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
harkovskaia [24]
3 years ago
6

Fixed vs variable cost preference. bates operates a kiosk at a local mall, selling duck calls for $30 each. the variable cost to

make a duck call is $18. a new mall is opening where bates wants to locate a new kiosk. the mall operator offers the following two options for bates: 1. paying a fixed rent of $15,000 a month, or: 2. paying a fixed rent of $9,000 per month plus 10% of revenue earned from each duck call, the amount of monthly sales (in units) at which bates would be indifferent as to which plan to select is: a) 1,900 b) 2,000 c) 1,500 d) 1,600​
Business
1 answer:
DochEvi [55]3 years ago
8 0

Answer:

b) 2,000

Explanation:

sales price = $30

10% from each sale = $3

the amount of rent paid as a percentage of sales = $15,000 - $9,000 = $6,000

the indifference point in units = $6,000 / 10% revenue margin = $6,000 / $3 = 2,000 units

If Bates sells less than 2,000 units, then he should prefer option 2, but if he sells more than 2,000 units, then option 1 is better for him.

You might be interested in
Data concerning Farm Corporation's single product appear below: Selling price per unit $ 320.00 Variable expense per unit $ 76.8
lara [203]

Answer:

$224,000

Explanation:

Contribution margin = Selling price - Variable cost

= $320 - $76.8

= $243.2

Contribution margin ratio = Contribution margin / Sales

= $243.2 / $320

= $0.76 × 100

= 76%

Break even point = Fixed cost / Contribution margin ratio

= $170,240 / 76%

= $224,000

7 0
3 years ago
The __________ method provides an alternative approach for allocating factory overhead that uses multiple factory overhead rates
Karo-lina-s [1.5K]

The plantwide allocation is a method, which involves the alternatives to the approach for the allocation of factory overheads, and also uses factory overheads based on different activities.

<h3>What is plantwide allocation?</h3>

The plantwide allocation rate is a method that uses an approach to compile all the required overhead costs of a business, and thus also involves application of one rate for one activity in an organization.

Hence, the significance of plantwide allocation is as aforementioned.

Learn more about plantwide allocation here:

brainly.com/question/15090267

#SPJ1

4 0
2 years ago
Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market
Salsk061 [2.6K]

Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

8 0
3 years ago
Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
Tamiku [17]

Answer:

The answer is: B) management by objectives (MBO)

Explanation:

Management by objectives (MBO) is a strategic management model developed by Peter Drucker. Drucker's main principle stated that MBO was: to determine joint objectives and to provide feedback on the results.

According to this model, when employees participate in setting goals and action plans they will feel encouraged to participate and commit to the organization's goals. By jointly (employees + management) setting challenging but attainable objectives, employees felt empowered and motivated to fulfill those goals.

7 0
3 years ago
The raw materials or reactants of the photosynthetic process include
Firdavs [7]
<h3><u>Full Question:</u></h3>

The raw materials or reactants of the photosynthetic process include

A. glucose and oxygen.

B. carbon dioxide and glucose.

C. carbon dioxide and water.

D. carbon dioxide and oxygen.

The raw materials or reactants of the photosynthetic process include carbon dioxide and water.

<h3><u>Explanation:</u></h3>

The process by which the light energy obtained from the sun is converted into chemical energy is photosynthesis. This process takes place in all plants having chloroplast pigments. The raw materials of this process is water and carbon dioxide.  

In the photosynthesis process water, carbon dioxide and minerals will be converted into oxygen and some organic compounds that are filled with energy. This acts as an energy source for the plants to survive. This process will not be possible in the absence of the chloroplast pigment.

3 0
3 years ago
Other questions:
  • Midpark Co.purchased a 30% interest in Cycling Pros, Inc. on December 31, 2020 for $1,000,000. On that date, Cycling Pros' net a
    14·1 answer
  • Noreen is extremely happy to be working at QBiz. They are a socially conscious, community-focused company. Noreen knows that her
    8·1 answer
  • Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this
    6·1 answer
  • A contingency reserve is money assigned to the project and allocated for identified risks for which contingent responses are dev
    6·1 answer
  • Suppose that when a student is caught lying about completing his homework, he is not allowed to participate in afternoon recess
    15·1 answer
  • The evaluations of financial information through analysis of plausible relationships among financial and nonfinancial data is th
    10·1 answer
  • ________ are combating competitive pressures by providing better value with private-label merchandise; adding new value-added se
    11·1 answer
  • Delaney Inc. has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the c
    11·1 answer
  • Explain about New product pricing strategy
    13·1 answer
  • Taxes represent __________ of the business. Multiple Choice an equity liability a cash inflow a cash outflow an accounts receiva
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!