A clothing merchant purchases a shipment of clothes for $38,000.00 with discounts of 11% and 5%. He sells it to a customer at a price which includes 22% profit on selling price and overhead expenses of 23% on selling price. a. How much did it cost him to purchase the container of clothes? b. What was the selling price of the container of clothes? c. Calculate the break-even selling price

A clothing merchant purchases a shipment of clothes for $38,000.00 with discounts of 11% and 5%. He sells it to a customer at a price which includes 22% profit on selling price and overhead expenses of 23% on selling price. a. How much did it cost him to purchase the container of clothes? b. What was the selling price of the container of clothes? c. Calculate the break-even selling price

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.1IP

See similar textbooks

Similar questions

. The cost of a window air conditioner was $350. During a spring promotion, the selling price was reduced by $150. The required overhead expenses and operating profit for the air conditioner are 25% and 15% of selling price respectively. a) What is the regular selling price? b) What is the break-even price? c) What is the profit (loss) at the sale price? 3. Frigid Boards purchases one of its snowboards for $395 less a retail trade discount of 15% and a loyalty discount of 4%. Its markup on selling price percentage on all snowboards is 21%. At the end of the season, any leftover snowboards are marked down by 10%. What is the sale price of snowboard?
ACME Coal paid $5,000 to lease a railcar from the Reading Railroad. Under the terms of the lease, $1,000 of this payment is refundable if the railcar is returned within two days of signing the lease. 1. Upon signing the lease and paying $5,000, how large are ACME’s fixed costs? Its sunk costs? 2. One day after signing the lease, ACME realizes that it has no use for the railcar. A farmer has a bumper crop of corn and has offered to sublease the railcar from ACME at a price of $4,500. Should ACME accept the farmer’s offer?
(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…
A company produces a special new type of TV. The company has fixed costs of $451,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand. If the company sets the price at $3800, how much profit can it earn? It can expect to earn/lose $enter your response here. (Round answer to nearest dollar.)
Please help 1- Joes explicit costs are ….. ' 2- Joes implicit costs are…. 3- Joes economic profit in the first year is ….. dollars. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.
Firm A provides commercial cleaning services. The price ? it charges is a linear function of the area? to be cleaned: ? = ?? + ? for some numbers ? and ?. It is known that the price is $1300 if the area is 500m 2,1and the price is $2300 if the area is 1000m 2. What are ? and ?
The revenue for a product is R(x) = −0.004x^2 + 21x − 6200 and thecost is C(x) = 0.02x + 38, for x units produced and sold.Should output be increased or decreased to generate a higher profit?
Your college newspaper, The Collegiate Investigator, has fixed production costs of $70 per edition, and marginal printing and distribution costs of 40¢/copy. The Collegiate Investigator sells for 50¢/copy.a) Write down the associated cost, revenue, and profit functions.b) What profit (or loss) results from the sale of 500 copies of The Collegiate Investigator?c) How many copies should be sold in order to break even?
Bill is a small farmer. You ask Bill how he decides whether to plant beans or corn. He claims the cost to produce either crop is the same; he determines which crop by choosing the one with the higher price. Does this make sense? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Accounting profit is total revenue less by Select one: a) Implicit costs only b) Implicit and Explicit costs c) None of the answers are correct d) Oppurtunity Costs e) Explicit cost only
You quit your job as an analyst making $40,000. You then take you $500,000 in savings and open a Mighty Taco restaurant. You work roughly the same hours as before and make $60,000 per year from the restaurant. Assume the interest rate on government treasury notes is 5%. Calculate the economic profit or loss from your move in year 1. (INCLUDE a negative sign if it’s a loss)
ABC Company is the manufacturer of a low-noise air-purification system. Its current capacity is 10,000 units/month, but ABC received orders totaling 9,000 units each month. Currently, ABC sells its system at a price of $200 per unit, its fixed cost is $500,000/month, and its variable cost is $100/unit. Note that currently, half of ABC’s variable cost is materials, and the other half is labor cost (wages for workers). ABC wants to consider cutting its price by 10% to stimulate demand. If ABC expands its capacity, it will have to lease additional manufacturing machines, each of which will cost $20,000/month to lease and can add 1000 units to ABC’s capacity. All existing workers are already working full-time. So, if ABC expands production, ABC has to either pay existing employees for overtime (1.5 times the regular wages) or hire new workers, who are expected to be paid 90% of the hourly wage of existing workers but produce only 75% of the hourly output of existing workers. (a) What is…