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Solnce55 [7]
3 years ago
10

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to

earn $35,000 pretax income, how many units must be sold? A. 6,500 B. 6,000 C. 500 D. 5,000 E. 5,500
Business
1 answer:
ruslelena [56]3 years ago
6 0

Answer:

A 6,500

Explanation:

The number of units to be sold is calculated as;

= (Pretax income + Fixed costs) ÷ Contribution margin

Given that;

Pretax income = $35,000

Fixed costs = $420,000

Contribution margin

= Selling price per unit - Variable cost per unit

= $200 - $130

= $70

= ($35,000 + $420,000) ÷ $70

= 6,500 units

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umka2103 [35]

Answer:

Allocated overhead= $30,000

Explanation:

<h3>First, we need to calculate the plantwide predetermined overhead rate:</h3>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 80,000/16,000

Predetermined manufacturing overhead rate= $5 per <u>direct labor hour</u>

<u>Now, we can allocate overhead to Small Monitors:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Small Monitors:

Allocated overhead= 5*6,000= $30,000

5 0
3 years ago
Using all of their resources, Company A can make either 100 computers or 50 cell phones while Company B can make either 200 comp
KIM [24]

Answer:

company B

company B

Explanation:

A company has comparative advantage in production if it produces at a lower opportunity cost when compared to other companies.

Opportunity cost of producing cell phones

company A = 100 / 50 = 2

company B = 200 / 150 = 1.3

The opportunity cost of company B is lower than that of company A. Company B has a comparative advantage in the production of cell phones

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Company B produces 200 computers while company A produces 100 computer. Company B has an absolute advantage in the production of computers

4 0
3 years ago
You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You
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Answer:

Explanation:

What 22

6 0
3 years ago
A financial institution near you advertises itself as especially oriented towards educators and teachers. What is the category t
sergij07 [2.7K]

Answer:

Credit union.

Explanation:

A credit union can be defined as a non-profit making financial cooperative that is typically controlled by its members (employees, church groups, labour unions etc) and it is saddled with the responsibility of providing financial services like the traditional banks to employees such as teachers, educators, nurses, etc.

Generally, the profit made from the amount of money that is being deposited by the members of a credit union are usually returned to the members as a form of better interest rates. Some examples of credit unions are SchoolsFirst Credit Union, New York University Federal Credit Union, Consumers Credit Union, etc.

In this scenario, a financial institution advertises itself as especially oriented towards educators and teachers. Thus, the category this institution would most likely fall under is a credit union because it's not run like businesses that is after making profit i.e it's a non-profit business established to assist employees with their finances.

6 0
3 years ago
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Dmitry_Shevchenko [17]

Answer:

B. Search engine

Explanation:

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4 0
3 years ago
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