The correct entry on the tax return based solely on the information provided is option (a) $40,000 on Form 4797, Part III, Line 23 (for Property A).
The taxpayer sold a piece of equipment, which was originally purchased for $90,000, on September 1, 2020, for $70,000. The Section 179 expense and MACRS depreciation claimed on the equipment until the date of sale amounted to $40,000.
This information indicates that the taxpayer is reporting the sale of the equipment on Form 4797, which is used to report the sale of business property.
The sale of the equipment would be reported as a gain or loss on Part III, Line 23 of Form 4797, with a gain of $40,000 in this case. Therefore, option (a) is the correct entry on the tax return.
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please help me anyone
Answer:
i believe its a
Explanation:
hope it helps!!
Answer: It is A
Because Hard Skills are the Technical Skills used to perform daily job functions because Hard Skills allow you to perform a job that include mathematical calculations, equations, Computer engineering, Testing, equations, etc. Good Luck on you Quiz and Hope this Helped!
Which of these describes when people trust online reviews of their companies more than what companies communicate?a. The #MeToo Movement b. The culture of compliance c. The polarizing times d. The "Glassdoor" effect
When people trust online reviews of their companies more than what companies communicate is described as the "Glassdoor" effect. Thus the correct option is D.
What are online reviews?Online reviews refer to the experiences of an individual with a particular organization which they shared through companies website which leads to the decision-making of an individual while making any deal with the particular organization.
Depending on millions of business ratings and reviews, the free online platform Glassdoor provides some insights into employee satisfaction by gathering data and feedback about organizations from their former and current employees.
Therefore, option D is appropriate.
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kubin company’s relevant range of production is 11,000 to 14,000 units. when it produces and sells 12,500 units, its average costs per unit are as follows:
The average cost per unit increases as the number of units produced decreases.
Given the information, Kubin Company's average costs per unit are Direct materials: $7.00,Direct labor: $4.00,Variable manufacturing overhead: $1.50,Fixed manufacturing overhead: $5.00,Average cost per unit: $17.50.The fixed manufacturing overhead per unit is constant, regardless of the number of units produced. The variable manufacturing overhead per unit decreases as the number of units produced increases. This is because the fixed costs of variable manufacturing overhead are spread over a larger number of units. The direct materials and direct labor costs per unit are also constant, regardless of the number of units produced.
This is because the fixed manufacturing overhead costs are spread over a smaller number of units, which increases the per unit cost.
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What is the takt time of a manufacturing cell that must produce 250 parts over one shift with 7 hours of available time?
The Takt Time required for a manufacturing cellphone to produce 250 parts over one shift of 7 hours will be 1.68 minutes per part. Takt time is the frequency at which a product have to be completed in order to fulfill purchaser needs.
What is takt time and how is it calculated?Takt Time is calculated as Available Production Time divided through Customer Demand. Takt time represents the amount of manufacturing time time you have accessible to make every section in order to meet purchaser demand.
Takt time is the charge at which you want to complete a product in order to meet client demand. It comes from the German phrase “Takt,” meaning beat or pulse in music. Within manufacturing, takt is an essential measure of output against demand.
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https://brainly.com/question/28788177#SPJ4Which of the following influences the pay system that an organization uses? (Select all that apply.)
Legislation
Building structure
Competitive activities
Union contracts
The following influences the pay system that an organization uses: Legislation, Competitive activities, and Union contracts.
Legislation: The government establishes laws and regulations that determine minimum wages, overtime pay, employee benefits, and other compensation-related requirements. Organizations must comply with these legal requirements when designing their pay system.
Competitive activities: Organizations must consider the pay rates offered by their competitors for similar positions, geographical locations, and industries when designing their pay system. If an organization offers a lower salary than its competitors, it might struggle to attract and retain top talent.
Union contracts: Organizations that have collective bargaining agreements with unions must negotiate, design, and implement a payment system that aligns with the terms and conditions of the contract. Unions typically advocate for better wages and benefits for their members.
Building structure: Building structure does not typically influence the pay system that an organization uses.
Conclusion: The pay system that an organization uses is influenced by legislation, competitive activities, and union contracts, and it is important for organizations to design a pay system that aligns with these external factors to attract and retain top talent.
