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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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Jackie’s Coffee is a sit-down café with a wait staff that takes customers’ orders. Jackie's competitor, Johnny's Coffee Shack, s
Pani-rosa [81]

Answer:

differentiated by quality/design

Explanation:

In this scenario the two coffee shops have different strategies for sale. While Jackie's coffee is a sit down cafe with a waiter service that takes personalised orders, Johnny's coffee sells at various kiosks it owns.

These two businesses are differentiated by quality or design. Jackie's has more quality because of the personalised service provided to customers.

Jackie uses design of a sit down cafe in one location, while Johnny's business design is to sell coffee at various locations (kiosks)

3 0
2 years ago
Turquoise, Inc. is trying to decide whether to purchase identical inventory from one of the following suppliers: Supplier A Supp
melomori [17]

Answer:

Actual Cost of Supplier A:  $291.60

Actual Cost of Supplier B: $271.60

Explanation:

<u>Supplier A:</u>

Cost - 270

Shipping FOB shipping point

Purchase Discount = Invoice Price * Discount

For Supplier A, the invoice price is 270 and discount is 2/10 = 2%, so:

Purchase Discount = 270 * 0.02 = $5.4

Cost is:

270 + 27(shipping FOB point) - 5.4 = $291.60

<u>Supplier B:</u>

Cost - 280

Shipping Destination (so 0)

Purchase Discount = Invoice Price * Discount

For Supplier B, the invoice price is 280 and discount is 3%, so:

Purchase Discount = 280 * 0.03 = $8.4

Cost is:

280 - 8.4 = $271.60

8 0
2 years ago
You are 40 years old. Your investment portfolio currently consists of: (1) a savings account, with a $16,000 balance, (2) certif
murzikaleks [220]

Answer:

Option C is correct one.

<u>The investment strategy is conservative. </u>

Explanation:

This is so because most of the money is either in cash or certificates of deposits. Portfolio also consists 40% of bonds with 6% interest rate and 40% equities are also only of the employer's stock. The rate of appreciation and dividend is also very low on this stock. Hence due to all these factors we can say the strategy is conservative.

8 0
2 years ago
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,
Viktor [21]

Answer:

(D) Abby, Ben, and Clara

Explanation:

Given that each of the five citizens will share the cost of the public good equally (that is, $200 each), citizens who derive benefits greater than $200 are likely to vote in favor of an equal share of the cost since this option will result in a net benefit of the public good to them.

For instance, net benefit to Abby = $220 benefit - $200 cost = $20 net benefit.

On the other hand, citizens who derive benefits worth less than $200 are less likely to vote in favor of an equal share since an equal share will result in a net loss to them.

For instance, net loss to Matt = $120 benefit - $200 cost = $80 net loss.

Therefore, Abby ($220), Ben ($210) and Clara ($210) are likely to vote in favor of a proposal for an equal share of the cost, since the benefit they derive is greater than the cost in an equal share $200.

5 0
2 years ago
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis
zhannawk [14.2K]

Answer:

Consumer    EVA 7, 133.00

Commercial EVA 7,090.50

<u>Both are profitable</u>

<u />

Explanation:

The EVA (economic value added) is the result from subtracting the cost of capital of the investment to their divisional income. This will determinate if the division increase the company's capital or destroyed (as it return less than optimal/desired)

Consumer Income                     11,500

Investment: 35,500 + 4,200 = 39,700

EVA:     11,500 - 39,700 x 11% =  7,  133

Commercial Income                  11,925

Investment: 39,750 + 4,200 = 43,950

EVA: 11,925 - 43,950 x 11%   =  7090.5

Both division are profitable as they generate more income than the cost of the investment

4 0
1 year ago
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