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mezya [45]
3 years ago
12

Global Enterprises has spent $134,000 on research developing a new type of shoe. For this shoe to now be manufactured, the firm

will need to expand into an empty building that it currently owns the firm was offered $229,000 last week for that building an additional $342.000 will be required for new equipment and building improvements. Labor and material costs are estimated at $4.98 per pair of shoes. Interest expense on the loan needed to finance the production of this new shoe will be $17, 800 a year. Which one of these correctly identifies the sunk costs? A. $229,000 value of the building B. $134,000 for research C. $229,000 value of the building plus $342,000 for new equipment and improvements D. $17, 800 for interest plus $134,000 for research E. $229,000 for the building plus $134,000 for research
Business
1 answer:
RUDIKE [14]3 years ago
7 0

Answer:

Which one of these correctly identifies the sunk costs?

  • B. $134,000 for research

Explanation:

Sunk costs are costs that have already been spent and cannot be recovered by the company. In this case, only the research and development costs can be considered a sunk cost. The land has a market value and if the company decides to sell it, they would get paid for it. Additional investments or costs have not been incurred yet, so they are only planned or estimated costs.  

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A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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2 years ago
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You want to store events, members, and inventories for the New Horizon Candle Company and you need to collect the information in
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The easiest function available in MS Access to begin collecting data quickly is to use a pre-designed Template.

<h3>What is pre-designed Template in MS Access?</h3>

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