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

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: deesands on Jan 5, 2020

Veron Corporation is considering building a new plant in Europe.  They predict sales at the new plant to be 100,000 units at $4.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$20,000	10%
Labour	$30,000	20%
Overhead	$50,000	40%
Marketing/Admin	$10,000	60%

A European firm was contracted to sell the product and will receive a commission of 13% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


How much does the European contractor expect to make in commissions?
◦ $52,000
◦ $80,000
◦ $13,000
◦ $40,000

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: cici on Jan 5, 2020

$52,000

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: D2AR0N on Jan 5, 2020

Veron Corporation is considering building a new plant in Europe.  They predict sales at the new plant to be 100,000 units at $4.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$20,000	10%
Labour	$30,000	20%
Overhead	$50,000	40%
Marketing/Admin	$10,000	60%

A European firm was contracted to sell the product and will receive a commission of 13% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The variable cost per unit for Veron Corporation is
◦ $0.76.
◦ $1.28.
◦ $1.62.
◦ $0.86.

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: Ddddd on Jan 5, 2020

$1.28.

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: Lisaclaire on Jan 5, 2020

Veron Corporation is considering building a new plant in Europe.  They predict sales at the new plant to be 100,000 units at $4.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$20,000	10%
Labour	$30,000	20%
Overhead	$50,000	40%
Marketing/Admin	$10,000	60%

A European firm was contracted to sell the product and will receive a commission of 13% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The contribution margin ratio for Veron Corporation is
◦ 32.00%.
◦ 68.00%.
◦ 81.00%.
◦ 132.00%.

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: CourtneyCNorton on Jan 5, 2020

68.00%.

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: c0205847 on Jan 5, 2020

Veron Corporation is considering building a new plant in Europe.  They predict sales at the new plant to be 100,000 units at $4.00/unit.  Below is a listing of estimated expenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$20,000	10%
Labour	$30,000	20%
Overhead	$50,000	40%
Marketing/Admin	$10,000	60%

A European firm was contracted to sell the product and will receive a commission of 13% of the sales price.  No U.S. home office expenses will be allocated to the new facility.


The margin of safety percentage for Veron Corporation is
◦ 87.50%.
◦ 12.50%.
◦ 93.56%.
◦ 112.50%.

Title: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ...
Post by: Heffejeff on Jan 5, 2020

87.50%.