The Raw Materials Biff Tannen purchases cost $5 each. Using the units you determined in your Break
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Question:
Selling Price per unit | 12 | ||
Variable costs | |||
Raw Material | 5 | ||
Labor | 40 | ||
Contribution Margin | 33 | ||
Fixed Costs (Monthly) | |||
Saleries | 5600 | ||
Insurance | 200 | ||
Rent | 1000 | ||
Utilities | 700 | 7500 | |
Break even point (# of pickups) | 21.2121212121212 | ||
Break even ($) | 254.545454545455 | ||
Fixed costs + target income | 10500 | ||
contribution margin per unit | 3 | ||
pickups needed to achieve $3000 profit | 3500 | ||
$ sales representing the same | 42000 | ||
employees needed | 7.29166666666667 | or 8 |
2. Biff Tannen purchases these materials from Holomax Inc. under sales conditions of 3/10 N/30.
What would the Effective Rate of Interest be if payment were made on day 10?
Day 11?
And on day 30?
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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