The following information is available for a company that produces two types of strollers, standard and deluxe. Standard Deluxe Total Sales volume (units) 4,000 3,500 7,500 Revenue $96,000 $147,000 243,000 Direct materials 12,000 17,500 29,500 Direct labor 16,000 24,000 40,000 Marketing & Sales 20,000 28,500 48,500 Contribution Margin $48,000 $77,000 $125,000 Fixed manufacturing costs $24,000 Fixed marketing costs $18,000 Fixed administration costs $16,000 Profit $67,000 The company wants to shift its sales mix to selling 3,000 standard units and 4,500 deluxe units by using a new ad campaign that will increase its current fixed marketing costs by 25%. How would the company’s profit change as a result? Group of answer choices Increase by $5,500 Decrease by $7,500 Increase by $6,500 Decrease by $17,500 Increase by $135,000
Answers: 1
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Business, 22.06.2019 14:30
Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?
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Business, 23.06.2019 04:50
Which of the following results from the latest decision round is most important in providing guidance to company managers make in strategic moves and decisions to improve their companies competitiveness and rank among the top-performing companies in the current decision round
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The following information is available for a company that produces two types of strollers, standard...
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