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Author Question: Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant ... (Read 1114 times)

deesands

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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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$20,00010%
Labour$30,00020%
Overhead$50,00040%
Marketing/Admin$10,00060%

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


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Marked as best answer by deesands on Jan 5, 2020

cici

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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D2AR0N

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  • Posts: 561
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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$20,00010%
Labour$30,00020%
Overhead$50,00040%
Marketing/Admin$10,00060%

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.




Lisaclaire

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  • Posts: 569
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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$20,00010%
Labour$30,00020%
Overhead$50,00040%
Marketing/Admin$10,00060%

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%.




c0205847

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  • Posts: 531
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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$20,00010%
Labour$30,00020%
Overhead$50,00040%
Marketing/Admin$10,00060%

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%.




 

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