BUSINESS COLLEGE

The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Use the following data: Retail Division Commercial Division Sales $2,150,000 $1,200,000 Cost of goods sold 1,300,000 800,000 Selling expenses 150,000 175,000 Required: Determine the divisional income from operations for the Retail Division and the Commercial Division. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Answers

Answer 1
Answer:

Answer:

Retail Division  = $480,000

Commercial Division = $125,000

Explanation:

Divisional income from operations for the Retail Division and the Commercial Division

                                                    Retail Division     Commercial Division

Sales                                               $2,150,000              $1,200,000

Cost of goods sold                        ($1,300,000)             ($800,000)

Controllable Contribution                $850,000                 $400,000

Less Expenses

Selling expenses                            ($150,000)                 ($175,000)

Allocated Central Costs                 ($220,000)                ($100,000)

Net Income before tax                    $480,000                  $125,000

Calculations :

Allocation of Central Costs :

Retail Division (2,750/ 4,000 ×  $320,000) = $220,000

Retail Division (1,250/ 4,000 ×  $320,000) = $100,000

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Answers

Answer:

wow simple

Explanation:

so simple

just a little tricky

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. Which of the following best approximates the price elasticity of demand? -2.2 -1.8 -2 -2.6 Suppose George's marginal cost is $5 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was .

Answers

Answer: George's initial price markup over marginal cost was approximately 41.2% George's desired markup is 45% Since George's initial markup, or actual margin, was Less than his desired margin, raising the price was profitable

Explanation:

a) Price Elasticity of Demand = [(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]

= 5000- 4000/4000+ 5000) /  8.50- 9.50 /8.50 ₊9.50 =

1000/8000 / -1/ 18 = 0.125/-0.055  = -2.2

George's initial price markup over marginal cost was approximately

when Marginal cost = $5

b)initial price markup  = Price - marginal cost / price = 8.50 - 5.00/ 8.50 =   0.412=  41.2%

C) George's  desired margin = 1/absolute value of price elasticity = 1/ 2.2= 0.45= 45%

.

D)Since George's initial markup or actual margin was less  than his desired margin, raising the price is profitable.

This is because When the  markup is lower than the margin,  business is running on a loss, so it is nessesary to increase price.

Final answer:

The price elasticity of demand for George's T-shirts is approximately -1.7, indicating that demand is elastic. The initial markup over the cost price was 70%, but the question doesn't specify the desired markup or if raising the price satisfied that margin.

Explanation:

The price elasticity of demand measures how sensitive the quantity demanded is to a price change. It's calculated as the percentage change in quantity demanded divided by the percentage change in price. In George's case:

  •  
  • Initial quantity: 5000 T-shirts
  •  
  • New quantity: 4000 T-shirts
  •  
  • Initial price: $8.50
  •  
  • New price: $9.50

So, the percentage change in quantity = (4000-5000)/5000 = -20% and percentage change in price = ($9.50-$8.50)/$8.50 = 11.76%. Therefore, price elasticity of demand = -20%/11.76% = -1.7 (approx.). This indicates that the demand is elastic, meaning quantity demanded is sensitive to price changes.

Regarding the price markup, this is the percentage increase over the cost price. The initial markup = ($8.50-$5)/$5 = 70%. The question didn't specify the desired markup, or if raising the price satisfied the desired margin.

Learn more about Price Elasticity of Demand here:

brainly.com/question/31452681

#SPJ3

You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs

Answers

Answer:

Explanation:

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Answers

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Answers

Answer:

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Explanation:

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Answers

Answer:

$124,640.02

Explanation:

To find how much one would pay for the contract today, one has to calculate the present value.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator:

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I hope my answer helps you

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