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Social Science Clinic => Accounting => Topic started by: luvbio on Jan 5, 2020

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: luvbio on Jan 5, 2020

Duncan Enterprises is considering building a new plant in Canada.  They predict sales at the new plant to be 50,000 units at $10.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$50,000	10%
Labour	$90,000	20%
Overhead	$40,000	30%
Marketing/Admin	$20,000	50%

A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The variable cost per unit for Duncan Enterprises is
◦ $2.90.
◦ $3.10.
◦ $6.00.
◦ $5.10.

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: Madisongo23 on Jan 5, 2020

$5.10.

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: mp14 on Jan 5, 2020

Duncan Enterprises is considering building a new plant in Canada.  They predict sales at the new plant to be 50,000 units at $10.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$50,000	10%
Labour	$90,000	20%
Overhead	$40,000	30%
Marketing/Admin	$20,000	50%

A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The contribution margin ratio for Duncan Enterprises is
◦ 49.00%.
◦ 151.00%.
◦ 51.00%.
◦ 69.00%.

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: Joc on Jan 5, 2020

49.00%.

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: HCHenry on Jan 5, 2020

Duncan Enterprises is considering building a new plant in Canada.  They predict sales at the new plant to be 50,000 units at $10.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$50,000	10%
Labour	$90,000	20%
Overhead	$40,000	30%
Marketing/Admin	$20,000	50%

A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The margin of safety percentage for Duncan Enterprises is
◦ 118.37%.
◦ 94.04%.
◦ 81.63%.
◦ 18.37%.

Title: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ...
Post by: fffftttt on Jan 5, 2020

81.63%.