Response:
Minimum selling price= $28
Reasoning:
Based on the information provided:
Direct materials $8
Direct labor $9
Variable manufacturing costs= $7
Landor has received a special order for 25,000 fans destined for an overseas buyer.
The only incurred selling cost for this order will be $4 per fan for shipping.
Given that this is a special request and there is available capacity, fixed costs will not be considered in this analysis.
The minimum price needed equals the total variable cost per unit. It is not a sustainable price long-term.
Variable cost per unit= 8 + 9 + 7 + 4= $28
[[TAG_55]]Minimum selling price= $28[[TAG_56]]
True.
The Marketing Control Statement significantly aids marketers by focusing only on controllable costs, allowing them to manage both variable and programmed costs. This knowledge equips them to adjust effectively to achieve an optimal marketing mix that guarantees profitability. Furthermore, it is straightforward to prepare, making it appealing to marketers wanting to avoid the complex jargon of income statements.
Answer:
The slope representing the correlation between ice cream price and the sales quantity is -1/15
Explanation:
To find the slope of the price and quantity of ice cream sold, the following calculation is needed:
Slope= change in yaxis( vertical)/change in xaxis(horizontal)
Slope= change in price/change in quantity demanded
Slope=P2-P1/Q2-Q1
Slope=3-4/35-20
Slope=-1/15
The slope representing the correlation between ice cream price and sales quantity is -1/15
Answer:
The company’s offer for the rights to name the stadium amounts to $71,760.
Explanation:
The sponsorship’s total administrative cost is $78,000, which constitutes 8% of the revenue generated from the naming rights. Hence,
= Revenue × Percentage
= $78,000 × 8%
= $6,240
To find the amount proposed for the naming rights, we subtract the revenue-related expense from the total cost:
= $78,000 - $6,240
= $71,760
Factors of production are inputs utilized to create goods or commodities. They include resources necessary for a business to generate profit by manufacturing products, categorized into four types: land, labor, capital, and entrepreneurship.
