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Author Question: Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new ... (Read 358 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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mp14

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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 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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