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Kitty [74]
3 years ago
11

A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 f

or packing each hotdog and monthly $46.00, $25.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits
Business
1 answer:
Gemiola [76]3 years ago
8 0

Answer: $4.87

Explanation:

The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.

Contribution margin = Selling price - variable costs

= Selling price - Raw materials - packing costs

= 17 - 11.23 - 0.90

= $4.87

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Answer: 189400

Explanation:

The dollar amount of sales that must be made to produce the target income would be:

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7 0
3 years ago
Units Produced 20,000
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Answer:

Instructions are below.

Explanation:

Giving the following information:

Units Produced 20,000

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Unit Sales Price $ 240

Full Manufacturing Cost Per Unit $97

<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>

Income statement:

Sales= (17,000*240)= 4,080,000

Cost of goods sold= (17,000*97)= (1,649,000)

Gross profit= 2,431,000

Variable Selling Expenses=  (71,000)

Fixed General and Administrative Costs= (88,000)

Net operating income= 2,272,000

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3 years ago
What is the term for a more complex production strategy that combines approaches from more than one basic strategy?
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Answer:

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Answer:

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Hope this helps :)

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3 years ago
Read 2 more answers
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