Answer:
$343,995.87
Explanation:
The computation is shown below;
But before that we need to determine the present value
Given that
PMT = $925
I = 5.35% ÷ 12 = 0.4458333%
FV = 0
N = 360
The formula is given below:
= -PV(RATE;NPER;PMT;FV;TYPE)
SO, the PV is $165,647.87
Now The amount of principal still pending is
= $235,000 - $165,647.87
= $69,352.13
Now the balloon payment is
= $69,352.13 × (1 + (5.35% ÷ 12))^360
= $343,995.87
Sal’s Towing Company just purchased a new tow truck for $45,000. The company estimates a 180-month useful life with no salvage value. The annual depreciation expense is:
Answer:
3000
Explanation:
180 months is 15 years (180/12 months)
so 45000/15 years= 3000/year
Which of the following statements is true regarding the degree of operating leverage?
A. The degree of operating leverage is irrelevant to managers when trying to understand the effect of potential changes in sales volume and the impact it might have on net operating income.
B. A decline in sales for a company with a high degree of operating leverage will result a larger decline in net operating income (NOI) compared to a company with a low degree of operating leverage.
C. A company with a high degree of operating leverage has a lower proportion of fixed costs in its cost structure compared to a company with a lower degree of operating leverage.
D. A sales increase of 10% for a company with a degree of operating leverage of 4.0 will result in a 40% decrease in net operating income.
Answer:
B
Explanation:
The degree of operating leverage (DOL) measures the sensitivity of a company's operating income to changes in the demand
DOL = percentage change in operating income / percentage change in units sold
or
DOL = [Q(P - V) ] /[ Q(P - V) - F]
Q = quantity
P = price
V = variable cost
F = fixed cost
the higher the fixed cost, the higher the DOL
The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 7.6 meters Standard price of the material $ 18.80 per meter The following data pertain to a recent month's operations: Actual material purchased 3,900 meters Actual cost of material purchased $ 76,830 Actual material used in production 3,600 meters Actual output 550 units of product O84 The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month
Answer:
The answer is "[tex]\$3,510 \ U[/tex]"
Explanation:
Calculating the materials price variance:
[tex]= (AQ \times AP)\ ? \ (AQ \times SP)\\\\= \$76,830 \ ? \ (3,900 \times \$18.80) \\\\= \$76,830 \ ? \ (\$73,320) \\\\= \$3,510 \ U[/tex]
You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 25 percent in Stock T. The betas for these four stocks are 1.34, 0.88, 0.57, and 1.02, respectively. What is the portfolio beta?
Answer:
1.03
Explanation:
Beta is used to measure systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors.
Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
Stock Q = 0.35 x 1.34 = 0.469
Stock R = 0.25 X 0.88 = 0.22
Stock S = 0.15 x 0.57 = 0.0855
Stock T = 0.25 x 1.02 = 0.255
Portfolio beta = 0.469 + 0.22 + 0.0855 + 0.255 = 1.0295 = 1.03
The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $ 602,000 $ 505,000 Variable costs 230,000 299,000 Traceable fixed costs 150,500 191,000 Allocated common corporate costs 127,600 155,000 Net operating income (loss) $ 93,900 $ (140,000) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of:
Answer:
Net operating loss = $61,100
Explanation:
Particulars East division (a) West division (b) Total
Sales $602,000 $0 $602,000
Less Costs
Variable costs -$230,000 $0 -$230,000
Traceable fixed costs -$150,500 $0 -$150,500
Allocated corporate costs -$127,600 -$155,000 -$282,600
Net income (loss) $93,900 -$155,000 -$61,100
Which of the following statements best represents a benefit of group decision-
making?
a) Fewer ideas and perspectives are considered.
b) People are more likely to support a final decision.
c)
People feel less involved.
d) The process takes more time.
Please help☺️(no links plz)
Answer:
B
Explanation:
a lot of your work seems easy, what grade are you in??
The statements best represents a benefit of group decision-making is People are more likely to support a final decision. Option (b) is correct.
What do you mean by Decision?Making a decision involves choosing between two or more potential options depending on certain criteria.
Synergy and knowledge sharing are group decision-two making's main advantages. Utilizing multiple minds to generate a wide range of ideas that result in a high-quality solution is known as synergy. Information exchange aids in decision-making for the business.
Being able to reach an equitable conclusion as quickly as feasible is crucial for the group's performance because a group's performance entails taking into account each member's requirements and perspectives.
Therefore, Option (b) is correct. The statements best represents a benefit of group decision-making is People are more likely to support a final decision.
