Answer:
$458,000
Explanation:
The computation of the total production cost in case of 85,000 toys are produced
The fixed cost is
= Total manufacturing cost - total variable cost
= $360,000 - $140,000
= $220,000
And, the variable cost per unit is
= $140,000 ÷ 50,000 toys
= $2.8
So for 85,000 toys, the total production cost is
= Fixed cost + Variable cost × variable cost per unit
= $220,000 + 85,000 toys × $2.8
= $220,000 + $238,000
= $458,000
<u>Explanation</u>:
i. Limited cash on hand to make changes
It is apparent from the case that the company is experiencing a drop in the sales from the past 5 years and thus, the financial reserves will be a constraint in the accomplishment of the idea.
ii. Costumers purchase lifestyle products from people who they know and who have expertise
It is the idea that the director of the company mark always encourages direct interaction with the clients and personal selling rather than retail or online sales considering personal relation makes exposure to the experts and their advice.
iii. Meet with mark, your direct supervisor, about how to establish your credibility with the owner
Being a newbie to the company, it is a wise option to follow the instructions of the reporting authority to establish rapport with the owner of the organization.
iv. Sales have declined because customers have lower disposable income
It is also evident from the case of the financial crisis and recession in going in the market due to which the customer has a lower income to make purchases.
v. Suggesting techniques to help our sales reps become more trusted advisors
It is the time to perform a forward step by the sales reps to take the role of the advisors i.e. trusted ones for the customer in recommending the best of all.
Answer:
0.45
Explanation:
Total Asset turnover is the relationship between the total asset and the total sales. It measure the turnover generated by assets and shows how fully a company is utilizing its assets.
It is calculated as Net Sales / Average Total asset.
Average total asset is calculated as Asset at Beginning + Asset at closing / 2
Applying the formula
The total sales = $900,000 while the total asset is $2, 000,000
$900,000/$2,000,000 = 0.45
Note: The beginning and closing Asset were not given so $2,000,000 is regarded to as the average asset.
Answer:
The decision that is not relevant to Andrew is:
b. Cost of the old house.
Explanation:
a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges. It is a sunk or past cost. Past costs are not relevant because they do not make a difference in the decision or the alternative to choose. Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.
