The answer is 6250 buddy.
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-From Hockey
Answer:
1)They would prefer to make shorts as contribution margin per unit is higher for shorts
Explanation:
Step 1. Given information.
- Sales price shirts is $24
- Variable costs shirts is $10
- Variable costs shorts $17
Step 2. Formulas needed to solve the exercise
Contribution margin = sales price - variable cost
Step 3. Calculation.
Contribution margin shirts = 24 - 10 = 14
Contribution margin shorts = 32 - 17 = 15
Step 4. Solution.
<h2>
Contribution margin shorts > Contribution margin shirts</h2>
<span>Contribution margin ratio is 40% or $24 per unit
Fixed expenses are $28,800
Variable expense per unit is $36
Assuming Q is quantity, sales needed to achieve monthly net equal to 10% of sales is
Sales = Variable expenses + Fixed expenses + profit
$60Q = $36Q + $28,800 + ($60Q x 10%)
$18Q = $28,800
Q = 1600 units
Monthly sales will have to be 1600 x $60 = $96,000</span>
Answer:
Accounting costs $145,000
Implicit costs $75,000
Opportunity costs $220,000
Explanation:
What her accounting cost will be during the first year of operation.
Based on the information given we were told that the annual overhead costs and operating expenses amounted to the amount of $145,000 which means that the amount of $145,000 will be the ACCOUNTING COSTS
Her IMPLICIT COSTS will be the amount of $75,000 which is the amount she earn in her current job per year.
Her OPPORTUNITY COSTS be the addition of both her Her accounting cost and implicit costs
Hence,
Opportunity cost=$145,000+$75,000
Opportunity cost=$220,000
