Answer:
50%
Explanation:
To calculate themargin on price, you have to find the difference between the price of the good and the cost to produce it and the result is divided by the price of the product:
Margin=(2-1)/2
Margin=1/2
Margin=0.5 → 50%
According to this, your margin on price is 50%.
The margin on price for the bottled water in this scenario is $2, which is the marked up price subtracted from the cost to produce. The margin on price can be calculated by subtracting the cost to produce the bottled water from the selling price. In this case, the selling price is $2 more than the production cost of $1. So the margin on price is $2.
If you sell bottled water that costs $1 to produce and you mark each bottle up by $2, your margin on price is $2. This is because the margin on price is the difference between the selling price and the cost of the product. The margin on price can be calculated by subtracting the cost to produce the bottled water from the selling price. In this case, the selling price is $2 more than the production cost of $1. So the margin on price is $2. So if you're selling your bottled water for $3 ($1 cost + $2 markup), and it costs you $1 to produce, then your margin on price is $3 - $1 = $2.
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Answer:
Explanation:
X001 Sales volum = 3000*$20 = $60,000
X002 Sales volum = 3000*$10 = $30,000
Total $90,000
Allocated to X002 based on sales volum is 33.33% (30,000/90,000) of the 60,000, which is $20,000
Cost per unit of X002 is $6.67 ($20,000/3,000). Sells 1000 units, $6.67*1000 = $6670.
Gross profit = Revenue $10,000 - Cost $6670 = $3330 in gross profit
Answer:
$3,333
Explanation:
Using the maximum revenue achievable as cost allocation basis, we can then proceed as follows:
Knife X001 maximum achievable revenue = $20 × 3,000 = $60,000
Knife X001 achievable maximum revenue = $10 × 3,000 = $30,000
Total maximum achievable revenue = $60,000 + $30,000
Weight of Knife X001 = 60,000/90,000 = 0.67
Weight of Knife X002 = 30,000/90,000 = 0.33
Total cost allocated to Knife X001 = 0.67 × 60,000 = $40,000
Total cost allocated to Knife X002 = 0.33 × 60,000 = $30,000
Unit cost of Knife X001 = $40,000/3,000 = $13.33
Unit cost of Knife X002 = $20,000/3,000 = $6.67
Revenue from Knife X002 1,000 units sold = $10 × 1,000 = $10,000
Cost of Knife X002 1,000 units sold = $6.67 × 1,000 = $6,667
Gross profit from Knife X002 1,000 units sold = $10,000 - $10,000 – $6,667 = $3,333.
Therefore, amount of gross profit which Colicchio Corporation should recognize is $3,333 if 1,000 units of Knife X002 is sold.
Answer: Incremental revenue =360
Given:
N=600 (number of defective units)
P1=$2 (price if not rebuilt)
P2=$5 (price after rebuilt
X=.60+1.0+.80=2.4 (incremental costs)
R1=600(2)=1200
R2=600(5)-600(2.4)
R2=3000-1440
R2=1560
Incremental revenue is computed as:
R2-R1
1560-1200
360
Answer:
tactical
Explanation:
"Planning" is a very important process in order for a business to know how it is going to allocate and manage its resources to achieve its goals in a more organized way.
Among the planning options mentioned, Puma uses "tactical plans" in order to achieve its goal. Such type of plan is focused on a specific goal. In the case of Puma, it is focused on achieving $641 million in its sales target.
Tactical plans also include "when" or the time in which goals are going to be achieved. Most of the time, goals are set from less than a year to one year. In Puma's case, it's goal is by the end of the year.
Tactical plans also state the strategies that the company will use in order to achieve its goal. In order for Puma to increase its sales, it will be introducing new products, sell soccer equipment and combine different subsidiaries. These strategies will help Puma accomplish its mission.
So, this explains the answer.
Puma implemented strategic sales plans based on new product introduction, sale of soccer equipment, and subsidiary consolidation to increase its end-of-year sales target by $641 million post World Cup soccer games.
Based on the question posed, Puma adopted strategic sales plans to increase revenue by $641 million following the World Cup soccer games. These Sales plans were driven around three major strategies; Introducing new product categories, focusing on sales of soccer equipment, and consolidating several company subsidiaries. Introduction of new products would attract more customers and help increase sales. Focusing more on sale of soccer equipment during the World cup period helps to capitalize on the increased demand for such products. Lastly, consolidation of subsidiaries can minimize costs and improve efficiency, leading to an increase in sales.
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Manufacturing costs $ 448
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
Required:
Compute the following:____
1. Variable manufacturing cost per unit $217
2. Full cost per unit
3. Variable cost per unit
4. Full absorption cost per unit.
5. Prime cost per unit.
6, Conversion cost per unit.
7. Profit margin per unit
8. Contribution margin per unit
9. Gross margin per unit
Answer:
Results are below.
Explanation:
Giving the following information:
Units produced and sold= 900
Sales price (per unit) $448
Manufacturing costs:
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs:
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
a. Variable manufacturing cost= 35 + 112 + 70= $217
b. Total cost:
Total variable cost= (217 + 14)*900= 207,900
Total fixed cost= 50,400 + 67,500= 117,900
Total cost= $325,800
Total cost per unit= 325,800/900= $362
c. Total variable cost= 217 + 14= $231
d. The absorption costing method includes all costs related to production, both fixed and variable.
Absorption cost= 217 + (50,400/900)= $273
e. Prime cost= direct material + direct labor
Prime cost= 112 + 35= $147
f. Conversion cost= direct labor + unitary variable overhead
Conversion cost= 35 + 70= $105
g. Profit margin= selling price - total unitary cost
Profit margin= 448 - 362= $86
h. Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 448 - 231= $217
j. Gross margin per unit= Selling price - absorption cost per unit
Gross margin per unit= 448 - 273= $175
The computations show that Columbia Products incurs a loss per unit sold and that manufacturing costs and overheads figure significantly into the total cost per unit. The company needs to increase sales price or decrease costs to attain a positive profit margin.
Here's how to calculate the required costs:
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Answer:
True
Explanation:
Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.
If someone can achieve product maximization and cost minimization, they should be maximizing profit.
Probably the employee will be entitled to reintegration into the company. The employee probably lost her job because she exposed the discriminatory employment conditions of blacks in that company. In this case, it is possible for the employee to take legal action for retaliation against her rights, protected by Title VII.