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
rjkz [21]
3 years ago
5

Miracle Clean's variable costs are $3.00 per bottle and Fixed Expenses are $350,000 per year. The company currently sells 150,00

0 bottles for $6.50 which results in profit of $175,000. The company is considering raising the selling price to $7.00 per bottle which is expected to decrease sales by 20%. If the price is raised, the number of units that must be sold to keep the profits unchanged is
Business
1 answer:
DerKrebs [107]3 years ago
7 0

Answer:

131,250= number of units

Explanation:

Giving the following information:

<u>We need to calculate the number of units to be sold to maintain a profit of $175,000.</u>

Unitary variable cost= $3

Fixed expenses= $350,000

Selling price= $7

Net income= total contribution margin - fixed cost

175,000= number of units*(7 - 3) - 350,000

525,000 = number of units*4

525,000 / 4= number of units

131,250= number of units

You might be interested in
An advantage of magazine advertising is that:
earnstyle [38]

Answer:

A suitable advantage of magazine advertisement is option C.

Explanation:

The magazine may be meant only for men or only for women or for both. Thus a suitable magazine maybe selected to make an appeal to a particular section of the community.

By using magazines as a medium for advertising, an appeal can be made to a large body of persons with similar tastes or covering a large area.

In the 21st century, promoting in print or in computerized magazines may appear to be silly. TV arrives at millions additional customers. Publicizing on your site costs not exactly on television. Furthermore, aren't magazines collapsing left and right?

In actuality, the magazine business, even in printed copy, is progressing nicely. New magazines are continually showing up, and various them succeed and flourish. Purchasing promotion space may not be modest, however it tends to be compelling.

Slender Focal point of Interests

Satellite television has some specialty stations, however magazines take practicing to the following level. Promoting in a magazine that takes into account a specialty crowd of devotees or experts focuses on that crowd absolutely.

Stogie Enthusiast provides food solely to stogie smoking perusers. Author's Review perusers are keen on whatever helps their composing professions. Crossties is the authoritative manual for the railroad crosstie industry. In the event that a magazine serves your fantasy segment, it could be a match made in heaven.

4 0
3 years ago
Read 2 more answers
True or False: A sole proprietor is personally responsible for all of the businesses debts, and may be legally required to pay o
arlik [135]
I have to guess true
8 0
3 years ago
Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union positi
rjkz [21]

Answer:

D. All the above are legal tactics that the union can use to pressure management to accept the union's position on an issue.

Explanation:

Each and everyone one of the options mentioned above are tactics adopted by the union in pressuring management to accept their position on most of the issues which they have or are arguing about.

5 0
4 years ago
Beedle issued a 10-year bond to Aeron Company on 1/1/20x6. The bonds have a 6% annual interest rate and pay interest semi-annual
Mama L [17]

1. The issue price of the bonds is<u> $215,589.16</u>.

2. An amortization schedule through 20x9 is as follows:

<h3>Amortization Schedule:</h3>

Period       PV             PMT   Interest Expense  Amortization        FV

1       $215,589.16     $6,000       $5,389.73            $610.27      $214,978.89

2      $214,978.89    $6,000      $5,374.47           $625.53      $214,353.36

Year 2

3     $214,353.36     $6,000      $5,358.83             $641.17        $213,712.20

4      $213,712.20     $6,000      $5,342.80           $657.20      $213,055.00

Year 3

5    $213,055.00     $6,000      $5,326.38            $673.62        $212,381.38

6     $212,381.38     $6,000      $5,309.53            $690.47        $211,690.91

Year 4

7      $211,690.91    $6,000      $5,292.27             $707.73        $210,983.18

8     $210,983.18    $6,000      $5,274.58            $725.42       $210,257.76

3. The journal entry recorded by Beedle on January 1, 20x6 is as follows:

Debit Cash $215,589.16

Credit Bonds Payable $200,000

Credit Bond Premium $15,589.16

  • To record the issuance of $200,000 at 6% interest, semi-annually.

4. The amount in the accounts at the end of 20x6 are:

A. Bond payable $200,000

B. Premium $14,353.36 ($15,589.16 - $610.27 = $625.53)

C. Fair value adjustment on Bond payable = $1,235.80 ($610.27 = $625.53)

D. Interest expense = $10,764.20

5. The journal entry to record the bond retirement transaction on 12/31/20X8 is as follows:

Debit Bonds Payable $200,000

Debit Bonds Premium $12,000

Credit Cash $212,000

  • To record the bond retirement.

<h3>Data and Calculations:</h3>

Maturity period = 10 years

Interest rate = 6% semi-annually

Interest payment dates = June 30 and December 31

Market rate = 5%

Face value = $200,000

Semi-annual coupon payment = $6,000 ($200,000 x 3%)

Fair value of the bonds at December 31:

12/31/20X6 $ 213,200

12/31/20X7 $ 213,300

12/31/20x8 $ 212,000

<h3>Issue Price Calculations:</h3>

N (# of periods) = 20 (10 years x 2)

I/Y (Interest per year) = 5%

PMT (Periodic Payment) = $6,000 ($200,000 x 6% x 1/2)

FV (Future Value) = $200,000

Results:

PV = $215,589.16

Sum of all periodic payments = $120,000 ($6,000 x 20)

Total Interest $104,410.84

Learn more about recording bond transactions at brainly.com/question/15877561

#SPJ1

5 0
2 years ago
During 2014 and 2015, Danny pays property taxes of $3,500 each year on a piece of land. During 2014, the land is vacant and unpr
motikmotik

Answer: the answer is C deduct $3500 each year.

Explanation: Whether the land is vacant and unproductive or it is used to generate income. The property tax for the land will be paid yearly

5 0
3 years ago
Other questions:
  • Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to det
    11·1 answer
  • Ramsey Corporation desires to earn target net income of $90,000. If the selling price per unit is $30, unit variable cost is $24
    7·1 answer
  • Paulette goes to an electronic store to purchase a refrigerator. After comparing the technical features, prices, and durability
    12·1 answer
  • For purposes of allocating joint costs to joint products, the estimated net realizable value at split-off is equal to A. final s
    11·1 answer
  • In russia what preceded the communist takeover of the government?
    15·1 answer
  • What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Adm
    8·1 answer
  • For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The o
    11·1 answer
  • Your broker is selling you an investment scheme in which you will receive $5,000 four years from now, $6,000 five years from now
    7·1 answer
  • The principle of exceptions allows managers to focus on correcting variances between.
    10·1 answer
  • Fixed costs that usually arise from annual spending decisions by management are called?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!