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what do you prefer local fundraising or global fundraising and why? (just one reason)
Answer:
Doing local fundraising for a large organization can sometimes seem complicated and unwieldy. Whether you are running a local affiliate of a large national organization, or are responsible for raising funds in a single neighborhood for a small, city-wide charitable group, raising local money for larger groups presents a unique challenge. I prefer local fundraising
global fundraising
Explanation:
because you can help people without water and electricy
ATP is a vehicle manufacturing company which purchases most of the component from suppliers all around the globe. To minimize inventory costs, management decided to use Economic Order Quantity to control its inventory level. KWP is ATP’s long-term supplier for tire, and they have agreed to strict delivery time and quality requirement. Based on the 202X budget, the following information was collected from production:1. Based on pre-order, ATP requires 5250 units of tire each month for the first 4 months of the year and 3625 units of tires each month for the remainder of the year. 2. The carrying cost per unit is R2 per year. 3. The cost per order is R1,000.
Economic Order Quantity is 7071 units to control its inventory level. The following variables are necessary to determine the economic order quantity: demand rate, setup costs, and holding costs.
What are EOQ and its formula?The following is the EOQ formula. EOQ equals the square root of [(2 times demand times ordering cost)/carrying charge]. Demand. The EOQ's assumptions state that the demand is unchanged. The measure of demand is how much inventory is used annually or how many units are sold annually.
Given,
Annual Requirement = 50,000 ( 5250 x 4 + 3625 x 8)
Carrying cost = 2 per year
Order cost = 1000 per order
Required to calculate EOQ =?
EOQ = square root of [(2 times demand times ordering cost)/carrying charge]
EOQ = √ 2 x 50000 x 1000/2
EOQ = √50,000,000
EOQ = 7071 units
Thus, the EOQ is 7071 units. Economic order quantity is crucial since it aids businesses in effectively managing their inventories. Without these inventory management strategies, businesses will frequently store excess inventory during times of low demand while holding insufficient inventory during times of strong demand. Missed opportunities result from either issue.
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Kiran's family took a road trip to Niagara Falls. Kiran slept through the last 62% of the trip. If the total length of the trip was 1000 miles, how many miles had they travelled when Kiran fell asleep?
Answer: 380
Explanation:
So we know that 62% of the trip she was asleep. Basically we need to subtract 100- 62 and get 38. 38% she was awake. Therefore once we get that we covert it into a decimal
It would be .38 we multiply by the total miles (1000) and your answer will be 380. :)
lon 4 of 20
What is profit?
A. Money remaining when all expenses except salaries, rent, and
taxes have been paid.
B. Money lost after all other business expenses, including salaries,
rent, and taxes have been paid.
C. Money invested after all business expenses, including salaries,
rent and taxes have been paid.
D. Money remaining when all other business expenses, including
salaries, rent, and taxes, have been paid.
SU
Please help............
principles of microeconomics - mindtap access principles of microeconomics - mindtap access by mankiw, n. gregory edition : 8th 18
The MindTap access for Principles of Microeconomics by N. Gregory Mankiw is an online resource that provides students with additional learning materials and tools to enhance their understanding of the subject. It accompanies the 8th edition of the textbook. Interactive Learning Activities.
E-Book Access: Students can access the digital version of the textbook online, making it convenient for studying anytime and anywhere. Video Resources: MindTap includes video resources such as lecture captures, tutorials, and animations that provide visual explanations of complex topics, making it easier for students to grasp difficult concepts. Study Tools: MindTap provides study tools like flashcards, practice exams.
Instructor Support: MindTap allows students to communicate with their instructors through a messaging system, facilitating discussions and clarifications on course materials. Overall, MindTap access for Principles of Microeconomics offers a comprehensive and interactive learning experience that complements the textbook, helping students deepen their understanding of microeconomic principles.
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Which it profession is directly responsible for the smooth operations and maintenance of the business’ networks?.
Network administrators are directly responsible for the smooth operations and maintenance of the business networks.
What is business?An organization or entrepreneurial entity engaging in commercial, manufacturing, or professional activity is referred to as an enterprise. Businesses can be charitable corporations or charitable institutions is called as business.
The efficient operation and upkeep of a company's networking including network technology, along with its equipment and software, is under the direct jurisdiction of network management.
