Answer:
$4729.17
$4256.25
Explanation:
Activity method based on output = (miles driven that year / total miles that can be driven) x (Cost of asset - Salvage value)
Year 1
(20,000 / 96,000) x ($25,700 - $3,000) = $4729.17
Year 3
(18,000 / 96,000) x ($25,700 - $3,000) = $4256.25
Two cigarette manufacturers (Firm A and Firm B) are faced with lawsuits from states to recover the healthcare related expenses associated with cigarette smoking. Both cigarette firms have evidence that indicates that cigarette smoke causes lung cancer (and other related illnesses). State prosecutors do not have access to the same data used by cigarette manufacturers and thus will have difficulty recovering full costs without the help of at least one cigarette firm study. Each firm has been presented with an opportunity to lower its liability in the suit if it cooperates with attorneys representing the states. Pursuing its own best interests, Firm Awill concede that cigarette smoke causes cancer.
a. only if Firm B concedesthat cigarette smoke causes lung cancer.
b. only if Firm B does notconcede that cigarette smoke causes lung cancer.
c. regardless of whetherFirm B concedes that cigarette smoke causes lung cancer.
d. none of the above. Inpursuing its own best interests, Firm A will in no case concedethat cigarette
Answer:
d. none of the above. In pursuing its own best interests, Firm A will in no case concede that cigarette smoke causes cancer
Explanation:
The given scenario is a classic case of prisoner's dilemma.
Individuals in a given situation tend to tend to not cooperates or confess even if doing so is in their best interest.
Rationally Firm A will have the incentive of a lower liability in the suit brought against them. But they will in no situation admit that cigarette smoke causes cancer. Even if Firm B admits to it.
The best interest for Firm A will be not to admit and maintain their sales as this will affect their business adversely
You want to have $2.7 million when you retire in 37 years. You feel that you can save $600 per month until you retire. What APR do you have to earn in order to achieve your goal
Answer:
9.87%
Explanation:
Calculation to determine What APR do you have to earn in order to achieve your goal
$2.7 million = $600{[(1 + r)444 − 1] / r}
r = .0082*100
r=.82%
r = .82% × 12
r = 9.87%
Therefore the APR you have to earn in order to achieve your goal is 9.87%
Your credit card company quotes a lending rate of 15.4% APR. How much is the periodic rate (in percentage points) if the company compounds monthly
Answer:
1.28%
Explanation:
Periodic rate = APR / amount of compounding
the amount of compounding is equal to the number of months that the company compounds the amount
15.4 / 12 = 1.28%
Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 3,900 robes. The standard costs associated with this level of production are as follows:
Total Per Unit of Product
Direct materials $ 78,624 $ 20.16
Direct labor $ 12,870 3.30
Variable manufacturing overhead
(based on direct labor-hours $ 2,340 0.60
$ 24.06
During April, the factory worked only 755 direct labor-hours and produced 4,000 robes. The following actual costs were recorded during the month:
Total Per Unit of Product
Direct materials (14,000 yards) $ 84,000 $ 21.00
Direct labor $ 14,000 3.50
Variable manufacturing overhead $ 7,200 1.80
$ 26.30
At standard, each robe should require 3.2 yards of material. All of the materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
Materials price variance $ (Click to select)UFNone
Materials quantity variance $ (Click to select)NoneFU
2. Compute the labor rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round your final answers to the nearest dollar.)
Labor rate variance $ (Click to select)NoneFU
Labor efficiency variance $ (Click to select)UNoneF
3. Compute the variable manufacturing overhead rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
Variable overhead rate variance $ (Click to select)UFNone
Variable overhead efficiency variance $ (Click to select)NoneUF
Answer and Explanation:
The computation is shown below;
1
Material price variance= (Standard Price-Actual Price) × Actual Qty
= (20.16 ÷ 3.2 - 84000 ÷ 14000) × 14000
= $4200 Favorable
Material Quantity variance= (Standard Qty -Actual Qty ) ×Standard Price
= (4000 ×3.2 - 14000) ×6.3
= $7560 Unfavorable
2
Labour rate variance= (Standard Rate-Actual Rate) ×Actual Hour
= (12870 ÷ 780-14000 ÷ 755) ×755
= $1542.50 Unfavorable
Labour efficiency variance= (Standard Hour -Actual Hour ) × Standard Rate
= (780 × 4000 ÷ 3900 - 755) × 16.50
= $742.50 Favorable
3
Variable Overhead rate variance= (Standard Rate-Actual Rate) × Actual Hour
= (2340 ÷ 780-7200 ÷ 755) × 755
= $4935 Unfavorable
Variable Overhead efficiency variance= (Standard Hour -Actual Hour ) × Standard Rate
= (780 × 4000 ÷ 3900 - 755) × 3
= $135 Favorable
The purpose or objectives of competition policy
Answer:
to encourage creativity
The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is
Question Completion:
ANSWER CHOICES
A. operating with decreasing returns to scale
B. a natural monopoly
C. a legal monopoly
D. monopolistically competitive
E. productively efficient
Answer:
Based on this data, the market for product Z is:
