Answer:
The operating income will be:
Total contribution($2.50 x 29,000) = 72,500
Less: Fixed cost = 31,200
Operating income = 41,300
Explanation:
The contribution per unit is $2.50. This per unit contribution will be multiplied by the number of units produced and sold in order to obtain total contribution. Operating income is the excess of total contribution over fixed cost.
Answer: 20,000 lawn mowers
Explanation:
The formula for calculating the number of lawn mowers needed to reached the budgeted profit levels is:
= (Fixed costs + Budgeted profit) / Contribution margin
Contribution margin = Selling price - Variable cost
= 40 - (14 + 8 + 5)
= 40 - 27
= $13
Number of lawn-mowers required:
= (140,000 + 120,000) / 13
= 20,000 lawn mowers
Not 100% sure but I would say the second one but don't hold me to it. Go with your gut feeling.
Answer:
C) How many hours of training will I need?
It would be an example of an internal threat i believe