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Vaselesa [24]
3 years ago
8

g CVP analyses (18 points) MusicWizard, Inc. manufactures and sells trombones with the following price and cost characteristics:

Selling price per unit $125.00 Variable manufacturing cost per unit $50 Variable marketing cost per unit $25 Total fixed manufacturing costs $100,000 Total fixed administrative costs $80,000 a. How many units of products must MusicWizard sell to make an operating profit of $120,000 for the year
Business
1 answer:
Katarina [22]3 years ago
6 0

Answer:

Break-even point in units= 6,000

Explanation:

Giving the following information:

Selling price per unit $125.00

Total unitary variable cost= $75

Total fixed costs= $180,000

Desired profit= $120,000

<u>To calculate the number of units to be sold, we need to use the following formula:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (180,000 + 120,000) / (125 - 75)

Break-even point in units= 6,000

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The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb
Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

3 0
3 years ago
Ricardian equivalence means that:
kati45 [8]

Answer:

changes in private savings offset any changes in the government deficit

Explanation:

Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.

In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.

6 0
3 years ago
TUMI brand briefcases are very expensive, high-end briefcases that are generally sold in specialty luggage shops. Which of the f
myrzilka [38]

Answer:

B. Executives

Explanation:

Option E is wrong. Students do not need high-end briefcases for school or other tasks.

Option D is incorrect. Postal workers do not need any expensive briefcases to carry postal service and letters.

Option C is false. Construction workers cannot afford expensive briefcases.

Option A is not correct. Police officers have not necessary to have those briefcases.

Option B is correct. Executives often need high-end briefcases to keep essential things with them. They can also afford expensive bags.

7 0
3 years ago
Advertisers can determine how effective their media mix has been in reaching their target audience by calculating ________ of th
Viefleur [7K]
<span>Advertisers can determine how effective their media mix has been in reaching their target audience by calculating the total GRP of the advertising schedule.In advertising, a gross rating point (GRP) is a measure of the size of an advertising campaign by a specific medium or schedule.</span>
4 0
3 years ago
Gracious Ltd." is a US based company. The company plans to tap the Indian capital market through its forthcoming issue of equity
Mariana [72]

Answer:

1. Global depository receipts

2. External commercial borrowing

3. American depository receipts

4. Foreign currency convertible bonds

Explanation:

1. Global depository receipts. When a company buys shares of a foreign company, a certificate will be issued by the local depository bank, which allows for security supported by the shares purchased.

Here, Gracious ltd could raise funds by buying of shares in a company in India hence gives the company an avenue to hold shares in foreign country.

2. External commercial borrowing. These are loans granted to viable companies outside of India who are venturing into commercial businesses. Before theses loans are given, there is what is called eligibility status; which must be reviewed and thus confirm with the reserved bank of India before such loans are given.

3. American depository receipts. These are negotiable capital market instruments, issued by a bank in the United States, which shows the number of shares held by a foreign company, trading in the US capital market. A company could use this as a way of raising funds in the India capital market because it is well backed by the bank in the country where the company is.

4. Foreign currency convertible bonds. Here, a bond is issued in a different currency distinct from the issuer's local currency. What this means is that the money being sought for by the issuing company comes in a foreign currency denomination.

3 0
3 years ago
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