A. operating with decreasing returns to scale.
Explanation:
For the Average Revenue (Price) to equal the Average Total Cost (ATC) and enable the firms operating in the market to break-even, the firms must increase their production units from 2 million to 3.5 million units. The conclusion that the market for product Z is operating with decreasing returns to scale for a single supplier is because it will take a 75% increase in production for the average total cost to fall from $7 to $5 for the single producer. In other words, the percentage increase in production does not result in a proportionate decrease in average total cost.
A machine shop uses a periodic system to maintain the inventory saw blades. The review period is four days and lead time is two days. They use an average of 11 saw blades per day. The standard deviation of use over a six-day period is 9 saw blades. Saw blades aren't the most critical item they carry, but the manager would like to limit the probability of a stockout to 2.5% of the time. What should their restocking level be
Answer:
the restocking level is 147 units
Explanation:
The computation of the restocking level is shown below:
= (11 × (2 + 4)) + 9 × 1.96
= 147 units
The 1.96 comes from
= 100 - 2.5%
= 97%
The value of z for 97% is 1.96
Hence, the restocking level is 147 units
The same would be considered and relevant too
A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's personal financial statement and income are consistent with those of her wealthy clients, yet she never buys limited partnership units for her personal account. Which statement is TRUE
Answer: Her actions are inconsistent with the advice being given to her clients and this must be disclosed
Explanation:
Since the registered investment adviser often recommends real estate limited partnership investments to her wealthy clients but she never buys limited partnership units for her personal account.
This shows that her actions are inconsistent with the advice being given to her clients and this must be disclosed.
You recently purchased a stock that is expected to earn 24 percent in a booming economy, 13 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 24 percent probability of a boom, 61 percent chance of a normal economy, and 15 percent chance of a recession. What is your expected rate of return on this stock
Answer:
13.39%
Explanation:
Calculation to determine the expected rate of return on this stock
Using this formula
E(r)=(Boom probability*Expected boom economy stock)+(Normal economy*Expected Normal Economy stock)+(Recession*Recession economy lose)
Let plug in the formula
E(r) = (.24 * .24) + (.61 * .13) + (.15 *- .02)
E(r)= .0576 + .0793- .003
E(r)= .1339*100
E(r)=13.39%
Therefore the expected rate of return on this stock will be 13.39%
Assume that the reserve requirement is 5 percent. All other things being equal, will the money supply expand more if the Fed buys $2,000 worth of bonds or if someone deposits in a bank $2,000 that she had been hiding in her cookie jar? If one creates more, how much more does it create? Support your thinking.
Answer: See explanation
Explanation:
Based on the information given in the question, the reserve ratio is given as 5%, then the money multiplier will be:
= 1 / reserve requirement
= 1/5%
= 1 / 0.05
= 20.
Therefore, the money multiplier will increase by 20.
Then, the Money supply will be calculated as:
= amount x money multiplier
= 2000 x 20
= 40000
Therefore, the increase in the money supply will be $40000.
In this case, if the FED purchases $2000 worth of bonds, it'll expand the money supply more.
When you took over as the marketing manager for clothing manufacturer Harrison, it appeared that the existing social media strategy was not resonating with consumers so you launched a new interactive campaign inviting the brand's loyal fans to post pictures of themselves wearing Harrison merchandise. Which of the following would indicate that the user-generated content is getting a better response?
a. To date, nearly 3,000 users have posted photos or videos.
b. User-generated posts typically get at least 50 "likes" each.
c. Your conversion rate has been averaging 2-3 percent.
d. You've seen a 7-percent increase in online sales.
Answer: You've seen a 7-percent increase in online sales.
Explanation:
A 7-percent increase in online sales will iindicate that the user-generated content is getting a better response.
Option A is Incorrect as 3,000 users posting photos or videos doesn't indicate that there social media strategy used is working for the company.
Option B and C isn't correct as well. Option D shows that the social media strategy is having a positive impact as there's an increase in sales.
The following data were extracted from the income statement of Keever Inc.:
Current Year Previous Year
Sales $18,500,000 $20,000,000
Beginning inventories 940,000 860,000
Cost of goods sold 9,270,000 10,800,000
Ending inventories 1,120,000 940,000
Required:
Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory.
