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You have recently hired an equipment operator for $30.00 per hour. To determine his/her billing rate you simply multiply $30.00 by 1.20 to ensure you get a 20% profit margin. Is this process correct?
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- Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?You have developed the following estimates for procuring an item for your manufacturing operations:? is 3,600 units yearly (10 units per day)? is ₱25 per item? is ₱35 per order? is 25% annuallyThe following two (2) options are available for you:Option 1: the supplier can supply all items at once.Option 2: The supplier can supply 15 items per day.Based on the information you have, which of the above options would you prefer?
- How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit of $54000, variable costs are 20% and monthly fixted cost of $18000 and what is the margin of safety percentage of target sales?Plank, the new owner of the vehicle accessory shop, is considering buying sets of winter tyres for $ 299 per set and selling them at $ 520 each. Fixed costs related to this operation amount to $ 3250 per month. It is expected that 18 sets per month could be sold. How much profit will Plank make each month? Hint: use the contribution margin approach.Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per month. How many units must Mackler sell to break even? Please show the formula you used and show your work in the space provided.
- The cost of a window air conditioner was $340 and had a markup on cost percentage of 50%. During a spring promotion, the selling price was reduced by $100. The required overheads and operatings profit for the air conditioner are 15% and 35% of cost respectively. For full marks your answers should be ropunded to the nearest cent. What is the regular selling price?What is the profit at the sale price ?What is the break - even price?Planck, the new owner of the vehicle accessory shop, is considering buying sets of winter tyres for $ 299 per set and selling each set at $ 520. Fixed costs related to this operation amount to $ 3250 per month. It is expected that 18 sets per month could be sold. How much profit will Planck make each month? Round to the nearest one. Hint: use the contribution margin approach.An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity? Based on your answer above, how many orders will be placed per year using the EOQ? Determine the ordering, handling, and total inventory costs for the EOQ. Determine the effective annualized cost of financing for the following credit terms, assuming that (1) discounts are not taken, (2) accounts are paid at the end of the credit period, and (3) use 365=day year: a. 1/10, n/30; b. 3/10, n/30; c. 3/10, n/60; d. 2/10, n/90
- You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. You currently have 100 customers and are operating at 90% capacity. Your current labor rate is $100 per hour. What would the increase, or decrease, in sales be if you could attract the extra 10 percent of business at a reduced labor rate of 10% ? Assume you will bill each customer for one hour of labor each. Hint: If your answer to question #12 was yes, you will have a positive number. If your answer to question #12 was no, you will have a negative number. Assume 100% capacity is 111 customers.A manufacturer of calculators has a fixed cost of $24,000 per month. Suppose that the marginal cost of producing a calculator is $40, and the calculators sell for $115 each. How many calculators must the company produce and sell per month to break-even? Calculate the answer by read surrounding text. Round to the nearest whole number of calculators.How many customers and what revenue will the resturant need each month to break even? The monthly costs consist of rent of $10,000, interest of $3,500, fixed labor costs of $12,000, other variable costs are 27% of revenue. The guest check average is $14.50.