Answer:
The answer is 629,000.
Explanation:
- For each unit of M sold, the price is 7 and the cost is 3, so the contribution margin is 4;
- For each unit of N sold, the price is 4 and the cost is 2, so the contribution margin is 2;
- For each unit of O sold, the price is 6 and the cost is 3, so the contribution margin is 3;
- With the mix, 1 unit of sale contributes (contribution per mix) 3*M+1*N+2*O = 3*4+1*2+2*3 = 20
For covering the 340,000 of fixed costs, you have to sale 340,000/20 units. That's equal to 17,000 units.
Each unit of sales is equal to (price per mix) 7*M+4*N+6*O = 7*3+4*1+6*2 = 37. So, with 17,000 units, the total sales will be 17,000 * 37 = 629,000.
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the statement that is most likely true is that the product cost of product B will be higher under ABC than under traditional costing. This is because Activity-based costing (ABC) bases their overhead costs on the actual consumption by each while traditional costs overhead is applied based on the amount of machine hours consumed. Therefore since product B is characterized as having lots of consumption then it's product cost will be higher under ABC costing.
Answer:
The IPO Process
One of the underwriters in the IPO deal described above is.
a. J.P. Morgan Securities Inc.
Explanation:
J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada. An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities. The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.
In response to a shortage caused by the imposition of a binding price ceiling on a market,
a. price will no longer be the mechanism that rations scarce resources.
b. long lines of buyers may develop.
c. sellers could ration the good or service according to their own personal biases.
A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.
When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.
To learn more about a price ceiling, please check: brainly.com/question/24312330
Answer:
Results are below.
Explanation:
Giving the following formula:
Unitary selling price= 500,000/100,000= $5
Operating expenses= $1
Depreciation= $20,000
New selling price= 5*1.1= $5.5
Sales in units= 100,000*0.95= 95,000
COGS rate= 0.62
<u>To calculate the net income, we need to use the following structure:</u>
Sales= 5.5*95,000= 522,500
COGS= 522,500*0.62= (323,950)
Gross profit= 198,550
Operating expenses= (95,000 + 20,000)= (115,000)
Net income= 83,550
