to freshness dates. Initially freshness dates were only seen as important by a few people.

This resulted in 61 percent of cola drinkers now thinking it is important.

This exemplifies how importance of a product's attribute can be changed

6 0
2 years ago
Other questions:
  • General motors’ stand against apartheid in south africa was based upon what came to be known as _____. the human rights moveme
    5·1 answer
  • The types of prices that appear least often in ads are ____ prices.
    8·2 answers
  • A space into which you can safely direct your vehicle with the lowest possible risk is referred to as your
    6·1 answer
  • Variable costs change with Group of answer choices changes in target return pricing. changes in fixed costs. changes in the quan
    10·1 answer
  • Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale
    10·1 answer
  • Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of
    15·1 answer
  • Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next
    5·1 answer
  • If your business receives a loan for $40,000,
    11·1 answer
  • Sheridan Company receives a $14000, 3-month, 8% promissory note from Carla Vista Company in settlement of an open accounts recei
    9·1 answer
  • What do stocks and bonds do?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!