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3 years ago

Bob sells cookies only in packages of 5.

Business

1 answer:

nexus9112 [7]3 years ago

3 0

Answer:

2000 units

Explanation:

We apply the contribution margin concept in solving this.

The selling price is $5

The $1000 overhead cost represents fixed costs.

The $2.50 material cost is the variable cost.

The salary of $4000 is like profits.

Bob has to sell x items to meet the break-even and attain $4000

Break-even = Fixed cost/ contribution margin per unit

fixed cost =$1000

contribution margin = Selling price - variable cost

=$5 -$ 2.50

=$2.50

break-even in units = $1000/2.50

=400 units

To achievea $ 4000 salary , Bob has to sell 400 units + $4000/2.50

=400 unit +1600 units

=2000 units

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Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

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= $550,000 - $500,000 - $500,000 × 5%

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Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

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3 years ago

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A person can identify things that have given you trouble at work or in your personal life and look for ways to improve them by Innovation, knowledge and skills.

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The idea of knowledge is one that connote the familiarity with some kind of information and theoretical views.

Knowledge is one that can be transferred from one person to another. By having the knowledge and skills, one can be able to handle issues that pertains to us in the right way and improve our lives.

Learn more about Innovation from

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2 years ago

20. Anna reports the following income and loss: Salary$ 135,000 Income from activity A60,000 Loss from activity B( 35,000) Loss

Dmitry [639]

Answer:

Based on this information, Anna has the following suspended losses:

A) Activity B Activity C

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Explanation:

a) Data and Calculations:

Income and Loss:

Salary $ 135,000

Income from activity A 60,000

Loss from activity B ( 35,000)

Loss from activity C ( 55,000)

The loss from activity B and activity C are reduced by the income from activity A in proportion.

Thus, the income from activity A reduces the losses in B and C:

Income from activity A $60,000

Activity B loss of $35,000 is reduced by $60,000 * $35,000/$90,000 = $23,333 to $11,667 ($35,000 - $23,333)

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3 years ago

DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be

alexira [117]

Answer and Explanation:

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Total Direct labor hour required 2675 2425 2925 3175 11200

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b. The total estimated manufacturing cost and the cash disbursement is shown below:

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Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

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Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

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We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

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Option a

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