Business, 24.01.2020 23:31 myiacoykendall

Ten toes produces sports socks. the company has fixed expenses of $ 90 comma 000 and variable expenses of $ 0.90 per package. each package sells for $ 1.80. requirement 1. compute the contribution margin per package and the contribution margin ratio. 2. find the breakeven point in units and dollars3. find the number of packages trendy toes needs to sell to earn a $26,000 operating income.

Answers: 3

Show answers

Answers

Answer from: humphreybrittany42

1. $0.9; 50%

2. 100,000; 180,000

3. 128,889

Explanation:

(1)

Contribution Margin per Unit :

= Selling Price per Unit - Variable Cost per Unit

= 1.80 - $0.90

= $0.90

Contribution Margin Ratio :

= Contribution Margin per Unit ÷ Selling Price per Unit

= $0.90 ÷ $1.80

= 0.5 or 50%

(2) Break Even Point in Units :

Break even Sales in Units :

= Fixed Expenses ÷ contribution margin per unit

= $90,000 ÷ 0.90

= 100,000

Break-even Sales in dollars :

= Fixed Expenses ÷ Contribution Margin Ratio

= $90,000 ÷ 0.5

= $180,000

(3) Number of packages required to be sold to earn $26,000 Operating Income:

Contribution required = Income + Fixed Expenses

= $26,000 + $90,000

= $116,000

Contribution per unit = 0.9

No. of units required to be sold = $116,000 ÷ 0.9

= 128,889

The number of packages to achieve an operating income of $26000 is 128,889.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

the answer is a.

by: nicholas dooley

Another question on Business

Business, 21.06.2019 18:40

Alyssa works for an engineering firm that has been hired to design and supervise the construction of a highway bridge over a major river. the bridge will be a unique design, incorporating complex designs that will likely never be duplicated. how should alyssa deal with designing and overseeing the building of the bridge?

Answers: 3

Answer

Business, 21.06.2019 19:00

Spirula trading inc sublets a part of its offices building to jade inc. for a period of ten years . where will the company disclose this information?

Answers: 3

Answer

Business, 22.06.2019 03:30

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is

Answers: 3

Answer

Business, 22.06.2019 06:30

"in my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said wim niewindt, managing director of antilles refining, n.v., of aruba. "at a price of $21 per drum, we would be paying $4.70 less than it costs us to manufacture the drums in our own plant. since we use 70,000 drums a year, that would be an annual cost savings of $329,000." antilles refining's current cost to manufacture one drum is given below (based on 70,000 drums per year):

Answers: 1

Answer

You know the right answer?

Ten toes produces sports socks. the company has fixed expenses of $ 90 comma 000 and variable expens...

Questions