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Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________. multiple choice
Answer:
17.5%
Explanation:
depreciation = 400,000 / 5 = 80,000
return = $250,000 - %100,000 - $80,000 = 70,000
70,000 / 250,000 =
Brief Exercise 22-08 Carla Vista Company has completed all of its operating budgets. The sales budget for the year shows 50,820 units and total sales of $2,391,000. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,100. Interest is estimated to be $13,060. Income taxes are estimated to be $220,400. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.
Answer and Explanation:
The preparation of the multiple-step income statement is presented below:
Sales $2,391,000
Less: Cost of, goods sold ( 50,820 × $ 23) $1,168,860
Gross profit $1,222,140
Less: Selling and administrative expenses $303,100
Earnings before interest and taxes $919,040
Less; Interest expense $13,060
Earnings before taxes $905,980
Less: Income tax expense $220,400
Net income $685,580
What is the term for selling related products?
Answer:
cross-sell..........
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,400 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
Answer:
Period cost ⇒ $240Product cost ⇒ $560Explanation:
First find out the amount of money that pertains to the first year:
= 2,400 / 3 years
= $800
Out of the $2,400, $800 is the payment for the year.
Product cost is the portion that would go towards manufacturing operations:
= 70% * 800
= $560
Period cost is the cost that applies to the selling and administrative activities:
= 30% * 800
= $240
Suppose an economy is producing gasoline. Which of the
following will be true?
a. The marginal benefit of the 100th gallon is bigger than the marginal
benefit of the 5th gallon
b. The marginal benefit of the 100th gallon is smaller than the marginal
benefit of the 5th gallon
c. The opportunity cost of producing the 100th gallon is smaller than the
opportunity cost of the 5th gallon
The answer depends on the specific context of the economy and how the production of gasoline is being allocated.
a. The marginal benefit of the 100th gallon is bigger than the marginal benefit of the 5th gallon is not always true. The marginal benefit of a good is the additional benefit that a consumer receives from consuming one more unit of the good. As such, the marginal benefit of gasoline can vary depending on a consumer's needs and preferences. For example, if a consumer is stranded on a highway with no gas, the marginal benefit of the 5th gallon may be much higher than the marginal benefit of the 100th gallon.
b. The marginal benefit of the 100th gallon is smaller than the marginal benefit of the 5th gallon is not always true. This is similar to the point I made above. The marginal benefit of a good can depend on a consumer's needs and preferences, so it is not possible to say that the marginal benefit of the 100th gallon will always be smaller than the marginal benefit of the 5th gallon without more information about the specific context.
c. The opportunity cost of producing the 100th gallon is smaller than the opportunity cost of the 5th gallon is also not always true. Opportunity cost is the cost of foregone opportunities, i.e., the next best alternative that must be given up in order to pursue a certain action. The opportunity cost of producing gasoline can depend on various factors such as the availability of resources, the cost of production, and the demand for other goods. So, its not possible to say that the opportunity cost of producing the 100th gallon is always smaller than the opportunity cost of the 5th gallon without more information about the specific context.
Match each Zara System feature with a Toyota Production System feature. Each option (A through E) should be used exactly once, i.e., you should find a one-to-one match. - Less than 2 weeks from drawing board to store - All storefronts are designed centrally - Direct shipments from factory to store - Small collections to minimize markdowns - New designs based on sales patterns - Zara regulars look for black plastic hangars A. Pull system B. Standardized work C. Visual Management D. Inventory > need is waste E. Pathway Rule F. Just-In-Time
Answer:
Matching Zara System Features with Toyota Production System Features
Zara System feature Toyota Production
System feature
- Less than 2 weeks from drawing
board to store Pull system
- All storefronts are designed centrally Pathway Rule
- Direct shipments from factory to store Just-In-Time
- Small collections to minimize markdowns Inventory > need is waste
- New designs based on sales patterns Standardized work
- Zara regulars look for black plastic hangers Visual Management
Explanation:
A. Pull system: limited work in process; orders are placed on demand.
B. Standardized work: sequential documentation of work processes.
C. Visual Management: involves visual communication of work expectations, performance standards, or variance warnings.
D. Inventory > need is waste: This specifies inventory optimization.
E. Pathway Rule: This rule dictates a simple and direct pathway for every product or service without encouraging decision forks.
F. Just-In-Time: matching production schedules or store demands with supplies in order to reduce inventory costs, reduce wastes, and increase supply-chain efficiency.
Question 13 of 19
Which of the following is a benefit of international trade?
A. Citizens can vote in the elections of countries from which they
make purchases.
