Question
Question 13 (Q14) Rhetorix, Inc., produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $300 and
Question 13 (Q14)
Rhetorix, Inc., produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $300 and the fixed cost per month is $49,000.
- Calculate the contribution margin associated with a pair of speakers.
- In August, the company sold eight more pairs of speakers than planned. What is the expected effect
on profit of selling the additional speakers?
- Calculate the contribution margin ratio for Rhetorix associated with a pair of speakers.
- In October, the company had sales that were $10,000 higher than planned. What is the expected
effect on profit related to the additional sales?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Diversity In Library Collections
Authors: Rosalind Washington, Sarah Voels
1st Edition
1440878749, 978-1440878749