It involves ensuring that the equipment, networking, data, and software of the company are all connected and operating effectively. Deploying and maintaining software products, resources, and architecture are three key responsibilities of the IT team.
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How does the work done by agriculture communications professionals compare to and differ from that of other marketing workers?
Answer:
Agriculture communications professionals need to have the same basic background on marketing, covering areas such as market research, product research, and market communication.
However, they will also need to have an agriculture-related background, because they need to understand the dynamics of the agriculture business, from farm issues, to the kind of crops or produce that they can buy or sell in a specific area, to even agricultural policy.
how is planning done and why is it important
Answer:
Planning helps us decide how best to use our resources (people, time, money, information, equipment) so that they make the most significant contribution to achieving our goal. Planning lays the basis for us to assess and evaluate our achievements effectively.
Explanation:
Hope it helps!!!
Stork Associates paid $60,000 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $80 to $250 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event at a cost of $1,300. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated.a. Stork can deduct $ for this event.b. If there was no bona fide business discussion either preceding or after the event, there is and the deduction would be $.
a. Based on the information given Stork can deduct $3,150 for this event.
b. There is no entertainment option and the deduction would be cost of ticket.
a. Stock deduction
Costs of seats $5,000
($250x20)
Food and beverage $1,300
Total Entertainment expense $6,300
($5,000+$1,300)
Less 50% Limitation
Deduction $3,150
($6,300×.50)
b. If there was no bona fide business discussion either preceding or after the event, there is no entertainment option and the deduction would be cost of ticket.
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Answer: $1300.00
Explanation: If this is for 2021 & 2022 then the employer can deduct all of the food and beverage -
However, taxpayers still may deduct some or all of the food and beverage expenses associated with operating their trade or business (e.g., a business meal with a current or potential client, or meals consumed by employees on work travel). In general, only 50 percent of food and beverage expenses can be deducted.
However, given the impact of the COVID-19 pandemic on restaurants, Congress provided a temporary 100 percent deduction for meals and beverages provided by a restaurant in 2021 and 2022.
Who makes foreign policy decisions?
On the recommendation and with the Senate's approval, the president appoints ambassadors. It is the responsibility of the State Department to formulate and implement the president's foreign policy.
Can Congress make foreign-policy decisions?The Executive Branch of the government Executive Branch oversees the Department of State, a Cabinet-level department. The U.S. Congress is the country's legislative body, and it is accountable to and elected by the American people.
With the exception of laws, treaties, and the authorization of war, the Constitution grants Congress the power to oversee but not to determine American foreign policy. In this position, congressional committees may interrogate Department representatives on issues related to foreign policy, internal business, and other topics as necessary.
Effective contact between State Department representatives and Members of Congress and their staffs is facilitated by the Department's Bureau of Legislative Affairs.
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In order to make decisions about foreign policy, the public, Congress, the executive branch, and the president must all be involved.
George Washington once said that with the abundance of self-styled secretary of state in the United States, it should have the most successful foreign policy in the entire globe. Since his time, there has been a significant increase in the difficulty of creating a coherent, pertinent, and workable foreign policy.
The process of formulation should, theoretically, start with a precise definition of the national interests, then outline the policies that would advance those interests, the course of action by the various departments and agencies that would further those policies, as well as the allocation of resources needed to carry them out.
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in a container, _____ allow a folder on the host machine to be referred to by name and mapped to a folder on the container machine.
In a container, bind mounts allow a folder on the host machine to be referred to by name and mapped to a folder on the container machine.
What are bind mounts?
A bind mount is a type of volume that enables the sharing of a specific folder on the host machine with a container. A folder on the host machine is mapped to a folder on the container machine via bind mounts. The folder on the host machine serves as a volume on the container machine, allowing for data persistence on the host machine.
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Which of the following benefits of the American Free Enterprise System requires a great deal of government involvement?
Responses
A protection
B responsive prices
C variety of goods
D freedom
(answer is protection NOT responsive prices)
Option (a), The American Free Enterprise System's benefits of protection necessitate extensive government participation.
What role does the government play in the free market in America, and why?The government has the coercive power to maintain peace and order, protect the right of individuals to own property, and enforce voluntarily engaged into agreements. In essence, the government serves to defend the free enterprise system.