B. Consumers have access to more products.
C. Producers have international production requirements that they
must follow.
D. Governments can reduce the amount of money they spend on
international defense.
SUBMIT
Answer:
B
Explanation:
International trade is the exchange of goods and services across a countries borders
International trade can be export or import
export is sending a good to a foreign country
import is receiving goods from a foreign country
international trade increases the variety of goods available to consumers
a downside is it increases the competition faced by local producers
The buying and selling of products and services between businesses in several nations is referred to as international trade. On the global market, commodities such as consumer products, raw resources, food, and machinery are all purchased and sold.
The benefit of international trade is that consumers have access to more products. Thus, the correct answer to this question is option (B).
Through commerce, nations may obtain commodities and services that might not otherwise be accessible domestically and grow their markets. Market competition has increased as a result of global commerce.
Global trade offers individuals and nations the chance to experience products and services that are either unavailable or more expensive domestically.Political economists like Adam Smith and David Ricardo were among the first to acknowledge the significance of international commerce.However, some contend that commerce with other countries can really be detrimental to smaller countries, placing them at a disadvantage in the global arena.Therefore, The benefit of international trade is that consumers have access to more products. Thus the correct answer to this question is option (B).
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The regular selling price is $22 per unit. Costs are $16 per unit, which consists of $8 direct labor per unit, $3 direct materials per unit, $2 variable overhead per unit, and $3 fixed overhead per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $16. Assume that you have enough spare capacity to fulfill this special order. If you accept the special order in the short term, profit will: Group of answer choices decrease by $6,000 decrease by $3,000 increase by $6,000 increase by $3,000 remain the same
Answer:
decrease by $6,000
Explanation:
The computation of the profit in the case when the special order is accepted is shown below:
given that
Regular selling price = 22
Discounted selling price= 16
number of units to be sold =1000
Now
discount = 1000 ×($22 - $16)
= $6,000
Hence, profit decreases by $6000
Therefore the option first is correct
The same would be considered
According to the Florentine humanist, Leonardo Bruni, history should be studied first (after a mastery of Latin grammar) because: Group of answer choices studying the past makes it easier to understand the affairs of the current era people are doomed to repeat past mistakes understanding the past is the key to making better business decisions and gaining wealth religion is not a reliable source of wisdom and inspiration
Answer: studying the past makes it easier to understand the affairs of the current era
Explanation:
Leonardo Bruni was such an influence in the field of history that he has been known as the first modern historian for his contribution to history during the Renaissance.
Leonardo Bruni urged people to read history because he believed that in doing so, one would be able to better understand the affairs of the present because they will have a reference point to an event that occurred in the past.
Brett owns investment land located in Tucson, AZ. He exchanges it for other investment land. In which of the following locations may the other investment land be located and enable Brett to qualify for like-kind exchange treatment?
a. Mexico City
b. Mexico Toronto
c. Canada Paris
d. France
e. Only A and B
f. None of the above
Answer:
F. None of The Above
Explanation:
Real property located in the United States exchanged for foreign real property (and vice versa) does not qualify as like-kind property.
Networking is an example of this section of the marketing plan.
O marketing strategy
O marketing tactic
O competitive analysis
O market analysis
Networking is an example of A.marketing strategy section of marketing plan.
What is Network marketing?Network marketing is a type of business that relies on independent salespeople selling to other people one-on-one while frequently working from home.
Network marketing is a type of marketing where people use their own networks to expand their businesses or sell products. With the typical implementation of a training and mentoring procedure for new employees, these networks are leveraged to generate leads and recruit clients or partners.
Therefore, option A is correct.
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Consider the following list of transactions: Repay borrowing from the bank, $2,000. Pay employees' salaries of $1,500. Purchase equipment for cash, $10,000. Provide services to customers for cash, $4,500. Issue shares of common stock for cash, $5,000. Pay utilities, $1,000. Provide services to customers on account, $2,500. Sell old delivery truck for cash, $4,000. What amount would the company report for operating cash flows in the statement of cash flows
Answer:
$2,000
Explanation:
Calculation to determine What amount would the company report for operating cash flows in the statement of cash flows
Using this formula
Operating cash flows=Services to customers for cash-Employees' salaries -Utilities
Let plug in the formula
Operating cash flows= $4,500 − $1,500 − $1,000 Operating cash flows=$2,000
Therefore The Amount that the company would report for operating cash flows in the statement of cash flows is $2,000
Sweet Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $56,000, (2) 10,500 shares of Munter Ltd. common stock which cost $588,000, and (3) 6,000 shares of King Company preferred stock which cost $252,000. The Fair Value Adjustment account shows a credit of $10,600 at the end of 2020.