Answer:
current year 9
previous year = 12
2. current year = 40.56
previous year = 30.42
Explanation:
Inventory turnover is an example of an activity ratio
Activity ratios calculate the efficiency of performing daily task of a firm
Inventory turnover = cost of goods sold / average inventory
Average inventory = (beginning inventory + ending inventory) / 2
the number of days' sales in inventory = number of days in a period / inventory turnover
Current year = (1,120,000 + 940,000) / 2 = 1,030.000
turnover = 9,270,000 / 1,030.000 = 9
365 / 9 =40.56
Previous year
Average inventory = (940,000 + 860,000) / 2 = 900,000
Inventory turnover = 10,800,000 / 900,000 = 12
365 / 12 = 30.42
Inez is compensated based on a plan that pays a base salary, with commission in addition. Inez receives $40,000/year salary (and is paid monthly); additionally, she receives 8% on all sales in excess of $50,000 in sales/month. In April, Inez sold $69,500 of product. Calculate her monthly earnings.
Answer:
$4,893.33
Explanation:
Inez's monthly earnings in April comprises of her monthly salary and the performance bonus which are both computed as shown below:
monthly salary=annual salary/12 months
annual salary
monthly salary=$40,000/12
monthly salary=$3,333.33
Note that the performance bonus is not based on the entire sales revenue generated by her but on the sales revenue above the threshold of $50,000
sales performance bonus=($69,500-$50,000)*8%
sales performance bonus=$1,560
monthly earnings=$3,333.33+$1,560
monthly earnings=$4,893.33
Find the APR, or stated rate, in each of the following cases:
Stated Rate (APR) Number of Times Effective
Compounded Rate (EAR)
% Semiannually 11.9%
Monthly 12.8
Weekly 10.5
Infinite 14.2
Answer and Explanation:
The annual percentage rate or stated rate is as follows;
Effective annual rate = [1 + (Annual percentage rate ÷ compounding period )]^compounding period - 1
Annual percentage rate
= 2[(1.119)1 ÷ 2 - 1]
= 11.57%
Annual percentage rate is
= 12 [(1.128)1 ÷ 12 - 1]
= 12.11%
Annual percentage rate
= 52[(1.105)1 ÷ 52 - 1]=
= 9.99%
Annual percentage rate
= 365[(1.142)1 ÷ 365 - 1]
= 13.28%
Assume a $1,000 Treasury bill is quoted to pay 8% and matures in 3 months. 1. How much interest would an investor receive? (10 pts)
Answer:
i dont know
Explanation:
NorthRim Inc. (NRI), imports extreme condition outdoor wear and equipment from the Allofit Territories Company (ATC) located in Canada. With the steady decline of the U.S dollar against the Canadian dollar NRI is finding a continued relationship with ATC to be an increasingly difficult proposition. In response to NRI's request, ATC has proposed the following risk-sharing arrangement. First, set the current spot rate as the base rate. As long as spot rates stay within 5% (up or down) NRI will pay at the base rate. Any rate outside of the 5% range, ATC will share equally with NRI the difference between the spot rate and the base rate. If the current spot rate is C$1.20/$, what are the upper and lower limits for trading to take place at C$1.20?
a. C$1.205/$ - C$1.195/$
b. C$1.15/$ - C$1.25/$
c. C$1.14/$ - C$1.26/$
d. none of the above
Answer:
The answer is "Option C".
Explanation:
Let
Spot rate = Base rate= 1.20
Within the [tex]5\%[/tex] range, the trade will taking the place at the base rate that is [tex]=1.20[/tex]
Calculating the lower limit:
[tex]\to 1.20 - (5\% \times 1.20) =1.20 - (0.06)= 1.20 - 0.006 = 1.14\\\\\to 1.20 + (5\% \times 1.20)=1.20 + (0.06) = 1.20 + 0.006 = 1.26[/tex]
assuming the hiking shoes division of the all about shoes corporation had the following results last year managements target rate of return 10% and the weighted average cost of capital is 30%. its effective rac rate is 25% what is the divisions return on investment roi
Answer:
116.67%
Explanation:
Note: Complete question is attached as picture below
Capital Turnover = Sales / Total Assets
Capital Turnover = $7,000,000 / $1,500,000
Capital Turnover = 4.67
Sales Margin = Operating Income / Sales
Sales Margin = $1,750,000/$7,000,000
Sales Margin = 0.25
Sales Margin = 25%
Division Rate of Investment = Capital Turnover * Sales Margin
Division Rate of Investment = 4.67 * 25%
Division Rate of Investment = 116.67%
The ________ paid for products and services goes by many names, like tuition for your education, rent for an apartment, interest on a bank credit card, and a premium for car insurance. Multiple Choice fee value cost price exchange rate
Answer:
price.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.
