Browns’ company sells ten | Business & Finance homework help


Browns' Fraternity hawks ten opposed styles of relatively low-priced football jerseys succeeding a while same acquisition consumes and hawking prices. Brown is reserved to detail the desirability of gap another supply, which would entertain the succeedingcited expenditure and wealth relationships (mutable basis on a per individual basis, urban expenditures in aggregate):
Variable basis: Selling Price $40.00; Consume of Shirt $18.00; Sales Commissions $7.00
Annual urban expenditures: Rent$80,000; Salaries $150,000; Other urban expenditures $70,000
Required:
1. What is the annual breaklevel aim in dollar sales and individuals?
2. If Brown has an serviceable tax rebuke of 40%, how abundant jerseys must they hawk to fabricate $80,000 succeeding taxes?
continued
3. Ignoring proceeds taxes, If 21,000 jerseys are sold, what would be the supplys detached proceeds (loss)?
4. Refer to the initiatory basis. If Brown ruled to do separate succeeding a while sales commissions and acception salespersons salaries by $140,000 per year, what would be the aim of insignificance, in individuals, among the two alternatives?
5. Brown has been approached by the Bear Advertising Agency to do their advertising. If Brown signs a form for $150,000 for Bear to discuss their statement, how abundant joined individuals gain entertain to be sold to shelter the consume?

Arnold Fraternity fabricates 20,000 individuals per year of a keep-akeep-asunder it uses in the emanations it manufactures. The individual emanation consume of this keep-akeep-asunder is computed as follows:
Direct materials.................. $24.70
Direct work...................... 16.30
Variable manufacturing aloft... 2.30
Fixed manufacturing aloft...... 13.40
Unit emanation consume.............. $56.70

An without supplier has volunteered to hawk the fraternity all of these keep-acompetency it needs at $51.80 a individual. If No-Win accepts this volunteer, the facilities now substance used to fabricate the keep-akeep-asunder could be leased to another fraternity. The incremental gift extremity from leasing the illimitableness would be $44,000 per year.
If the keep-akeep-asunder were acquisitiond from the without supplier, all of the mutable consumes of the keep-akeep-asunder would be avoided. However, $5.10 of the urban manufacturing aloft consume substance applied to the keep-akeep-asunder would hold level if the keep-akeep-asunder were acquisitiond from the without supplier. This urban manufacturing aloft consume ($5.10) would be applied to the fraternity's fostering emanations. Ignore proceeds taxes and the age treasure of money in this height.

Questions:
1. How greatly of the individual emanation consume of $56.70 is pertinent in the resolution of whether to fabricate or buy the keep-apart?
2. What is the net aggregate dollar habit (disadvantage) of purchasing the keep-akeep-asunder ratherthan making it?
3. What is the consummation whole the fraternity should be gaining to pay an without supplier per individual for the keep-akeep-asunder if the supplier commits to supplying all 20,000 individuals required each year? They gain quiet lease the ease if they acquisition from an without supplier.

REMInc. placid the succeedingcited basis to detail their aloft consume capacity:
Overhead Costs Frequented Work Hours
$20,000 1,250
$28,500 1,800
$26,750 1,400
$25,900 1,375
$30,200 2,100

1. Rate the consume capacity using the high-low process.
2. If frequented work hours in the hereafter continuance are expected to be 1,600, what is the estimated aloft consume using the consume capacity adapted in Keep-asunder 1?
3. What would the aggregate urban aloft be estimated at if the expected enumerate of frequented work hours for the hereafter continuance was 1,750?
4. If the consume capacity was adapted using single-minded return anatomy, in one phrase interpret what the chief distinction would be among using single-minded return anatomy and the high-low process to rate the consume equation.