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Anon25 [30]
2 years ago
5

intends on adding a new product line. the contribution margin ratio for the new product is 0.2. they have a target operating inc

ome of $60,000, and targeted sales volume in dollars is $480,000. then total fixed costs must be: g
Business
1 answer:
FrozenT [24]2 years ago
3 0

Answer:

The total fixed costs must be:

$36,000.

Explanation:

a) Data and Calculations:

Contribution margin ratio for the new product = 0.2

Target operating income = $60,000

Targeted sales volume in dollars = $480,000

Fixed costs = targeted sales volume in dollars multiplied by contribution margin ratio, minus target operating income

Fixed costs = ($480,000 * 0.2) - $60,000 = $36,000

b) The focus should be on the break-even formula for dollar sales with a target profit.  When the formula is reversed, the fixed costs can be calculated as shown above.

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Answer:

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You spend $5 on materials to make a scarf. You think you have added $10 of value, so you set the price to $15. Nobody buys the s
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3 years ago
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Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year.
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Answer:

Increased

Explanation:

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3 years ago
Which of the following is typically the case for companies that operate in product markets where there is relatively little comp
Igoryamba

Answer:

Which of the following is typically the case for companies that operate in product markets where there is relatively little competition from other companies?

C) higher wages and higher profits

Explanation:

A situation where different organizations are striving to sell the same product is known as competitive markets. When the number of companies selling the same product is small, then we can say that the market has little competition from other companies. A market that has little to no competition has the following qualities;

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2. Higher profits

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3. Higher wages

Companies that have higher profits as a result of bigger market shares tend to pay their employees higher wages since the available disposable income is high.

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2 years ago
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