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3 years ago

"if Washburn achieves the sales target of 2,000 units at the $349 retail price, what will its profit be?"

Business

1 answer:

dybincka [34]3 years ago

5 0

Answer: $370,000

Explanation:

Your question isn't complete as there were some further questions asked before getting to this question.

The profit from 2,000 units at $349 will be:

Profit = Total revenue – Total cost

Total revenue = (P x Q)

= $349 x 2000

= $698000

Total cost = [FC + (UVC x Q)]=

= [$38,000 + ($145 x 2,000)]

=$38000 + $290000

= $328000

Profit = Total revenue - Total cost

Profit = $698000 - $328000

Profit = $370000

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ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $10,000 a

BigorU [14]

Answer:

$77,217

$11,289

Explanation:

Fist we will calculate the present value of $10,000 payment

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $10,000

r = rate of return = 10% / 2 = 5%

n = number of period = 5 years x 2 semiannual payments per year = 10 payments

PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]

PV of Annuity = $77,217

Now we will use the discounting method to calculate the present value of lump sum payment of $20,000

Present value = Future value x Present value factor

PV = FV x ( 1 + r )^-n

PV = $20,000 x ( 1 + 0.1 )^-6

PV = $11,289

6 0

3 years ago

Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 90

Nuetrik [128]

Answer:

$1905

Explanation:

Here we will have to calculate Economic Order Quantity to lower the ordering ordering and holding cost as much as we can. So here we will use the following formula to calculate the best number of units that we should order, which is as under:

Economic Order Quantity = SquareRoot (2 * Annual Demand * ordering cost per order / Holding cost per unit per year)

Here

Annual Demand = 900kg of palm oil per day * 52 weeks * 5 day a week / 7

Annual Demand = 900 * 52 * 5 / 7 = 33,429

And

Ordering cost per order = $57 per order

Annual holding cost per unit per year is 20% of $5.25 per kg which is $1.05.

So by putting values, we have:

Economic Order Quantity = Square Root (2 * 33,429 * 57 / 1.05)

Economic Order Quantity = 1905 kgs

4 0

3 years ago

"An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, w

lesantik [10]

Answer:

The expected annual return of Portfolio is 12.00%

Explanation:

The portfolio return is calculated by multiplying the individual security return with weight of individual security in the portfolio. We have three securities R, J and K with expected return on 12%, 18% and 8% with weight of 50%, 20% and 30%. Through multiplying them we get individual return of security that is 6%, 3.6% and 2.4%. The weighted average portfolio return is 12%

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4 years ago

Which sentence contains an error?

Marta_Voda [28]

a, since twenty-seven should say 27 or twenty seven without a dash

7 0

3 years ago

Read 2 more answers

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p

photoshop1234 [79]

Answer:

SONIC INC.

SALES BUDGET

FOR THE MONTH ENDING JUNE 30

Product and Area Unit sales volume Unit selling Price Total sales

Rumble

Midwest Region 12,000 $160 $1,920,000

South Region 14,000 $160 $2,240,000

Total 26,000 $4,160,000

Thunder

Midwest Region 3,500 $200 $700,000

South Region 4,000 $200 $800,000

Total 7,500 $1,500,000

Total Revenue from sales = $4,160,000 + 1,500,000 = 5,660,000

2. SONIC INC.

PRODUCTION BUDGET

FOR THE MONTH ENDING JUNE 30

UNITS RUMBLE UNITS THUNDER

Expected unit to be sold 26,000 7,500

Add: Desired Inventory June 30 500 250

Total 26,500 7,750

Less: Estimated Inventory June 1 750 300

Total units to be produced 25,750 7,450

7 0

3 years ago