In 2021, Parnevik completed the following securities transactions.
1. On January 15, sold 3,240 shares of Andersonâs common stock at $23 per share less fees of $2,120.
2. On April 17, purchased 1,200 shares of Castleâs common stock at $33 per share plus fees of $1,840.
On December 31, 2021, the market prices per share of these securities were Munter $64, King $40, and Castle $23. In addition, the accounting supervisor of Parnevik told you that, even though all these securities have readily determinable fair values, Parnevik will not actively trade these securities because the top management intends to hold them for more than one year.
Required:
a. Prepare the entry for the security sale on January 15, 2021.
b. Prepare the journal entry to record the security purchase on April 17, 2021.
c. Compute the unrealized gains or losses.
Answer: See attachment
Explanation:
a. Prepare the entry for the security sale on January 15, 2021.
Jan 15, 2021:
Debit Cash $72400
Credit Gain on equipment sale $16400
Credit Equity Investment $56000
b. Prepare the journal entry to record the security purchase on April 17, 2021.
April 17, 2021:
Debit Equity Investment $41440
Credit Cash $41440
c. Compute the unrealized gains or losses.
The unrealized gain is $68760
Check the attachment for further details.
The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
a) $7.50
b) $16.25
c) $23.75
d) $60,000
e) $1.25
Answer:
a) $7.50
Explanation:
The computation of the contribution margin per unit is shown below
The contribution margin per unit is
= Selling price per unit - variable cost per unit
= $23.75 per unit - $16.25 per unit
= $7.50 per unit
By substracting the variable cost per unit from the selling price per unit we can get the contribution margin per unit
Hence, the option a is correct
Consider a market with two firms, Hewlett-Packard (HP) and Dell, that sell printers. Both companies must choose whether to charge a high price ($) or a low price ($) for their printers. These price strategies with corresponding profits are depicted in the payoff matrixLOADING... to the right. HP's profits are in red and Dell's are in blue. Suppose HP and Dell are initially at the game's Nash equilibrium. Then, HP and Dell advertise that they will match any lower price of their competitors. For example, if HP charges $, then Dell will match that price and also charge $. What effect will matching prices have on profits (relative to the Nash equilibrium without price matching)? Assuming HP and Dell can coordinate to maximize profits, HP's profit will change by $ nothing and Dell's profit will change by nothing. (Enter either positive or negative numeric responses using integers.)
Answer: Hello your question is poorly written attached below is the complete question
answer : Change in profits
= $55 , $55
Explanation:
From the Question( Nash equilibrium ) we can see that there four combination of charges
HP, Dell ($450, $450 ) : profit ( $100, $100 )
HP ,Dell ($450, $250 ) :
HP, Dell ( $250, $450 )
HP, Dell ( $250, $250 ) profit ( $45, $45 )
when lower price is adopted profit made = ( $45 , $45 )
when Higher price is adopted profit made = ( $100, $100 )
Hence The effect of matching prices on profits (relative to the Nash equilibrium without price matching)
Assuming HP and Dell coordinates
HP's profit will changes by = $100 - $45 = $55
Dell's profit will change by = $100 - $45 = $55
Why is the skills of Nurse Practitioner
going to be in such high demand in the
future?
Answer:
There are several contributory factors for greater demand for professional nurses in the future, some of which are: lower cost of the workforce and greater autonomy to assume responsibilities.
Explanation:
It is possible to see an increase in the demand for nursing professionals, and this demand will continue to increase in the future, and the reasons for this increase is the increase in the valuation of the profession, since there is still a lack of primary care doctors, being nurses the most suitable professionals to assume this position, having for this reason an increase in responsibilities, such as autonomy in the decision-making process, the possibility of prescribing medications and tests to certain patients.
There is also the fact that they provide essential care to the patient with a satisfactory cost-benefit, and these professionals are also able to provide family care and in outpatient centers, where the presence of nurses is extremely necessary. Therefore, it will be increasingly necessary for nurses to qualify and develop skills in the decision-making process.
Diamond Boot Factory normally sells their specialty boots for $26 a pair. An offer to buy 70 boots for $18 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9 and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number. Differential per pair of boots from accepting the special order is $fill in the blank 2 .
Answer:
Diamond Boot Factory
Differential income per pair of boots from accepting the special order is:
= $7.00.
