Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Savannah owns a company called Savannah Designs, which makes bracelets with semiprecious stones and sells them at a local market. Savannah currently sells her bracelets

image text in transcribed
image text in transcribed
image text in transcribed
Savannah owns a company called Savannah Designs, which makes bracelets with semiprecious stones and sells them at a local market. Savannah currently sells her bracelets for $175 each and expects to sell 1.000 bracelets per year at this price. Her variable costs per bracelet are the metal and stones (approximately $80 per bracelet) and packaging ($5 per bracelet). She has total annual fixed costs of $9.000, comprised of $8,500 for space at the market and $500 depreciation on display cases and signage. Savannah estimates that if she increases her selling price by 20%, she will sell 25% fewer bracelets. What is Savannah Designs' expected profit if she increases her selling price by 20%? $58,500 $116,000 $93.750 $84.750 Month November December January February # of Centerpieces Produced 4,750 4,220 5,600 3,800 Cost of Employee Wages $36,750 $32,900 $38,400 $31,560 Dahlia's Flower Shop uses the High-Low Method to estimate the variable and fixed cost components of employee wages. What is the VARIABLE wage cost per centerpiece? to $0.26 $3.80 $5.16 $1.78) Month November December January February # of Centerpieces Produced 4,750 4,220 5,600 3,800 Cost of Employee Wages $36,750 $32,900 $38,400 $31,560 Dahlia's Flower Shop uses the High-Low Method to estimate the variable and fixed cost components of employee wages. What is the FIXED monthly wage cost? $17.120 $27,450 $21.280 $14.440

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions