question 1 homework
Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $47,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $20 per golfer. Rocky Pines golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost - plus approach, what price should the course charge for a round of golf? (Round the final answer to the nearest cent.) O A. $84.10 O B. $70.00 O C. $131.60 O D. $20.00 Click to select your answer. ?Question Help The following information relates to current production of outdoor wicker sofas at Backyard Posh: Variable manufacturing costs per unit $103 Total fixed manufacturing costs $525,000 Variable marketing and administrative costs per unit $34 Total fixed marketing and administrative costs $250,000 The regular selling price per wicker sofa is $320. The company is analyzing the opportunity to accept a special sales order for 300 wicker sofas at a price of $220 per unit. Variable marketing and administrative costs would be $12 per unit lower than on regular sales. Fixed costs would increase by $11,000. The company has the capacity to produce 15,000 wicker sofas per year, but is currently producing and selling 10,000 wicker sofas per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? O A. Decrease by $17,500 O B. Increase by $17,500 O C. Decrease by $28,500 O D. Increase by $28,500 Click to select your answer. ?Question Help Fresco Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: Food Processors Espresso Makers Sales price $145 $235 Variable costs $80 $190 The company can manufacture two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,400 machine hours per month. To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)? O A. 130 Food Processors and 135 Espresso Machines O B. 2,800 Food Processors and 4,200 Espresso Machines O C. 2,800 Food Processors and 0 Espresso Machines O D. 4,200 Espresso Machines and 0 Food Processors Click to select your