The objectives of a free enterprise include more freedom, market efficiency, consumer rights, financial security and stability, and economic opportunity. Even if free market offers more freedom, there is a higher likelihood that many economic crises will arise without the involvement of the government.
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Operations management has the primary responsibility of Multiple Choice conducting research on consumer behavior. replacing quality with productivity in the manufacturing of goods. securing funds for the activities of an organization. creating goods and services that satisfy customers. developing only intangible products.
Operations management has the primary responsibility of creating goods and services that satisfy customers.
What is operations management?Operation management refers to the study of managing and controlling the various production processes involved in production of different products and services.
Operations management is concerned with the following:
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dentify all of the strategies below that could be used to successfully hedge an anticipated future purchase. A. Long call B. Long call and short put C. Long put and short call D. Long put
To successfully hedge an anticipated future purchase, the following strategies can be employed. Long call, Long call and short put, Long put and short call and Long put. Hence all of the options (A,B,C,D) are correct.
A. Long call: This strategy involves buying a call option, which gives the holder the right, but not the obligation, to purchase the underlying asset at a predetermined price (strike price) within a specified period. It provides protection against the price of the asset increasing beyond the strike price. B. Long call and short put: This combination involves buying a call option and simultaneously selling a put option. It provides both upside potential through the call option and limited downside protection from the premium received by selling the put option.
C. Long put and short call: This strategy involves buying a put option and simultaneously selling a call option. It provides downside protection from the put option while limiting the potential upside through the premium received by selling the call option. D. Long put: This strategy involves buying a put option, which provides protection against a decline in the price of the underlying asset. It allows the holder to sell the asset at the strike price, thereby limiting potential losses. Hence, options (A,B,C,D) are correct.
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Why would the stock exchange insist that all listed companies abide by a strict code of rules and procedures
Such regulations ensure that listed companies provide accurate and timely information about their operations and financial performance to potential investors. This enables investors to make informed investment decisions based on reliable and unbiased information.
The stock exchange, as a regulatory authority, mandates that all listed companies follow a strict code of rules and procedures to maintain transparency and fairness in the market. By following these regulations, companies also ensure that they comply with the law, operate ethically, and maintain high standards of corporate governance.
Furthermore, adherence to these rules and procedures also helps in protecting investors' interests by preventing fraudulent activities and insider trading. It also helps in maintaining the stability and integrity of the market, promoting healthy competition and preventing monopolies.
The stock exchange has the power to penalize companies that fail to comply with its rules and regulations, including fines, suspension, or delisting. Therefore, it is in the best interest of companies to abide by these rules and procedures to maintain their credibility and access to capital markets.
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A nurse earns $31,400 annually and receives a 4% raise in salary. What is the new salary?
The new salary can be found using the formula:
\(\rm New\: salary = Old\: salary + (Percent\: increase \cdot Old\: salary)\)
First, we need to convert the percentage increase to a decimal:
\(\rm\qquad\quad\implies 4\% = 0.04\)
Next, we can plug in the given values:
\(\rm New\: salary = 31,400 + (0.04 \cdot 31,400)\)
Simplifying this equation, we get:
\(\rm New\: salary = 31,400 + 1,256\)
\(\rm New\: salary = 32,656\)
\(\therefore\) The nurse's new salary is $32,656.
\(\blue{\overline{\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad\qquad}}\)
an insurer that experiences the impairment of its financial standing has become_________________________.
An insurer that experiences the impairment of its financial standing has become insolvent.
Insolvency refers to a state in which an entity, such as an insurer, is unable to meet its financial obligations or pay its debts as they become due. When an insurer becomes insolvent, it indicates that its financial resources are insufficient to cover its liabilities or honor its policyholder obligations.
Insolvency can occur due to various reasons, such as poor financial management, significant underwriting losses, inadequate reserves, or adverse economic conditions. It is a serious situation for an insurer as it may lead to the inability to pay claims or fulfill contractual obligations, potentially resulting in regulatory intervention, liquidation, or bankruptcy.
Insolvency is a critical concern in the insurance industry as policyholders rely on insurers to honor their claims and provide financial protection.
