Business, 28.10.2019 22:31 squawk1738

Babymart, inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315. babymart is expecting the variable costs of its baby cribs to increase from $90 to $115 due to an increase in prices by one of the company’s major raw materials suppliers. babymart plans to cut fixed costs by $5,000 but is going to hold the line on the selling price of its cribs. babymart currently has monthly net income of $40,000 on sales of 400 cribs. to maintain the same level of income, babymart will need to sell an additional units per month.
a. 10?
b. 15?
c. 25?
d. 35?

Answers: 3

Show answers

Answers

Answer from: kaitlyn7077

To maintain the same level of income, BabyMart will need to sell an additional units per month:

C. 25

Explanation:

Net Income = Total Revenues – Total Expenses

Considering this formula:

-Total revenues is the result of the sales price for the number of units: 315*u.

-The fixed cost is: 50000-5000=45000.

-The variable costs is the result of the variable cost per unit for the number of units: 115*u.

Replacing this in the formula:

40.000=(315*u)-45.000-(115*u)

40000+45000=200u

u=85000/200=425

Number of additional units: 425-400= 25

Answer from: raizagisselle7772

The additional number of units babymart needs to sell to maintain the same level of income is 25 units.

The fixed cost = $50,000 - $5,000 = $45,000

The total revenue = $315 The variable cost = $115 Let X represents the additional number of unitFurther Explanation

Therefore,

The total revenue = $115 × xThe variable cost = $ 315 × X

To determine the Net income, we have to subtract the total revenues from the total expenses. This can be expressed as:

Net income = Total revenue – Total expenses

If we substitute the above value, then we have

Recall, net income = 40,000, therefore we have:

40,000 = (315 × x) – 45,000 – (115X)

40,000 + 45,000 = (315 × X) (115 × X)

85,000 = (315x) – (115x)

85000 = 200X (divide both side by 200)

85,000 / 200 = 200X / 200

425 = X

X = 425

Therefore, we have to subtract the derived value from the monthly sale (400) cribs

Thus, 425 – 400

= 25.

Therefore, the additional number of units babymart needs to sell to maintain the same level of income is 25 units.

LEARN MORE:

Babymart, inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315. Babymart, inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315.

KEYWORDS:

babymart incbaby cribsvariable costtotal costfixed costsraw materials

Answer from: Quest

answer; /// i believe that the correct answer is (covenant;

Answer from: Quest

explanation:

Another question on Business

Business, 22.06.2019 17:30

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?

Answers: 1

Answer

Business, 22.06.2019 19:00

When making broccoli cream soup, the broccoli and aromatics should be a. burned. b. simmered. c. puréed. d. sweated.

Answers: 2

Answer

Business, 22.06.2019 20:50

Power plants that rely on coal increase the amount of sulfur dioxide that dissolves into the air, eventually increasing the acidity of precipitation. the higher acidity of rain and snow can damage forests by making it more difficult for plants to absorb minerals from the soil. the equations below provide information about the market demand and supply of electricity. there is a constant marginal external cost of $25 per unit of electricity.d: qd= 200 – 2ps: qs=p – 10what quantity of electricity satisfies allocative efficiency in this market? a. 60b. 70c. 50d. 43.3

Answers: 2

Answer

Business, 23.06.2019 00:10

You are to receive five gold coins from your great uncle as an incentive to study hard. the coins were originally purchased in 1982. your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable"). the amount your great uncle paid for the coins is a(n): indirect cost.overhead cost.opportunity cost.sunk cost.

Answers: 1

Answer

You know the right answer?

Babymart, inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price pe...

Questions