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Ad libitum [116K]
3 years ago
6

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $440 and has a unit cont

ribution margin of $175; the Adult model sells for $990 and has a unit contribution margin of $520; and the Recreational model sells for $1,140 and has a unit contribution margin of $570. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,640,000, calculate the firm's selling price per composite unit.
Business
1 answer:
Tanya [424]3 years ago
4 0

Answer:

$21,370

Explanation:

A composite unit is a set of different products grouped together in proportion to their sales mix. The unit is a basis for grouping products from different segments of an entity together with the aim of managing inventory levels, break even points, and sales.

The selling price of the composite unit can be calculated as follows:

||Bicycle model |No. of bicycles |Unit selling price |Total per composite unit

|Youth models| 5                         | 440                     |   2,200

|Adult models|   9                        | 990                     |   8,910

|Recreational models| 6              | 1,140                    |  <u>10,260</u>

                Selling price per composite unit               <u>21,370</u>

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Majestic Homes' stock traditionally provides an 7% rate of return. The company just paid a $2 a year dividend which is expected
liberstina [14]

Answer:

$52

Explanation:

Data provided as per the question

Recent dividend = $2

Market rate of return = 8%

Growth Rate = 4%

(Its expected to increase so it will be (1 + 4%) = 1.4%

The computation of price is shown below:-

Price = Recent dividend × (1 + Growth rate ) ÷ (Cost of equity - Growth rate)

= ($2 × 1.04) ÷ (0.08 - 0.04)

= $2.08 ÷ 0.04

= $52

6 0
3 years ago
After 8 years of working for a company that installed underground sprinkling systems for golf courses, Trevor was ready to ventu
BARSIC [14]

Answer:

B. two strengths and one threat

Explanation:

SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats.

SWOT analysis helps an organization assess it's competitive position and devise strategies accordingly. Such an analysis aids an enterprise in decision making and planning.

In the given case, availability of finance/capital conveys strength and so does availability of skilled installers.

The construction activity being at an all time low with residential properties being foreclosed depicts a threat.

Thus, the given scenario represents two strengths and one threat.

3 0
3 years ago
All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sal
solmaris [256]

Answer: $51,000

Explanation:

Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale.

In March therefore, the cashflow will consist of;

35% of March sales

45% of February sales

20% of January sales

= (35% * 40,000) + (45% * 60,000) + (20% * 50,000)

= 14,000 + 27,000 + 10,000

= $51,000

7 0
2 years ago
You book a hotel online, and the registration process is clear and streamlined. This is an example of a(n) ______________ proces
sveticcg [70]

Answer:

The correct word for the blank space is: automated; high value to customers.

Explanation:

Most online operations nowadays are automated which implies not having an employee behind a computer to satisfy customers' needs since they are too basic that can be all processed with the use of a server. However, the automation does not imply consumers undervalue the help obtained. Otherwise, the automation helps the process be faster which ends up representing high value for most customers.

6 0
3 years ago
Which of the following best states the main difference between a monopoly and an oligopoly?
MrMuchimi

Answer:

C:Oligopolies involve more than one company while monopolies involve only one.

Explanation:

A monopoly is a market structure with one supplier serving a very large market. In a monopoly, a single firm sells to many buyers. The product or service offered by a monopoly has no close substitutes. Customers have no choice but to buy from the only firm providing the product or service. Monopolies may result from government policy or very restrictive barriers of entry.

An oligopoly is a market structure where very few firms dominated the market . It when four or five firms control the majority market share of a very large market. There could be other firms with very little market share. Firms in an oligopoly market may sell homogeneous or differentiated products. The few firms dominating the industry collaborate to profit from the market.

8 0
3 years ago
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