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3 years ago

Assume that computers are a normal good. how will an increase in buyers' incomes impact the market for computers?

Business

1 answer:

julia-pushkina [17]3 years ago

4 0

To produce more and to commercialize it and to make it better.

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Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs o

Gnesinka [82]

Answer:

Using equation method we have,

Sales - variable cost = Fixed Cost

Let number of units be X, at break even then,

$150 X - ($60 + $18) X = ($480,000 + $240,000)

$150 X - $78 X = $720,000

$72 X = $720,000

X = $720,000/$72 = 10,000 units.

Using contribution income statement

Contribution margin per unit approach = Selling price - Variable cost = Contribution = $150 - $60 - $18 = $72 per unit

Total fixed cost = Fixed Manufacturing cost + Fixed Selling & Administrative

= $480,000 + $240,000 = $720,000

Break Even Point = $\frac{Fixed\ Cost}{Contribution\ Per\ Unit}$

= $\frac{720,000}{72} = 10,000$

Contribution margin Income Statement:

Sales value = $150 $\times$ 10,000 = $1,500,000

Less: Variable Cost

Manufacturing = $60 $\times$ 10,000 = ($600,000)

Selling Expense = $18 $\times$ 10,000 = ($180,000)

Contribution Margin = $720,000

Less: Fixed Cost

Fixed Manufacturing Cost = ($480,000)

Fixed Selling Expense = ($240,000)

Profit = $0

8 0

4 years ago

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate opera

Molodets [167]

Answer:

The correct answer is: Wholly-owned subsidiary.

Explanation:

A Wholly-owned subsidiary is a company whose common stock is 100% owned by another company. When a company owns less than 50% of another company it holds a minority interest in that company. With a wholly owned subsidiary, the parent company can control all production, management, and profits but it also shares costs and responsibilities.

6 0

3 years ago

Omestead crafts, a distributor of handmade gifts, operates out of owner emma finn's house. at the end of the current period, emm

grigory [225]

1,710 units

1,300 in inventory

+ 350 in transit

+ 80 on consignment

= 1730

- 20 damaged units

=1,710 units in period end inventory

7 0

3 years ago

Which of the following are true?

natima [27]

Answer:

III and IV

Explanation:

You don't have to be interested in something to be good at it. A job you like and accommodates your interests is not a guaranty.

8 0

3 years ago

Hooray! You won the lottery, but you have a choice of taking the $20,000 per year for the next 20 years or taking a lump settlem

Artyom0805 [142]

Answer:

The minimum value is $196,362.95

Explanation:

Giving the following information:

Cash flow= $20,000

The number of years= 20 years

Interest rate= 8%

First, we need to calculate the future value of the cash flows. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {20,000*[(1.08^20)-1]} /0.08

FV= $915,239.29

Now, we can calculate the present value. The present value is the minimum value yo accept.

PV= FV/(1+i)^n

PV= 915,239.29/ 1.08^20

PV= $196,362.95

3 0

3 years ago