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please answer all these questions, i dont have many left Question 24 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle
please answer all these questions, i dont have many left
Question 24 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock initially anticipates pricing the shoes at $135 per pair and selling 40,000 pairs. The variable costs to produce one pair are estimated to be: $20 per pair direct materials; $25 per pair direct labor; $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion: $150,000 manufacturing plant manager salary: $300,000 depreciation expense on manufacturing equipment; and $50,000 other miscellaneous fixed costs POSSIBLE ALTERNATIVE PRICING: Birkenstock's marketing team estimates that if they increase the product's price to $150 per pair, they will sell 20% fewer pairs of Big Buckle sandals. What is Birkenstock's expected profit if they increase the selling price? $3,250,000 $3,040,000 $2,490,000 $3,410,000 Question 25 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock initially anticipates pricing the shoes at $135 per pair and selling 40,000 pairs. The variable costs to produce one pair are estimated to be: $20 per pair direct materials; $25 per pair direct labor; $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion; $150,000 manufacturing plant manager salary: $300,000 depreciation expense on manufacturing equipment; and $50,000 other miscellaneous fixed costs POSSIBLE ALTERNATIVE PRICING: Birkenstock's marketing team estimates that if they increase the product's price to $150 per pair, they will sell 20% fewer pairs of Big Buckle sandals. If Birkenstock wants to maximize expected profit, should they continue to price the sandals at $135 per pair or $150 per pair? Birkenstock should price the sandals at $135 per pair. Birkenstock should price the sandals at $150 per pair. Question 26 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock anticipates pricing the shoes at $135 per pair and selling 40,000 pairs. The variable costs to produce one pair are estimated to be: $20 per pair direct materials; $25 per pair direct labor; $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion: $150,000 manufacturing plant manager salary: $300,000 depreciation expense on manufacturing equipment; and $50,000 other miscellaneous fixed costs POSSIBLE INFLUENCER PROMOTION: The marketing team estimates that if Birkenstock spends an additional $25,000 on promotion (via fees to Instagram influencers) per year, they will sell 25% more shoes. To meet this extra demand, Birkenstock would need to purchase additional manufacturing equipment that would lead to $5,000 additional depreciation cost per year. What is Birkenstock's expected profit if they promote via Instagram influencers? $4,000,000 $3,445,000 $3,450,000 $3,420,000 Question 27 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock anticipates pricing the shoes at $135 per pair and selling 40,000 pairs. The variable costs to produce one pair are estimated to be: $20 per pair direct materials: $25 per pair direct labor; $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion: $150,000 manufacturing plant manager salary: $300,000 depreciation expense on manufacturing equipment; and $50,000 other miscellaneous fixed costs POSSIBLE INFLUENCER PROMOTION: The marketing team estimates that if Birkenstock spends an additional $25,000 on promotion (via fees to Instagram influencers) per year, they will sell 25% more shoes. To meet this extra demand, Birkenstock would need to purchase additional manufacturing equipment that would lead to $5,000 additional depreciation cost per year. If Birkenstock wants to maximize expected profit, should they promote via Instagram influencers? No, promoting via influencers will not result in higher expected profit. Yes, promoting via influencers will result in higher expected profit. Question 28 (1 point) Chicago Bread Company shows the following recent monthly costs for employee wages. Chicago Bread Company's employees receive a fixed salary plus hourly compensation for overtime hours. # of Cost of Loaves Employee Produced Wages Month September 16,050 $6,010 October 15,675 $5,980 November 19,425 $6,194 December 20,350 $6,220 January 15,200 $5,911 February 16,025 $5,978 Chicago Bread Company uses the High-Low Method to estimate the variable and fixed cost components of employee wages. What is the variable wage cost per loaf of bread? $0.39 $0.06 $16.67 $0.31 Step by Step Solution
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