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Sagot :
Answer:
The answer is "$4,000 and $2,500"
Explanation:
Formula:
[tex]\text{Profit = Sales - Total cost}[/tex]
[tex]= \frac{\text{Selling price}}{unit} \times \text{volume of Sale} - ( \text{Fixed cost} + \frac{\text{Variable cost}}{unit} \times \text{volume of Sale})[/tex]
[tex]= 1.20 \times 30000 - ( 14,000 + 0.6 \times 30,000)\\\\= 36,000 -( 14,000 + 18,000)\\\\= 36,000 - 14,000 - 18,000 \\\\= 36,000 - 32,000 \\\\= \$ 4,000[/tex]
The scenario was revised by installing new audio connection equipment:
The volume of revised sales[tex]= 50,000[/tex]
Fixed cost updated [tex]= \$ 41,000 + \$ 6,000 = \$ 20,000[/tex]
Cost of the updated component [tex]= \frac{\$ 0.75}{unit}[/tex]
Unchanged purchase price/unit [tex]= \frac{\$ 1.2}{unit}[/tex]
[tex]= 1.2 \times 50,000 -(20,000 + 0.75 \times 50,000)\\\\= 60,000 -(20,000 + 37,500)\\\\= 60,000 -(57,500)\\\\= 60,000 -57,500 \\\\ =2,500[/tex]
Audio cable sales are actually profiting = 4,000
Proposal for audio cable sales profit = 2,500
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