Zitchdog is a manufacturer of invi considering two options to compe Option 1: sales personnel are pai by the collars they sell per month Option 2: sales personnel are pai The collars are sold for $40 each.
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- Zitchdog is a manufacturer of invisible fence dog collars. The company is considering two options to compensate its traveling sales personnel: Option 1: sales personnel are paid $6 per collar plus 25% of the revenue generated by the collars they sell per month Option 2: sales personnel are paid a flat $2,000 per month The collars are sold for $40 each. At what level of sales would the company choose Option 2? ○ A. 84 B. 124 OC. 126 O O D. 125 ○ E. There is not enough informationLocust Software sells computer training packages to its business customers at a price of $101. The cost of production (in present value terms) is $99. Locust sells its packages on terms of net 30 and estimates that about 7% of all orders will be uncollectible. An order comes in for 30 units. The interest rate is 1.3% per month. Required: a-1. Calculate the profit or loss if this is a one-time order and sale will not be made unless credit is extended a-2. Should the firm extend credit if this is a one-time order? b. What is the break-even probability of collection? c-1. Now suppose that if the customer pays this month's bill, they will place an identical order in each month indefinitely and can be safely assumed to pose no risk of default.Calculate the present value of the sale. c-2. Should credit be extended? d. What is the break-even probability of collection in the repeat-sales case? Complete this question by entering your answers in the tabs below. Req A1 A2 and Req C1 C2 and в D…Locust Software sells computer training packages to its business customers at a price of $101. The cost of production (in present value terms) is $99. Locust sells its packages on terms of net 30 and estimates that about 7% of all orders will be uncollectible. An order comes in for 30 units. The interest rate is 1.3% per month. Required: a-1. Calculate the profit or loss if this is a one-time order and sale will not be made unless credit is extended a-2. Should the firm extend credit if this is a one-time order? b. What is the break-even probability of collection? c-1. Now suppose that if the customer pays this month's bill, they will place an identical order in each month indefinitely and can be safely assumed to pose no risk of default.Calculate the present value of the sale. c-2. Should credit be extended? d. What is the break-even probability of collection in the repeat-sales case? Complete this question by entering your answers in the tabs below. Req A1 A2 and Req C1 C2 and B D…
- Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $22,000 and earn an additional $4,000 if Highgate achieves $40,000 of cost savings. Leo estimates a 60% chance that Highgate will achieve $40,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?Markson and Sons leases a copy machine with terms that include a fixed fee each month of $400 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $580 for 5,000 copies and $400 for 3,000 copies, how much would Markson pay if it made 8,400 copies? Total cost $ 886 X Feedback V Check My Work For the two listed amounts, find the difference between the highest and lowest amounts each to apply the high low method. The differences between the two highest and lowest amounts from both columns are used to calculate the variable cost per unit using the method. Once that amount is determined, the total costs is made up of the total fixed and variable costs. Apply the variable cost per unit times the number of copies and add in the fixed costs to determine the required amount.GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies. Required: What is the variable cost per copy if GEM uses the high-low method to analyze costs? How much would GEM Ltd pay if it made 7,500 copies? (Hint: Need to solve for Fixed cost)
- Maple Inc. manufactures a product that costs $25 per unit plus $43,000 in fixed costs each month. Maple currently sells 6,000 of these units per month for $47 each. If Maple leased a machine for $12,000 a month, it could add features to the product that would allow it to sell for $53 each. It would cost an additional $9 per unit to add these features. How much would Maple's profit be affected if it leased the machine and added features to its product? Multiple Choice Increase $252,000 Decrease $252,000 Increase $6,000 Decrease $30,000Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chains17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales person receive a monthly salary of P5,000 each and a P5 for every unit sold. The new payment scheme will require the company to pay each sales person a monthly salary of P10,000 and an additional P3 for every unit sold. What is the number of units sold wherein the company will be indifferent between the two payment scheme? OA. 10,000 units OB. 8,571 units O C. 2,500 units OD. None of the above
- Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract ?Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $13.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $11.40. The annual fixed cost for GGN is $15,120. Required: How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. The owner of GGN believes that the company can sell 12,600 chains a year. What is the margin of safety in terms of the number of chains?integrity inc. sells computor training packages to its business customers at a price of $91 the cost of production (in present value term) is $87, integrity sells its packages om term of net 30 and estimated that about 8% of all orders will be uncollectible an oder in for 25 units the interest rate is 0.6% per month given the above information Present value of revenue is? The expected profit from a sale is? If this is a one time Order and the sale will be made unless credit is expected the firm (should not) extend credit the break even probability of collection is ?% No suppose that if a customer pays the months bill it will place an identical order in each month indefinitely and can be safely assume to pose no risk of default in this case since the present value of the perpetuity of profit is? And the present value of sale is ? The credit should be extended the break even point probability of collection in the repeat- sales is