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nata0808 [166]
3 years ago
5

C93, Inc. sells three products. Income statement information for the three products for the most recent year is given below: Pro

duct A Product B Product C Selling price per unit ..... $25 $20 $18 Costs: Variable costs ............ $140,000 $156,000 $ 72,000 Advertising ............... $ 23,800 $ 26,800 $ 20,500 Rent ...................... $ 12,400 $ 12,400 $ 12,400 Supervisor's salary ....... $ 31,700 $ 32,800 $ 34,300 Property taxes ............ $ 7,000 $ 3,000 $ 4,000 Units sold ................. 7,000 13,000 10,000 The rent is allocated to the three products equally and the property taxes are allocated based on the square footage each product uses in the factory. C93, Inc. is considering eliminating Product A. If Product A is eliminated, the space currently being used to produce Product A can be rented out for $17,300 per year. Calculate the number of units of Product A that would need to be sold next year in order for C93, Inc. to be economically indifferent between dropping and keeping Product A.
Business
1 answer:
aleksandrvk [35]3 years ago
5 0

Answer:

14,560 units.

Explanation:

Variable costs for Product A = $140,000 / 7,000 units

Variable costs for Product A = $20

<u>Avoidable costs for Product A:</u>

Advertising                                   $23,800

Rent                                              $17,300

Supervisor's salary                       <u>$31,700</u>

Avoidable costs for Product A    <u>$72,800</u>

<u />

Contribution margin per unit = $25 - $20 = $5

Economically indifferent units = Avoidable costs for Product A/Contribution margin per unit

Economically indifferent units = $72,800 / $5

Economically indifferent units = 14,560 units

So therefore, the number of units of Product A that would need to be sold next year is 14,560 units.

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What countries represent the largest global business opportunities for the next decade? What factors determine the size of the o
EastWind [94]
China, India and Brazil are some of the largest growing global businesses. These come from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages.
4 0
3 years ago
Mapleview Inc. has the following budgeted sales:
Irina18 [472]

Answer:

Total cash= $265,000

Explanation:

Giving the following information:

Sales:

July $200,000

August $300,000

September $250,000.

40% of the sales are for cash, and 60 percent are on credit. For the credit sales, 50 percent are collected in the month of sale and 50 percent the next month.

We need to determine the cash collection for September:

Cash collection:

Sales in cash September= 250,000*0.4= 100,000

Sales on account September= (250,000*0.6)*0.5= 75,000

Sales on account August= (300,000*0.6)*.5= 90,000

Total cash= $265,000

7 0
3 years ago
If airlines do not change their prices how else might they try to compete with each other?
WARRIOR [948]
<h3>Hello there!</h3>

Your question asks how airlines compete with each other if they don't change their prices.

<h3>Answer: By giving the customers better service.</h3>

If an airline company doesn't want to change their prices for a flight, but still want to compete with other airlines, then they would try to compete by providing more and better services to the customers.

When an airline competes with providing better services, it attracts customers to choose them because customers could feel more comfortable on their flight.

Airlines can compete by providing:

  • Wi-Fi
  • More space
  • Entertainment
  • Food

Airlines now a days are starting to provide Wi-Fi services to its customers in the aircraft. Since we live in a world that needs Wi-Fi for electronical things, airlines are providing Wi-Fi in order to have people choose their airline for their flight. Providing Wi-Fi to its customers will not only bring in more customers, but can keep people busy on the flight, having no disruptions since people would be focused on their personal stuff on their laptop/phone/etc.

Airlines are also competing by providing more space in their cabin. People that go on flights feel very cramped in their seat; having little leg room between their legs and the seat in front of them. Airlines are making more leg room and space for the customers in order for them to enjoy the flight. This is luring in customers because customers want to feel comfortable, and space is the main thing that customers want in their flights.

Airlines are also competing by providing entertainment. The entertainment part of an aircraft is in the little screen that would be in front of the customer, behind the seat in front of them. This entertainment service would entertain people on their flights. This entertainment service could provide movies, world map, and etc. Flights are boring, and so airlines are trying to make the flights more entertaining.

Airlines are also competing by providing better food. Who doesn't get hungry on the plane? If airlines are giving terrible food, why would someone want to choose that airline again? Airlines are providing better food in order for customers to choose them as their airline. Food is a major thing that lures people into different airlines. This is something that airlines are trying to improve all the time.

To sum it all up, these are just some of the ways airlines compete with each other, without having to change the price of their flights.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
5 0
3 years ago
A not-for-profit voluntary health and welfare organization should report a contribution for the construction of a new building a
Brilliant_brown [7]

Answer:

The correct answer is letter "C": financing activities.

Explanation:

Cash flow refers to transferring cash to, or from, an account, a company, or an investment. In the cash flow statement, there is a section called "<em>Financing Activities</em>" where all the net flow of cash to fund the entity is recorded. Those activities imply the <em>firm's equity, debt, </em>and <em>dividends</em>.

7 0
3 years ago
From the following particulars of Purple New Co., prepare the bank reconciliation statement as on May 31, 2016.
juin [17]

Answer:

Explanation:

Bank reconciliation statement:

Cash account balance $3950

Less: Deposit in transit ($900)

Less: Bank service charges ($75)

Add: Interest added to the checking account by the bank $150

Add: Checks outstanding $960

Less: Check drawn incorrectly charged by the bank ($85) [150-65]

Adjusted balance $4,000

5 0
3 years ago
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