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iren2701 [21]
2 years ago
8

Tracey Sales Co. has predicted the following costs for this year for 500,000 units: Manufacturing Selling and Administrative Var

iable $ 800,000 $250,000 Fixed 1,200,000 300,000 Total $2,000,000 $550,000 What is the markup on variable manufacturing costs needed to break even
Business
1 answer:
Greeley [361]2 years ago
3 0

Answer: 218.75%

Explanation:

In order to breakeven, the variable manufacturing cost would have to be the same as the fixed costs in addition to the administrative costs.

= Fixed costs + Administrative cost

= 1,200,000 + 550,000

= $1,750,000

Variable cost needs to be $1,750,000

It is currently at $800,000 so it needs to increase by:

= 1,750,000 / 800,000 * 100%

= 218.75%

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Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the
Elan Coil [88]

Answer:

Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the-spot decisions to resolve any customer complaints and issues. This is a form of _____.

a. flexibility

b. assurance

c. empowerment

d. service guarantee

The answer is C. Empowerment

Explanation:

Empowerment is the process of giving authority or power to an individual to carry out an action.  

Mitch training and  giving his serves autonomy to resolve any customer complaint  and issues is a form of empowerment. It goes to show that he has a level of trust in their ability to make decision and respond appropriately to the issues they might face when attending to customers.    

8 0
2 years ago
What is the purpose of the sherman antitrust act
tamaranim1 [39]
To destory monopolies that were using their power to harm society.
7 0
3 years ago
Read 2 more answers
How would inventions such as the smart fitting room affect retail jobs???
Lorico [155]

Answer:

ummm because it is bigger

Explanation:

4 0
3 years ago
Sunny corporation reported the following results for december: Description AmountNumber of units sold 800 unitsSelling price per
Llana [10]

Answer:

The gross margin for December is: 0.5%.

The Gross margin of an organisation or business measure the extent by which its income exceeds the costs it incurs in producing its goods and or services.  

The gross margin is measured in percentages. The higher the percentage of this margin, the higher the effectiveness of the company's management in deriving value from every dollar invested.

Explanation:

To arrive at Gross Margin, one is required to subtract the total cost of goods sold from total revenue for the period and dividing that number by revenue. That is:

Gross Margin (GM) = \frac{Revenue-Cost of Goods Sold}{Revenue}

Step I - Calculate Revenue

This is given as the total amount of goods sold which is:

800 x $500 = $400,000

Step II - Calculate Cost of Goods Sold

Cost of goods sold per unit is given as

$250 per unit.

Total Cost of Goods sold therefore is

800 x $250 = $200,000

Step III - Calculate Gross Margin

= \frac{400,000-200,000}{400,000}

= \frac{200,000}{400,000}

= \frac{1}{2} or 0.5%

Cheers!

7 0
3 years ago
Fields Cutlery, a manufacturer of gourmet knife sets, produced 20,000 sets and sold 23,000 units during the current year. Beginn
Andreyy89

Answer:

Net income under variable costing would be $429,000.

Explanation:

Under the variable costing method the most important point to understand here is that fixed cost of the previous period ( 3000 units in this case ) would not be carried over to current period. Which means that the fixed cost and cost of goods sold be less now and the profit will increase.

NET INCOME =

SALES                                   = $ 1035,000  ( 23,000 X 45 )

(-) COST OF GOODS SOLD  = ($ 391,000) ( 23000 X 17 )

 ( We have multiplied 23,000 units by 17 because now those fixed cost of $5 are not carried forward to this period)

GROSS CONTRIBUTION MARGIN  = $1035,000 - $391,000

                                                          = $644,000

(-)VARIABLE SELLING AND ADMINISTRATION EXPENSES = ($69,000)

 ( $115,000 X 60% )

CONTRIBUTION MARGIN = $644,000 - $69,000

                                           = $575,000

(LESS) FIXED COSTS          = ($146,000)   [ $100,000 + $46,000 ]

1) MANUFACTURING COST = 20,000 X $5

                                              = $100,000

2) SELLING AND ADMINISTRATION EXPENSES = $115,000 X 40%

                                                                                = $46,000

INCOME  = $575,000 - $146,000

                = $429,000

8 0
3 years ago
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