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the magnitude of operating leverage for perkins corporation is 4.5 when sales are $100,000. if sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b.14.5% c.45% d.10%
It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).
What is Operating Leverage?The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.
Magnitude of operating leverage= 4.5
Old sales= $100000
New sales= $110000
Percentage increase in sales:
(New-old)/old = (110,000-100,000)/100,000
= 10%
Consequently, a percentage rise in profit might be anticipated:
sales percentage growth times the degree of operational leverage
= 10% * 4.5
= 45%
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what are the dimensions measured on a stakeholder grid?
The dimensions measured on a stakeholder grid are C. Interest and power.
Stakeholder analysis is a method of identifying and evaluating the interests, expectations, and power of stakeholders who are impacted by a project, programme, or decision. One tool used in stakeholder analysis is the stakeholder grid. Based on their level of involvement in the project or decision and their ability to influence the outcome, the grid aids in classifying stakeholders. Stakeholders can be classified as -
High interest, high power: These stakeholders are the most crucial to interact with since they have both a high amount of influence over the project or decision and a high level of interest. Their expectations should be met, and they should be closely managed.High power, low interest: These stakeholders have the ability to affect the result of the project or decision, but their level of interest is low. It's critical to keep them informed and interested while avoiding information overload.Low power, high interest: These stakeholders have limited influence over the project or decision but a great deal of interest in it. They may not need to participate in the same way as the high-power stakeholders, but they can still be informed.Low power, low interest: These stakeholders have limited influence over the project or decision and little interest in it. They may not need much involvement, but they can be kept aware.Complete Question:
What are the dimensions measured on a stakeholder grid?
A. Access and availability
B. Expertise and influence
C. Interest and power
D. Motive and opportunity
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Yong teaches students with learning disabilities and physical disabilities. Barb teaches computer programming to high school students. Maya works in a private school teaching math to seventh-grade students. Destiny works in a college teaching English to adult students. Tanner helps an elementary school teacher and works under the guidance of that teacher.
Answer:
1. Special education teacher
2. Career and technical education teacher
3. Middle school teacher
4. Post secondary teacher
5. Teacher assistant
Explanation:
Which of these terms means "paying to communicate with potential clients about your company"? A. Customer support. B. Marketing. C. Advertising. D. Community outreach.
Marketing means "paying to communicate with potential clients about your company." The correct answer is option B.
Marketing is the action of selling a product or service. Marketing refers to all of the activities that a company does to increase customer demand for a product or service. This includes advertising, selling, and promoting. Businesses must constantly advertise their products to increase sales, attract new customers, and increase brand awareness. In a nutshell, marketing entails promoting a product or service to consumers.
Marketing is a significant aspect of any business because it helps in expanding the customer base and increasing profits. A company's success depends on how well they can market their products or services. To be effective, marketing must be well-targeted, relevant, and appealing to the target market. A company that markets its goods and services well has a better chance of gaining loyal customers and expanding its reach.
Marketing can take many forms, including advertising, direct marketing, public relations, and online marketing. Marketing activities must be aligned with a company's overall marketing strategy. A well-planned and executed marketing strategy can help businesses achieve their goals.
A strategy will assist you in identifying your target market and how best to communicate with them. In short, marketing is a set of strategies aimed at promoting products or services to consumers through various channels such as advertising, sales promotion, public relations, and direct marketing. Marketing is an essential part of any business, and it helps businesses reach new heights.
Hence, option B is the right choice.
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A set of strategies and activities that influences how we conduct business, the clothes we wear, where we live, and how we spend our money and time is a definition of:
Answer:
Marketing
Explanation:
This is exactly what you do in marketing.
Management anticipates fixed costs of $72,800 and variable costs equal to 46% of sales. What will pretax income equal if sales are $328,000? a) $78,080 b) $193.040 c) $255,200 d) $150,880 e) $104,320
The pretax income will equal $104,320 if sales are $328,000. The correct answer is option (e).
To calculate the pretax income, we need to subtract the total costs from the sales revenue.
