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UkoKoshka [18]
2 years ago
7

Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different meth

ods to determine the price of its product. Total Costs Variable Manufacturing $ 2,350,000 Variable Selling and Administrative 750,000 Plant-level Fixed Overhead 1,200,000 Fixed Selling and Administrative 600,000 Batch-level Fixed Overhead 200,000 Total Investment in Product Line 10,000,000 Expected Sales (units) 20,000 If Johnson determines price using a desired gross margin percentage of 50%, the price is:
Business
1 answer:
velikii [3]2 years ago
7 0

Answer:

$375

Explanation:

If Johnson will use the desired gross margin percentage to determine the selling price of its products, they must use the following formula:

selling price per unit = total manufacturing costs per unit / (1 - gross margin)

Total manufacturing costs = variable manufacturing costs + total fixed costs + batch level fixed overhead = $2,350,000 + $1,200,000 + $200,000  = $3,750,000

total manufacturing cost per unit = $3,750,000 / 20,000 units = $187.50

selling price per unit = $187.50 / (1 - 50%) = $187.50 / 50% = $375

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Lerok [7]

Answer: What is the best way to get his service to his target customers

Explanation:

Market research is the process of determining how viable a product will be after research has been conducted in the market. This is vital in getting opinions of customers.

Marketing mix are the marketing tools which an organization can use in order to pursue its marketing objectives.

The question that should be asked about the marketing mix placement is "What is the best way to get his service to his target customers". This is vital in knowing the best method to use in making the product available to the customers.

7 0
2 years ago
An investor is analyzing a three-unit property by looking at its ability to produce future income. What would most likely be use
Monica [59]

Complete/Correct Question:

An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?

a. Effective gross income

b. Gross income multiplier

c. Gross rent multiplier

d. Potential gross income

Answer:

c, gross rent multiplier

Explanation:

Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.

It can simply be said to be the number of years it would take a property for pay for itself through rent collection.

Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.

in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.

Cheers

6 0
2 years ago
Rita and Jose Hernandez want to assess their financial progress over the next few years. They have decided to take a reading of
Soloha48 [4]

Answer:

C. Balance sheet

Explanation:

If Rita and Jose want to assess their progress overtime and they want to read their status each year so, should prepare balance sheet for each year because balance sheet represent the organization's financial position. It tells us that what an organization had over the past years of business. All the income and losses of each year is accumulated in the balance sheet to show the net position at a point of time. Cash flow and federal income tax return are prepared to show the data specific period only.

8 0
2 years ago
Read 2 more answers
Suppose the supply curve for wool mittens is represented​ as: Q​ = 50​ + 1/2X​ - 5Y​ - 24Z. Which one of the following statement
natali 33 [55]

Answer:

C) The variable Y could be the price of the wool used to make mittens.

D) The variable X could be consumers income.

Explanation:

quantity supplied = 50 + 1/2X - 5Y  -24Z

In this equation if X increases, then the quantity supplied increases. Therefore X can either be the product's price or consumer income.

In this equation if Y or Z increase, then the quantity supplied decreases. Therefore Y or Z are production costs, either labor or materials.

4 0
2 years ago
Draiman Guitars is offering 110,000 shares of stock in an IPO by a general cash offer. The offer price is $39 per share and the
Zolol [24]

Answer:

$3,596,800

Explanation:

The computation of net proceeds to the company is shown below:-

Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost

= 110,000 × $39 × (1- 0.08) - $350,000

= 110,000 × $39 × 0.92 - $350,000

= $3,946,800 - $350,000

= $3,596,800

So, for determining the net proceeds we simply applied the above formula.

6 0
2 years ago
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