Which of the following people would be happy with a $10 price ceiling in this market for movie theatre popcorn bags?

Socks unlimited produces sport socks. the company has fixed expenses of $ 85 comma 000 and variable expenses of $ 1.20 per packa

aivan3 [116]

Answer:

Contribution margin per unit = Sales price per unit – Variable cost per unit

$2 - $1.20=$0.80

The contribution margin per package is $ 0.80.

Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit $85,000 + $22,000/0.80 = 133,750 packages

Contribution margin per package = $2 - $1.00 = $1.00

Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit

$100,000 + $22,000/$1= 122,000 packages

The firm will have to sell 122,000 packages to generate $22,000 of operating income. Socks unlimited would have to sell 11,750 less packages of socks to earn $22,000 of operating income. The increase in fixed costs was completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, the firm will need to sell less units in order to achieve its target profit level.

6 0

3 years ago

Areas set up to attract foreign investments by allowing the iportation of raw and intermediate materials without paying tariffs

otez555 [7]

Areas set up to attract foreign investments by allowing the importation of raw and intermediate materials without paying tariffs are called "duty-free zones".

4 0

3 years ago

8. The TS Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 10,000 12,0

Finger [1]

Answer:

Results are below.

Explanation:

<u>First, we need to determine the production budget using the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Quarter 1:

Production= 10,000 + (0.25*12,000) - 2,500

Production= 10,500

Quarter 2:

Production= 12,000 + (0.25*14,000) - 3,000

Production= 12,500

Quarter 3:

Production= 14,000 + (0.25*16,000) - 3,500

Production= 14,500

Quarter 4:

Production= 16,000 - 4,000

Production= 12,000

<u>Now, the direct material purchase budget:</u>

Purchases= production + desired ending inventory - beginning inventory

Quarter 1:

Purchase= 10,500*4 + (12,500*0.1) - 4,200

Purchase= 39,050 pounds

Quarter 2:

Purchase= 12,500*4 + (14,500*0.1) - 1,250

Purchase= 50,200 pounds

Quarter 3:

Purchase= 14,500*4 + (12,000*0.1) - 1,450

Purchase= 57,750 pounds

Quarter 4:

Purchase= 12,000*4 - 1,200

Purchase= 46,800 pounds

3 0

2 years ago

Smidt Corporation has provided the following data for its two most recent years of operation: The unit product cost under absorp

alexira [117]

Answer:

The solution to this issue can be defined as follows:

Explanation:

Please find the complete question in the attachment file.

Direct Substances 9

Direct jobs 5

Overhead output variable 5

Overhead of fixed production $14 = \frac{140000}{10000}$

The Unit cost of the item at absorption cost per year $1 = (9+5+5+14)=33$

6 0

3 years ago

In building a sustainable organization, management should strive to make the organization sustainable in three areas ? ________.

DochEvi [55]

The three areas are; "the economy, the environment, and society".

Sustainability organizations are composed of groups of individuals that plan to propel sustainability or potentially those activities of sorting out something economically. Dissimilar to numerous business associations, sustainability associations are not restricted to actualizing sustainability methodologies which furnish them with financial and social advantages accomplished through ecological duty. For these associations or organizations, sustainability can likewise be an end in itself without additional explanations.

5 0

3 years ago

Read 2 more answers