Answer:
9,800 units were produced in March
Explanation:
Ending inventory is calculated by adding Beginning inventory in production for the year and deducting any items sold during the year.
The formula for Ending Inventory is as follow
Ending Finished Goods Inventory = Beginning Finished Goods Inventory + Production in the period - Sales Made During the period
As we have the ending Inventory we need to calculate the production during March. Placing the available amounts in the formula
1,400 units = 2,100 units + Production in the period - 10,500 units
1,400 units -2,100 units + 10,500 units = Production in the period
Production in the period = 9,800 units
Answer:
Decrease; inelastic
Explanation:
Let's say the demand elasticity for Aaron's scones is |.5|. Then for a 1% increase in prices, there will be a .5% DECREASE in quantity demanded. Demand is INELASTIC.
Because demand elasticity is greater than one(1.5), it is price elastic i.e it is sensitive to price. An increase in price will lead to a decrease in quantity demanded and vice-versa.
But because the responsiveness in quantity demanded or the sensitivity to the change in price is not significant, the demand is inelastic.
Answer:
a. 22,400 units
b. 27,600 units
Explanation:
Break even point is the level of Activity where a firm neither makes a profit nor a loss.
<em>Break -even (units) = Fixed Costs / Contribution per unit</em>
<u>Contribution per unit</u>
Contribution per unit = Sales per unit <em>less</em> Variable Cost per unit
= $66 - $44
= $22
Break -even (units) = $492,800 / $22
= 22,400 units
<em>Sales units to reach a target profit = (Target Profit + Fixed Costs) / Contribution per unit</em>
= ($114,400 + $492,800) / $22
= $607,200 / $22
= 27,600 units
Answer:
$310,000
Explanation:
The computation of the projected initial cash flow is shown below:
Project's initial cash outflow= Increased inventory + increased accounts receivable - increased debt + spending amount for the expansion of the size of the showroom
= $150,000 + $35,000 - $75,000 + $200,000
= $310,000
We simply applied the above formula to find out the initial cash flow
