Which are examples of long-term goals? Select all that apply.

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago

Although you were not fortunate enough to get Chipper's Golf Resort stock [ticker symbol: CHPR] as an IPO, you are still thinkin

Sever21 [200]

Answer:

The answer is: A) the secondary market; prospectus

Explanation:

Secondary market refers to the stock exchange where investors buy and sell securities that they already possess. The secondary market is what most people think about when they refer to a stock market. A primary market only sells stocks that are being issued for the first time, like an IPO.

The prospectus of a company is a legal document provided by public companies or mutual funds that include information about the company's strategies, financial statements and top management's background.

5 0

3 years ago

Suppose that Juan Carlos is filling out a survey that he received in the mail. The survey would do if the price of his favorite

GaryK [48]

Answer:

A. The definition of a market in determining the price elasticity of demand.

Explanation:

Price elasticity of demand is the height of responsiveness of demand or purchase to changes in price. It shows how consumers or buyers would react to the demand for a product when the price of their favourite brand increases.

Reaction of consumers in the market place is one of the determinants of price elasticity of demand. It tells how buyers will switch to different brand of products if the price of their favourite brand increases. It also shows how consumers will adjust their spending abilities if the price of all the brands are increased at the same time.

Alternatively, consumers would demand for the brand that falls within the limit of their spending.

4 0

3 years ago

For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and th

Serhud [2]

Answer:

1. Property taxes, factory - Fixed cost and an indirect manufacturing cost

2. Boxes used for packaging detergent produced by the company - Variable and direct manufacturing cost.

3. Salespersons' commissions - Variable and selling cost.

4. Supervisor's salary, factory - Fixed and Indirect manufacturing cost.

5. Depreciation, executive autos. - Fixed and administrative cost.

6. Wages of workers assembling computers - Variable and direct manufacturing cost.

7. Insurance, finished goods warehouses - Fixed and Selling cost.

8. Lubricants for production equipment. - Variable and indirect manufacturing cost.

9. Advertising costs - Fixed and Selling cost.

10. Microchips used in producing calculators. - Variable and direct manufacturing cost.

11 Shipping costs on merchandise sold - Variable and Selling cost.

12. Magazine subscriptions, factory lunchroom - Fixed and administrative cost.

Explanation:

The cost which is affected by the production of units is known as variable cost. The cost which does not vary with the units produced is fixed cost.

The costs which are related to selling and storage of the finished goods is selling cost.

The cost which is not affected by units produced and is related to office premises and controlling an organization is administrative cost.

The cost which is associated with the production of units and is incurred to convert raw material into finished goods is manufacturing cost.

The manufacturing cost which is directly affected by the units produced is direct cost and the manufacturing cost which is not affected by the units produced is indirect cost .

8 0

4 years ago

Sandra is considering multiple job offers. She has three school-aged children whom she must drive to after school activities. Wh

Marina86 [1]

C WORK HOURSSSSSSsssssss

8 0

3 years ago

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