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
alexira [117]
3 years ago
9

Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.5

0 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $5,040. Donnelly's expectations for the coming year include the following: (CMA adapted) The selling price that would maintain the same contribution margin ratio as last year is:
Business
1 answer:
Burka [1]3 years ago
7 0

Answer:

$10.00

Explanation:

Calculation to determine The selling price that would maintain the same contribution margin ratio as last year is

Based on the information given since variable cost increased by one-third (1/3) which means that the selling price amount has to as well increase by the same one-third (1/3) in order to maintain the same contribution margin ratio as last year.

Hence:

Selling price =$7.50+(1/3*$7.50)

Selling price=$7.50+$2.50

Selling price=$10.00

Therefore The selling price that would maintain the same contribution margin ratio as last year is $10.00

You might be interested in
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilib
AfilCa [17]

Answer:

The correct answer is  D. does not increase the amount of the product that consumers buy because it creates a shortage.

Explanation:

If a market is defined by the following demand and supply functions. The balance or price that reflects the coincidence in valuation of the good of consumers and producers, would occur at the intersection between both functions.

When the State intends to supplant market activity in the allocation of goods and services, it can do so through a policy of maximum and minimum prices.

If it is considered appropriate that a given price is less accessible than what would take place in the market, it will establish a maximum price, above which no company can sell. When this occurs, we can graphically appreciate how at that price the quantity demanded is greater than that offered, thus generating an excess of demand that leads to the shortage of the good. In this context, some mechanism will be developed that allows rationing the offer (long lines, different criteria such as age, economic level, etc.) This being, land paid for the appearance of the “black market”.

Another type of price control is the establishment of a minimum price. This system has been used frequently in agricultural markets, when the State has sought to prevent farmers' income from drastically reducing.

When a minimum price is established higher than what would take place in the market, the quantity offered exceeds the defendant, thus producing an excess supply. This excess supply will lead to an accumulation of production that will generate great inefficiency.

5 0
3 years ago
Company sales reports are often utilized as part of a company’s marketing research activities and can provide insight about whic
Alex787 [66]

Answer:

The answer is: C) internal secondary

Explanation:

Internal secondary data is data that was collected by other members of your organization (through different activities) and is stored inside the organization.  In this case the sales reports (completed by the sales department) are used by a different department in the company (marketing).  

8 0
4 years ago
Gaming Inc. is a popular video game console manufacturer with almost 150 video games to its credit. It has recently launched a s
Westkost [7]

Answer:

Niche Marketing

Explanation:

Niche marketing is a form of marketing/advertising strategy whereby the producer or organization focuses on a particular group or type of target market. It is a marketing strategy that involves focusing on a small segment of a larger market. It is aimed at solving the needs of a unique target market. In this case, the target market is kids or young customers belonging to the age group of between 5 - 12 years of age.

8 0
3 years ago
You sell short 600 shares of Microsoft that are currently selling at $25 per share. You post the 40% margin required on the shor
svet-max [94.6K]

Answer: 10%

Explanation:

Short sale of 600 shares at $25 will yield:

= 600 * 25

= $15,000

You posted 40% of this:

= 40% * 15,000

= $6,000

The profit in a year seeing as the price fell is:

= (25 - 24) * 600 shares

= $600

Rate of return is:

= Profit / Margin posted

= 600 / 6,000 * 100%

= 10%

8 0
3 years ago
A computer assembly firm purchases computer parts at $230 per computer. The
zysi [14]

Answer:

Maybe 60%

Explanation:

8 0
3 years ago
Other questions:
  • Which is the purpose of a budget?
    5·2 answers
  • Jamie is saving for a trip to Europe. She has an existing savings account that earns 2 percent annual interest and has a current
    7·1 answer
  • Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation: Number of
    10·1 answer
  • Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During Jun
    9·1 answer
  • In order to use evidence discovered during an inventory search, a police department must have a ________ criteria for doing inve
    14·1 answer
  • When a subsidy is paid to potato​ growers, the market equilibrium quantity of potatoes​ ______ and market price​ ______. A. ​dec
    11·1 answer
  • Assume the following for the town of Boone: it has a total population of 40,000 people, of which 1,000 are under 16 years of age
    10·1 answer
  • The personality and unique character of a group is best known as its ________ and includes the group's assumptions, values, beli
    13·1 answer
  • Language is the most complex challenge global marketers face.<br><br> True<br> False
    13·1 answer
  • It about reading and math and geometry
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!