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Firdavs [7]
2 years ago
11

Home Appliances Co. wants to introduce a new digital display, laser driven iron to the market. The estimated unit sales price is

$85. The required investment is $3,500,000. Unit sales are expected to be 300,000 and the minimum required rate of return on all investments is 15%. Compute the target cost per iron.
Business
1 answer:
malfutka [58]2 years ago
5 0

Answer:

<u>The target cost per iron= $83.25</u>

Explanation:

Profit Required = Required Investment * required rate of return

= $ 3,500,000*15%

= $ 525,000

Sales= 300000*85=$25,500,000.00

Less: profit required=$525,000.00

Cost= Sales- Profit

Cost=24,975,000.00

Per Unit Target Cost = Total Cost / Total Units

= $ 24,975,000/ 300,000

= $ 83.25

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Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolveri
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Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

Cr. Rent revenue 2,000

2 Dr. Insurance expense 6,600

Cr. Prepaid insurance 6,600

3 Dr Salaries expense 3,000

Cr Salaries payable 3,000

4 Dr Interest expense 250

Cr Interest payable 250

5 Dr Supplies expense 3,900

Cr Supplies. 3900

N. B:

Rent revenue for December was calculated as:

= $4,000 x 1/2

= $2,000

Insurance expense for the current year was calculated as:

= $13,200 x 6/12

= $6,600

Interest expense:

= $15,000 x 10% x 2/12

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Supplies expense:

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3 0
2 years ago
A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales
Svetradugi [14.3K]

Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

= Salaries + commission + Advertising

where,

Salaries = Expected salaries × number of months in one quarter

             = $5,000 × $3

             = $15,000

Commission = (January sales +  February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

= Expected advertising expenses × number of months in one quarter

= $600 × 3 months

= $1,800

Now put these values to the above formula

So, the value would be equal to

= $15,000 + $9,000 + $1,800

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3 0
2 years ago
MaryJane’s Bakery manufactures and sells a variety of baked goods. The selling price per dozen of chocolate glazed dunuts is $8.
Roman55 [17]

Answer:

$4.20

Explanation:

4 0
2 years ago
Which of the following statements is true of the scientific method?
nevsk [136]

Answer:

The answer is: C) The scientific method may not reveal a "true" model of the world.

Explanation:

When economists and scientists use the scientific method they are trying to develop models of the world and then test them with data. Past data is used to try to predict future economic behavior. That doesn´t mean that those models are 100% accurate and true, but rather that they might (or not) apply to specific situations.

Microeconomics relies on the use of the scientific method and econometrics, while the scientific method is not applicable in macroeconomics.

3 0
2 years ago
Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Softa [21]

Answer:

B. False

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Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0
2 years ago
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