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Author Question: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ... (Read 48 times)

luvbio

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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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$50,00010%
Labour$90,00020%
Overhead$40,00030%
Marketing/Admin$20,00050%

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.


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Marked as best answer by luvbio on Jan 5, 2020

Madisongo23

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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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mp14

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  • Posts: 332
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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$50,00010%
Labour$90,00020%
Overhead$40,00030%
Marketing/Admin$20,00050%

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%.




HCHenry

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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:

CategoryTotal Annual Expenses% of Annual Expense
that are Fixed
Materials$50,00010%
Labour$90,00020%
Overhead$40,00030%
Marketing/Admin$20,00050%

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%.




 

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