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
Monica [59]
3 years ago
11

Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board

game. The game sold only 10,000 units in 2018 when 30,000 were projected. Sales for 2019 look no better. At $100 per game, it is not a hot seller. Direct costs of the board game are $56 variable cost and $100,000 fixed. John is considering several options. Option One: Cut the price to $70 and perhaps sell 15,000 units. Option Two: Cut the price to $60, reduce material costs by $10, and cut advertising by $60,000. Anticipated volume for this option is 10,000 units. Option Three: Cut the price to $80 and include a $10 mail-in rebate offer. It is anticipated that 15,000 units could be sold and only 30 percent of the rebate coupons would be redeemed.
What is the profit (loss) from Option One?
a. $1,050,000
b. $950,000
c. $110,000
d. $210,000
Business
1 answer:
Schach [20]3 years ago
4 0

Answer:

c. $110,000

Explanation:

The computation of profit (loss) from Option One is shown below:-

Profit (loss) from Option One =  Sold unit × (Cut the price - Variable cost) - Fixed cost

=  15,000 × ($70 - $56) - $100,000

= 15,000 × $14 - $100,000

= $210,000 - $100,000

= $110,000

Therefore for computing the profit (loss) from Option One we simply applied the above formula.

You might be interested in
Kennedy Enterprises has budgeted sales for the months of September and October at $ 110 comma 000 and $ 170 comma 000​, respecti
Andru [333]

Answer:

The answer is $137,600

Explanation:

Budgeted sales for September = $110,000

Budgeted sales for October = $170,000

Credit sales for September:

0.6 x $110,000

$66,000

90% will be collected the following month (October)

0.9 x $66,000

=$59,400.

Credit sales for October:

0.6 x $170,000

$102,000

10% will be collected the same month (October)

0.1 x $102,000

=$10,200

Cash sales in October

0.4 x $170,000

$68,000

The total October cash collections from​ customers is

$59,400 + $10,200 + $68,000

= $137,600

7 0
3 years ago
5. Describe an ethical dilemma related to pricing or advertising. (1 point)
Anastaziya [24]
Overpricing is a real issue
4 0
3 years ago
The ____ is an award given by the president of the united states to organizations that apply and are judged to be outstanding in
Rashid [163]
The answer to the question is the "Malcolm Baldrige National Quality Award". This is the type of award that was granted or given by the president of the United States to organizations that implement and are judged to be outstanding in specific managerial tasks such as will result in the improvement of products and services.
6 0
3 years ago
5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located ware
damaskus [11]

Answer:

Explanation:small number of centrally locates warehouses will make their products readily available in needed small quantities. While having a larger warehouse nearer to the end customers will make the product easily accessible

8 0
3 years ago
One problem in the interstate trucking industry is the number of trucks that return after making a delivery with an empty truck.
garik1379 [7]

Answer: Yield management pricing

Explanation It can be defined as the strategy in which the company studies and influence consumer behavior with the intent of maximizing profit with the limited amount of resources available.

In the given case, the truckers have limited time and they are getting extra revenue from the website. This will result in maximization of their profit.

Thus, from the above we can conclude that the right answer is option E.

5 0
3 years ago
Other questions:
  • Ethical decisions often need to be made within gray areas. for example, should an isp comply with a request from a government fo
    9·1 answer
  • Which of the following is the most popular framing system used today?
    13·1 answer
  • An investor holds two bonds, one with 5 years until maturity and the other with 20 years until maturity. Which of the following
    9·1 answer
  • Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in
    7·1 answer
  • Suppose the price of a ticket to a lenny kravitz concert is $41 and at that price, the quantity of tickets demanded is 17,000 pe
    12·1 answer
  • Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketin
    12·1 answer
  • Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,200
    14·1 answer
  • Where in an e-mail would you find information about the action required?
    13·2 answers
  • What is the difference between reliability for quantitative research and reliability for qualitative research?
    12·1 answer
  • 2. Why might it be a plus for a company to have such a high share price that trading in its stock is discouraged? What drawbacks
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!