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Tpy6a [65]
3 years ago
10

The marketing manager of TelCo., Inc. has determined that a market exists for a telephone with a sales price of $15 per unit. Th

e production manager suggests that the fixed cost of producing between 20,000 and 40,000 telephones is $65,000. Assume that Telco desires to earn a $50,000 profit from the phone sales. How much can TelCo afford to spend on variable cost per unit if production and sales equal 30,000 phones
Business
1 answer:
Korvikt [17]3 years ago
5 0

Answer: $11.17

Explanation:

Number of phones sold = 30000

Sales price = $15 per unit

We than calculate the total contribution required which will be:

= Total Fixed Cost + profit required

= $65000 + $50000

= $115,000

To calculate the variable cost per unit goes thus:

Number of phones sold = (Total Contribution Required)/(Sale Price - Variable cost per unit)

30000 = 115000/(15 - Variable cost per unit)

(15 - Variable cost per unit) = 115000/30000

(15 - Variable cost per unit) = 3.83

Variable cost per unit = 15 - 3.83 = 11.17

Variable cost per unit = $11.17

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3 years ago
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Answer:

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Explanation:

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8 0
3 years ago
Suppose that the market equilibrium price for a medical check-up is $50, in a market in which there is no health insurance. To e
never [62]

Answer:

a. Price ceiling

b. see graph

c. Increases

d. Increases, decreases

Explanation:

a. Price ceiling is the maximum price or ceiling so to speak imposed by government for a particular commodity inorder to relieve purchase burden from the consumers.

b. Take note of the price ceiling in the graph attached.

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3 years ago
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Brrunno [24]

Answer:

The company's net income for 2015 is loss $62,000 ( -$62,000)

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During 2015, Rainbow Umbrella Corp. had sales of $730,000

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The company recorded loss in 2015 the amount of $62,000 and didnot have to pay tax.

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3 years ago
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