Generally, the price paid by consumers for products and services are referred to as by many names such as tuition for your education (school fee), rent for an apartment (house rent), interest on a bank credit card, and a premium for car insurance.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Additionally, one of the importance associated with the pricing of products is that, it improves the image of a business firm.
Suppose the price of a BMW falls. Explain the law of demand based on the income and substitution effects.
Answer:
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
It is expected that when the price of a BMW falls, the quantity of cars demanded increases.
there are two effect in place that affect the demand for BMW.
They are :
the substitution effect the income effectThe substitution effect looks at the change in price of a good relative to other goods. When the price of a BMW falls, it becomes cheaper relative to other goods. As a result, consumers buy more of BMWs and less of other goods. This leads to a movement down along the demand curve for that good.
The income effect looks at how a change in price affects real disposable income. When the price the BMW decreases, real disposable income increases. As a result, consumers can afford to buy more BMW cars as the consumers purchasing power has increased, holding money income constant.
These two effects lead to an increase in the quantity of BMW demanded
Explanation:
The opportunity cost of buying a ticket to a major league baseball game and then going to the game is: the time spent at the game. the next best alternative that could have been undertaken. all other alternative activities that could have been undertaken. the price of the ticket.
Answer:
. the next best alternative that could have been undertaken.
Explanation:
Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives
Assume that the next best option instead of attending the game is to study for a test. this is the opportunity cost
the price of the ticket is known as the explicit cost. Explicit cost includes the amount expended in carrying out a particular activity
Oligopolies would like to act like a Group of answer choices duopoly, but self-interest often drives them closer to the perfectly competitive outcome. competitive firm, but self-interest often drives them closer to the duopoly outcome. monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly. monopoly, but self-interest often drives them closer to the perfectly competitive outcome.
Answer:
monopoly, but self-interest often drives them closer to the perfectly competitive outcome.
Explanation:
In the given situation, the oligopoly tried to act like the monopoly via collusion but at the same time they would tend to cheat that drives the profit and the price per unit is less also it acted as the competitive firm
so here the self-interest would also be drives them near to the perfectly competitive result
hence, the above represent the answer
Oligopolies would like to act like a monopoly, but self-interest often drives them closer to the perfectly competitive outcome. The correct option is d.
Oligopolies are a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.
A monopoly is a market with only one producer, a duopoly has two firms, and an oligopoly consists of two or more firms. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly influence the others.
Learn more about oligopolies, here:
https://brainly.com/question/28317513
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One-fifth of the population, rank ordered by income, is A) An income quintile B) A population quintile. C) An earnings-population quintile. D) None of the choices are correct.
Answer: income quintile
Explanation:
An income quintile is how the socioeconomic status of a population is measured. Here, the population is divided into 5 income groups which is from the lowest income group to the highest income group. One-fifth of the population are in each group, which is rank ordered by income.
The first quintile = 0 - 20%
Second quintile = 20% - 40%
Third quintile = 40% - 60%
Fourth quintile = 60% - 80%
Fifth quintile = 80% - 100%
Concord is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $10000. The variable cost of capturing each deer is $10 each. Concord is funded by a local philanthropy in the amount of $56000 for 2020. How many deer can Concord capture during 2020?
Answer: 4600
Explanation:
The number of deer that Concord can capture during 2020 will be calculated thus:
Let the number of deers that'll be captured be represented by x.
Based on the information given in the question, we can form an equal which will be:
Fixed cost + Variable cost = Total cost
10000 + 10x = 56000
10x = 56000 - 10000
10x = 46000
x = 46000/10
x = 4600
Therefore, 4600 deers can be captured
It takes Suzi 6 hours to sew a shirt and 4 hours to bake a cake. Anna can sew a shirt in 3 hours and bake a cake in 1 hour. If Anna and Suzi decide to specialize and trade, who should make shirts?
Answer:
Suzi
Explanation:
Comparative advantage is the relative edge that a person has over another in the production of a product. They use less resources to produce the product than others.
When two parties corporate in production the good to produce can be shared base on who has comparative advantage or the person that loses less in a production process.
In the give instance
Suzi can produce a shirt in 6 hours while Anna produces it in 3 hours. Anna is twice as fast as Suzi.
Suzi can bake a cake in 4 hours while Anna can do so in 1 hour. So Anna is 4 times faster than Suzi in baking cakes.
It will be best for Suzi to make shirts since she is only twice as slow as Anna.
