The Western Boot Company will produce 94,000 pairs of boots next year. Variable costs are 35 percent of sales,
while fixed costs total $223,000. At what price must each pair of boots be sold for Western to obtain an EBIT of
$1,391,500?
What will be an ideal response?
94,000P - (0.35)(94,000)P - 223,000 = 1,391,500
94,000P - 32,900P - 223,000 = 1,391,500
61,100P = 1,614,500
P = $26.42
You might also like to view...
All the elements of misrepresentation and the fact that the misrepresentation was knowingly made with an intent to deceive, have to be established to prove ________.
A. fraud B. a unilateral mistake C. undue influence D. duress
Which method almost always produces the most depreciation in the first year?
a. Units-of-production
b. Straight-line
c. Double-declining-balance
d. All produce the same total depreciation
What innovation in the early 20th century started a new age of communication?
A. the introduction of broadcast radio and TV B. the introduction of mass-scale printing capabilities C. the introduction of print advertisements in magazines D. the distribution of newspapers across state lines E. the introduction of the Internet
Two modules are used to feed the final assembly station on an assembly line. The final assembly station must produce 250 units in an eight-hour day
Each finished unit needs two module A's and 3 module B's. The factory uses a standard sized container that can hold 25 module A's or 35 module B's. It takes 2 hours to fill and move a container of module A's, but only 90 minutes to fill and move a container of module B's. If both module assembly processes have safety factors of 15%, how many containers should be used for each? How many hours of demand will this satisfy? What will be an ideal response?