Given:
Fixed costs = $72,800
Variable costs = 46% of sales
Sales = $328,000
First, let's calculate the variable costs:
Variable costs = 46% of $328,000
Variable costs = 0.46 * $328,000
Variable costs = $150,880
Next, we can calculate the total costs:
Total costs = Fixed costs + Variable costs
Total costs = $72,800 + $150,880
Total costs = $223,680
Finally, we can calculate the pretax income:
Pretax income = Sales - Total costs
Pretax income = $328,000 - $223,680
Pretax income = $104,320
Therefore, the pretax income is option e) $104,320.
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Hockley Brewing has produced a new craft lager beer that will be branded Hockley Classic Lager. The market for craft beer is about $20 million retail per year and the average retail price across all craft beer producers is $2. 50. The following information applies to Hockley’s new craft lager beer.
Factory production costs $1. 05 / can (Variable Cost)
Beer ingredients $0. 35 / can (Variable Cost)
Packaging $0. 20 / can (Variable Cost)
Advertising and promotion $60,000 (Fixed Cost)
Channel listing fees $30,000 (Fixed Cost)
Hockley’s wholesale price to retailers $2. 40 / can (Variable Cost)
(Hockley’s) manufacturer’s suggested retail price $2. 55 / can (Variable Cost)
a. What is Hockley’s unit contribution (measured in $ per can) and contribution margin (measured in percentage)?
b. What is the break-even point in cans? in dollars?
c. What is the necessary sales volume in cans to achieve a $150,000 (target) profit?
d. What will Hockley’s net profit be if 100,000 cans of the new lager are sold?
e. What will Hockley’s market share of craft beer be if they sell 100,000 cans?
f. Their largest competitor is Mill Street Brewery whose Original Organic Lager has 2. 5% market share of the craft beer market. Given Hockley’s market share calculated in part (e), what will Hockley’s relative market share (RMS) be for their Classic Lager?
g. The craft beer market is growing at 10% annually, higher than any other type of beer. With the RMS for Hockley Classic Lager calculated in part
(f), at the end of their first year, where in Hockley’s portfolio will Classic Lager be positioned and what recommendation would follow?
h. Calculate the price elasticity of demand if they raise the MSRP from $2. 55 to $2. 75 and demand falls from 100,000 cans to 95,000 cans. Is demand for this product price elastic or inelastic?
Hockley's unit contribution is $0.50 per can with a contribution margin of 19.6%. The break-even point is 180,000 cans or $432,000, and a sales volume of 480,000 cans is needed to achieve a target profit of $150,000.
a. Hockley's unit contribution is $0.50 per can ($2.55 - $2.05), and the contribution margin is 19.6% (($0.50 / $2.55) x 100).
b. The break-even point in cans can be calculated by dividing the total fixed costs ($60,000 + $30,000) by the contribution per can ($0.50). The break-even point is 180,000 cans. In dollars, the break-even point is $432,000 (180,000 cans x $2.40).
c. To achieve a target profit of $150,000, we need to calculate the necessary sales volume in cans. The formula is (Total Fixed Costs + Target Profit) / Contribution per can. Using the given numbers, the necessary sales volume is 480,000 cans.
d. If 100,000 cans of the new lager are sold, the net profit can be calculated as (Unit contribution x Sales volume) - Total Fixed Costs. With the given numbers, the net profit would be $10,000.
e. If Hockley sells 100,000 cans, their market share of craft beer can be calculated as (Sales volume / Total market size) x 100%. With a $20 million market size, their market share would be 0.5%.
f. Hockley's relative market share (RMS) for their Classic Lager can be calculated by dividing their market share by Mill Street Brewery's market share and multiplying by 100. With Hockley's market share of 0.5% and Mill Street Brewery's market share of 2.5%, Hockley's RMS would be 20%.
g. With an RMS of 20% for their Classic Lager, Hockley would be positioned as a significant player in the craft beer market. The recommendation would be to continue investing in and promoting the Classic Lager to further increase its market share.
h. The price elasticity of demand can be calculated using the formula: Percentage change in quantity demanded / Percentage change in price. In this case, the percentage change in quantity demanded is ((100,000 - 95,000) / 100,000) x 100% = 5%, and the percentage change in price is (($2.75 - $2.55) / $2.55) x 100% = 7.8%. Therefore, the price elasticity of demand is 0.64 (5% / 7.8%). With a price elasticity of less than 1, demand for this product is price inelastic, meaning that a price increase led to a proportionally smaller decrease in quantity demanded.
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