Anna will be better off baking cakes as she is four times as fast here.
During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,200 while general, selling, and administrative expenses totaled $4,700. The company produced 6,050 units and sold 3,700 units at a price of $8.20 a unit. What was Silverman's net income for the first year in operation
Answer:
$4,550
Explanation:
First, we need to calculate the product cost per unit
Product cost per unit = Total production costs / Units produced
= ($15,085 + $10,200 + $9,200) / 6,050 units
= $5.7 per unit
Cost of goods sold = $5.7 × 3,700 units
= $21,090
Net income = Sales - Cost of goods sold - Operating expenses
= ($8.2 × 3,700) - $21,090 - $4,700
= $30,340 - $21,090 - $4,700
= $4,550
The current assets of Sheridan Company are $292400. The current liabilities are $116960. The current ratio expressed as a proportion is
The current ratio expressed as a proportion is 2.5
Explanation:
Given :
The current assets = $292400
The current liabilities are $116960.
To find :
The current ratio
Solution :
Current Ratio =
[tex]\sf{\dfrac{Current \: Assets }{Current \: Liabilities}}[/tex]
[tex]\sf{\implies{\dfrac{292400}{116960}}}[/tex]
[tex]\implies[/tex] 2.5
Therefore, The current ratio expressed as a proportion is 2.5
If you were an investor during the dot revolution, and you invested primarily in technology stocks, what fundamental principle of finance did you ignore and how did it affect the value of your portfolio
Answer:
If an individual has shares in a dot.com or IT firm in his or her portfolio, the essential concept of finance that might be overlooked while owning the commodity is :
1) The corporation's income/EPS has decreased.
2) A slowdown in the corporation 's growth and turnover.
3) The dividend payment ratio will be reduced.
Quarterly effects on the outcomes would rarely make a difference in the year results, given the seasonal or business pattern in IT organisations.
The following are the relevant data for calculating sales variances for Fortuna Co., which sells its sole product in two countries: Gallia Helvetica Total Budgeted selling price per unit $6.00 $10.00 -- Budgeted variable cost per unit (3.00) (7.50) -- Budgeted contribution margin per unit $3.00 $ 2.50 -- Budgeted unit sales 300 200 500 Budgeted mix percentage 60% 40% 100% Actual units sold 260 260 520 Actual selling price per unit $6.00 $ 9.50 NA Question The sales mix variance for the two countries is
Answer:
$26 U
Explanation:
Calculation to determine what The sales mix variance for the two countries is
First step is to calculate the sales mix variance in Gallia
Using this formula
Sales mix variance in Gallia={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}
Let plug in the formula
Sales mix variance in Gallia= {[260 –(520 actual × .6 )] × $3 }
Sales mix variance in Gallia=$156 U
Second step is to calculate the sales mix variance in Helvetica using this formula
Sales mix variance in Helvetica={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}
Let plug in the formula
Sales mix variance in Helvetica= {[260 –(520 × .4 )] × $2.50 }
Sales mix variance in Helvetica=$130 F
Now let calculate the multiple-country sales mix variance using this formula
Sales mix variance =Sales mix variance in Gallia-
Sales mix variance in Helvetica
Let plug in the formula
Sales mix variance= ($156 U –$130 F)
Sales mix variance=$26U
Therefore The sales mix variance for the two countries is $26U
All of the following are advantages of using the average rate of return except a.the average rate of return method emphasizes accounting income, which is often used by investors and creditors in evaluating management performance. b.the average rate of return method uses present values. c.the average rate of return method includes the entire amount of income earned over the life of the proposal. d.the average rate of return is easy to compute.
Answer:
Advantages of using the average rate of return except:
b.the average rate of return method uses present values.
Explanation:
The company's average rate of return or the accounting rate of return (ARR) ignores the time value of money or the cash flows in its calculations. It is a simple capital evaluation method which calculates the ratio based on the percentage of annual returns over the project's initial cost. The ARR is not like other investmental appraisal methods, it bases its calculations on accounting profits rather than cash flows.
Gena Manufacturing Company has a fixed cost of $225,000 for the production of tubes. Estimated sales are 150,000 units. A before tax profit of $125,000 is desired by the controller. If the tubes sell for $5 each, what unit contribution margin is required to attain the profit target?
$1.47.
$2.33.
$3.00.
$0.90.
Answer: $2.33
Explanation:
The unit contribution margin that is required to attain the profit target will be calculated thus:
= (Fixed cost + Desired profit) / Estimated units
= ($225,000 + $125,000) / 150,000
= $350,000 / 150,000
= $2.33
Therefore, the unit contribution margin is $2.33