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TM sold catchers mitts @ $98 per glove. Variable costs are as follows: Direct materials $29 Direct Labor $17 Variable Overhead $22 Fixed Costs were
TM sold catchers mitts @ $98 per glove. Variable costs are as follows: Direct materials $29 Direct Labor $17 Variable Overhead $22 Fixed Costs were $300,000. TM is considering 2 alternatives to Increase sales: Alternative 1 is to acquire the materials for the catcher's mitts from a Chinese Importer at $25 per unit, but it will increase fixed costs by $20,000. Alternative 2 is a new marketing campaign that will increase the fixed costs by $30,000 but it will allow TM to raise the selling price of the catcher's mitts to $102. Which alternative is better? Multiple Choice alternative 1 alternative 2 both alternatives provides the same result can't be determined TM sold catchers mitts @ $98 per glove. Variable costs are as follows: Direct materials $29 Direct Labor $17 Variable Overhead $22 Fixed Costs were $300,000. TM is considering 2 alternatives to Increase sales: Alternative 1 is to acquire the materials for the catcher's mitts from a Chinese Importer at $25 per unit, but it will increase fixed costs by $20,000. Alternative 2 is a new marketing campaign that will increase the fixed costs by $30,000 but it will allow TM to raise the selling price of the catcher's mitts to $102. Which alternative should be selected? Multiple Choice both alternatives are good decisions alternative 1 alternative 2 none of the alternatives is a good decision A firm expects to sell 25,000 units of its product at $11 per unit. Pretax Income is predicted to be $60,000. If the variable costs per unit are $4, total fixed costs must be: Multiple Choice O $65.000. $90.000 $115,000. O O $215,000. 0 $275.000
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