Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a new
range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers is estimated at $500,000.
The costs producing a single unit is $250.
The company prices these speakers at $400. The sales forecast projects that 2,000 units will be
sold by the end of the first year, 4,500 more in the second year, and 2,500 during the third year
after launch. What is the gross profit margin percentage for the first year?
A) 50% B) 62.5% C) 25% D) 37.5%
D
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References to other agreements in negotiable instruments:
a. destroy negotiability unless the recital makes the instrument subject to, or governed by, the terms of another agreement. b. do not destroy negotiability in any circumstances. c. do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement. d. None of these.
Consider the following requirements for a certain product
Period 1 2 3 4 5 6 7 8 Gross requirements 0 200 200 500 0 400 0 400 Beginning inventory = 500 units Setup cost = $500 per setup Lead time = 1 week Holding cost = $3 per unit per week a. Develop the lot-for-lot MRP table. b. Calculate the total relevant costs.
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