Sheridan Company had $247,500 of net income in 2019 when the selling price per unit was $156, the variable costs per unit were $96, and the fixed costs were $574,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Sheridan Company is under pressure from stockholders to increase net income by $41,100 in 2020. (a) Compute the number of units sold in 2019. units (b) Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level. units (c) Assume that Sheridan Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level? New selling price $
Solved
Show answers
More tips
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- D Dating, Love, Relationships How Long Can Love Last?...
- A Auto and Moto Mastering One-Movement Parking: All You Need to Know...
- C Computers and Internet How to Properly Order Clothing from International Online Stores...
- H Health and Medicine Headache: A Comprehensive Guide to Treatment...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- A Auto and Moto Discovering the Leader: What is the Most Expensive Car in the World?...
- F Food and Cooking How to Quickly Put your Child to Sleep?...
- C Computers and Internet How to Create a Website for Free and Easy?...
- F Family and Home Parquet or laminate, which is better?...
Answers on questions: Business
- M Mathematics 1 - 3/10 as a fraction...
- M Mathematics If x% of 75 = 9, then the value of x is...
- M Mathematics Please help me if you can...
- B Business Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December. On Company...
Ответ:
(a) 13700 (b) 14385 (c) $159
Explanation:
(a) Given the selling price, variable cost and fixed cost simulate a profit and loss statement. We know the net income is 247500, add the fixed cost of 574500 we get a marginal contribution of 822000. We know the selling price is 156, the variable cost is 96, therefore the marginal contribution per unit is 60. 822000/60 is 13700.
(b) Same principle as above adding back profit to fixed cost (247500+41100) + 574500 = 863100 which is our new marginal contribution. 863100/60 is 14385.
(c) We know the marginal contribution to achieve a net income of 288600 is 863100 given the fixed cost remaining the same. 863100/13700 = 63 which is the marginal contribution per unit. If the marginal contribution per unit goes up by 3, and the variable cost remains the same, that must mean the price goes up by 3. So 156+3 = 159.
Remember selling price - variable cost = marginal contribution.
Ответ:
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
There are actually five steps in the process the five steps are:
There are 5 steps in a consumer decision making process a need or a want is recognized, search process, comparison, product or service selection, and evaluation of decision. Most decision making starts with some sort of problem.
Explanation:
Hope this helps: D
- Lea
Brainliest pleae: P