When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that:__________

Answer:

A democratic leader

Explanation:

A democratic leader is characterized by a participative approach to leadership, representing a shared form of leadership where decisions are made collectively by all leaders.

Response:

50 cartons of eggs

Clarification:

Comparative advantage refers to the economic principle where a country focuses on producing goods that it can make at lower opportunity costs compared to others.

                 Bottles of milk     cartons of eggs

India                  15                              50

Indonesia          25                             35

In this context, India's opportunity cost for producing 1 bottle of milk equates to 3.33 cartons of eggs. Meanwhile, Indonesia's opportunity cost for producing one bottle of milk translates to 1.4 cartons of eggs. Thus, Indonesia has a comparative advantage in bottle production due to its lower opportunity cost.

On the opposite side, India’s opportunity cost for generating one carton of eggs is 0.3 bottles of milk, compared to Indonesia’s 0.71 bottles. Hence, India has a comparative advantage in egg production due to its lower opportunity cost.

Accordingly, India will specialize in producing eggs since it holds the comparative advantage, resulting in a production of 50 cartons of eggs.

Answer and Explanation:

The calculation is detailed below:

1. Given that    

The break-even point is 115000 units  

Fixed cost = $349,600  

As we know that  

The Contribution Margin (CM) per unit is

=  Fixed cost  ÷  Break even units  

= $349,600  ÷ 115,000

= 3.04 per unit  

Next

Selling price = Variable cost  +CM per unit

= $4.56 + $3.04

= $7.60 per unit  

2. Given that

Net Income at 15600 units is $166,000  

Fixed cost = $458,000  

So,  

Contribution is

= $458,000 + $166,000

= $624,000  

Now

CM per unit is

= $624,000  ÷ 15,600

= 40 per unit  

The selling price per unit is: 120  

Thus,  

Variable cost per unit is

= $120 - 40

= 80 per unit  

And,

CM ratio is

= CM per unit ÷ Selling price per unit  

= $40 ÷ 120 × 100

= 33.33%  

3. Given that      

Net Operating income = $22,500    

CM ratio = 25%    

Actual revenue = $235,000  

Therefore,  

Contribution earned is

= $235,000 × 25%

= $58,750  

Now

Fixed cost = Contribution - Net income  

= $58,750 - $22,500

=$36,250  

4. Given that      

Variable cost ratio = 56%    

Fixed cost = $103,840    

Break even units= 23600 units

Thus,    

CM per unit is

= $103,840 ÷ 23,600

=$4.40  

CM ratio = 100 - 56% = 44%

And the selling price per unit is

=$4.40 ÷ 44%

=$10 per unit  

Now

Variable cost per unit is

=$10 × 56%

=$5.60 per unit  

And,

Contribution per unit is

= $10 × 44%

=$4.40 per unit

Answer:

MARIN PRODUCTS

Sales after further processing

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Revenue post-processing $1,040,000 $1,200,000 $2,700,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Individual processing cost (110,000) (44,000) (66,000)

Net profit 172,105 10,158 928,737

sale at split-off point

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Sales revenue $400,000 $840,000 $1,980,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Net profit (357,895) (296,842) 274,737

Conclusion: All products should undergo further processing to enhance the company's profit margins

Cost per unit = $3,600,000/76,000 = $47.37

DBB-1 = $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation: