Asked by James Lombino on Jul 09, 2024
Verified
Assume that Tolar decides to upgrade the calculators.At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?
A) $8 per calculator
B) $30 per calculator
C) $53 per calculator
D) $67 per calculator
Selling Price
The amount a seller charges for a product or service.
Upgrading Calculators
The process of replacing or enhancing calculators to include more advanced features or capabilities, often to improve efficiency or meet new requirements.
Present Condition
The current state or situation of an object, individual, or scenario, often assessed to make decisions or predictions.
- Assess the fiscal repercussions associated with the debut of a novel product or the agreement to a special order.
Verified Answer
Price per calculator × 400 calculators > $11,200 + $10,000
Price per calculator × 400 calculators > $21,200
Price per calculator > $21,200 ÷ 400 calculators = $53 per calculator
Reference: CH11-Ref4
The management of Bonga Corporation is considering dropping product D74F.Data from the company's accounting system for this product for last year appear below:
All fixed expenses of the company are fully allocated to products in the company's accounting system.Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued.
Learning Objectives
- Assess the fiscal repercussions associated with the debut of a novel product or the agreement to a special order.
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