Explanation:
a) Data and Calculations:
Selling price of specialty boots = $26 a pair
Variable cost per boot = $9
Special offer for 70 boots at $18 per pair
Additional stitching cost = $2
Total variable cost for the special order = $11 ($9 + $2)
Revenue from the special order = $1,260 ($18 * 70)
Variable cost for the special order 770 ($11 * 70)
Differential income = $490 ($7 * 70)
Carolina's Hats has the following sales, payroll, and property factors: North Carolina South Carolina Sales 75.03% 22.51% Payroll 68.62% 21.28% Property 78.45% 14.56% What is Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally weighted three-factor formula and South Carolina uses a double-weighted sales factor formula
Answer:
North Carolina 74.03%
South Carolina 20.22%
Explanation:
Calculation to determine Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally weighted three-factor formula and South Carolina uses a double-weighted sales factor formula
North Carolina=[(75.03 + 68.62 + 78.45)/3]
North Carolina=(222.1/3)
North Carolina 74.03 %
South Carolina = [(22.51 + 22.51 + 21.28 + 14.56)/4]
South Carolina = (80.86/4)
South Carolina= 20.22%
Therefore Carolina's Hats North and South Carolina apportionment factors will be:
North Carolina 74.03%
South Carolina 20.22%
If Andrew takes $10 from his wallet and deposits it into his checking account, what happens to M1 and M2?
(1 point)
A.
Both M1 and M2 increase.
B.
M1 decreases and M2 increases.
C.
Both M1 and M2 are unaffected.
D.
M1 is unaffected and M2 decreases
Answer:
B. M1 decreases and M2 increases
What are the common barriers to communication?
alser Corporation manufactures and sells a number of products, including a product called JYMP. Results for last year for the manufacture and sale of JYMPs are as follows: Sales $ 960,000 Less expenses: Variable production costs $ 464,000 Sales commissions 144,000 Salary of product manager 100,000 Fixed product advertising 160,000 Fixed manufacturing overhead 132,000 1,000,000 Net operating loss $ (40,000) Balser is trying to decide whether to discontinue the manufacture and sale of JYMPs. All expenses other than fixed manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. Assume that dropping Product JYMP will have no effect on other products. The annual financial advantage (disadvantage) for the company of eliminating this product should be:
Answer:
($2,000)
Explanation:
Missing word "Assume that dropping Product JYMP would result in a $90,000 increase in the contribution margin of other products"
Particulars Amount
Loss in contribution margin of JYMP ($352,000)
($960000-$464000-$144000)
Avoidable fixed costs $260,000 ($160000+$100000)
Additional contribution margin $90,000
Financial (disadvantage) ($2,000)
So, the annual financial (disadvantage) for the company of eliminating this product will be ($2,000)
Chloe and Guilherme both work at the local factory producing cars. Chloe earns $22 per hour working the day shift, and Guilherme earns $25 per hour working the night shift. Chloe and Guilherme do the same job, have the same experience, and have the same level of education. This means that the a. higher-paying job has a compensating wage differential of $25 per hour. b. higher-paying job is intrinsically more attractive than the lower-paying job. c. factory is discriminating against Chloe because she is a woman. d. higher-paying job has a compensating wage differential of $3 per hour.
Answer: d. higher-paying job has a compensating wage differential of $3 per hour.
Explanation:
Compensating wage differential is the amount paid to a worker to entice them to take a less attractive job. In this scenario, the less attractive job is working the night shift which is what Guilherme is doing.
To compensate Guilherme for taking this job, the company is paying $25 instead of the $22 it is paying Chloe. This means that the compensating wage differential is the difference which is:
= 25 - 22
= $3
To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales. The theater then gathered data over the following month to determine whether the price increase was profitable. Assume total costs to the theater are the same, whether the price of a ticket is $9 or $10.
In order for the ticket price to have been profitable over the month, the elasticity of demand for movie tickets must be______.
Demand curves become_____elastic in the long run. This means that the ticket price increase will likely be____profitable in the long run.
Answer:
RELATIVELY INELASTIC
more elastic
less
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase
If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall
In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run
If the long run, price is increased, the total quantity demanded would fall and revenue would fall
Sheffield Corp. incurred the following costs for 60000 units: Variable costs $360000 Fixed costs 392000 Sheffield has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $6000 on the order, what should the unit price be
Answer:
See below
Explanation:
Given the information above, the break even point is where company cost covers the cost used in producing goods
= $360,000 + $392,000 = $752,000 total cost / 60,000 units = $12.53 cost per unit
3,000 units ordered × $12.53 cost per unit = $37,590 + $4,200 = $41,790 / 3,000 units = $13.93
Therefore, the unit price should be $13.93