1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alekssandra [29.7K]
3 years ago
7

The following situations refer only to the preceding data; there is no connectionbetween the situations. Unless stated otherwise

, assume a regular selling price of $6 per unit. Choose the best answer to each question. Show your calculations.1.The pen is usually produced and sold at the rate of 240,000 units per year (an average of 20,000 per month). The selling price is $6 per unit, which yields total annual revenuesof $1,440,000. Total costs are $1,416,000, and operating income is $24,000, or $0.10 per unit. Market research estimates that unit sales could be increased by 10% if prices were cut to $5.80. Assuming the implied cost-behavior patterns continue, this action, if taken, would
Business
1 answer:
jek_recluse [69]3 years ago
6 0

Answer:

If prices are cut by $0.2 then the operating income will increase by $91,200.

Explanation:

Current Gross Profit is :

Revenue [240,000 * $6] = $1,440,000

Cost of Sales = $1,416,000

Gross Profit = $24,000

If selling price is reduced to $5.80

Revenue $5.80 * [ 240,000 * 1.10 % ] = $1,531,200

Cost of Sales $1,416,000

Gross Profit = $115,200

You might be interested in
What is considered gross proceeds paid to an attorney.
amid [387]

Answer:

$600 or more paid to an attorney in the course of your trade or business for provided legal services.

Explanation:

Hope this helps!

4 0
3 years ago
How do property rights benefit entrepreneurs?
nexus9112 [7]
Property rights can help the entrepreneurs by enabling them to purchase capital and use it as they fit. having the rights means they can use the property for martgage and raise loans,or show as an asset and acquire capital on its worth. they can sublet the property and get resources from the rent as well
7 0
3 years ago
Read 2 more answers
On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the
Arada [10]

Answer:

The correct answer is:

Debit: Account receivable $5,800

Credit: Sales revenue $5,800

Debit: Cost of goods sold $4,000

Credit: Merchandise inventory $4,000

Explanation:

On 1st May

Upon sale of inventory on credit

Debit: Account receivable $5,800

Credit: Sales revenue $5,800

On 1st May

To record cost of goods sold of merchandise inventory:

Debit: Cost of goods sold $4,000

Credit: Merchandise inventory $4,000

5 0
3 years ago
Las relaciones de trabajo saludable que existe entre jefes y empleados es un ejemplo de:
klemol [59]

Answer:

Mantenerse vivo

3 0
3 years ago
Sean works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that t
tester [92]

Answer: b. The company will be flooded with applications from individuals who are barely qualified.

Explanation:

By putting job advertisements on popular websites which are full of people looking for jobs, the company will attract people who are underqualified but apply anyway on the off chance that they are called for an interview. The company will incur costs sifting through the applications to find suitable candidates.

This will be a waste of the company's resources as those resources could have been directed at getting prospective employees that would be a better fit with the company and have the relevant qualifications. This could have been done by going to a recruiting agency for instance.

7 0
3 years ago
Other questions:
  • A clothing company wants to entice consumers to pay more for their products. To do this, the company launches an advertising cam
    8·1 answer
  • Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most bal
    13·1 answer
  • During an interview with Heidi Royce, she confessed to accepting $64,500 in kickbacks from a key supplier over the last 6 months
    11·1 answer
  • During this stage, customers are growing more aware of the product and its benefits. Choose the answer.
    9·2 answers
  • Why might Soviet economic planners have favored heavy industry over the makers of consumer goods?
    12·1 answer
  • Problems and Applications Q7
    9·1 answer
  • To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could ____ the U.S. money supply which
    5·1 answer
  • Michael is the project manager in a manufacturing company. He wants his organization to use technology for higher revenue and pr
    8·2 answers
  • On April 1, Cyclone's Co. purchases a trencher for $314,000. The machine is expected to last five years and have a salvage value
    6·1 answer
  • On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimat
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!