Exercises:5.Lasse has an ice-cream stall. The budgeted costs for the following year are asfollows:- material (ice-cream, chocolate...)- rent- salaries- depreciation- interest- other overheads45 00023 32079 3005 4006 1002 900a)How much is the overhead rate (without profit)?b)How much is the overhead rate, if the expected profit for the followingyear is 10 000 euros?c)How much should the price of an ice-cream serving be, if the direct costsare 1,20 euros. Use the overhead rate of b)?

Given Data:Material (ice-cream, chocolate, etc.): 45,000 eurosRent: 23,320 eurosSalaries: 79,300…

Answered: Exercises: 5.Lasse has an ice-cream…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Finance A computer company has a monthly advertising budget of $60,000. Your sales department estimates that if x dollars are spent each month in newspaper advertising and and dollars each month in television advertising, the monthly sales will be given in dollars. If the utility is 10% of sales less the cost of advertising; determines how to assign the advertising budget to maximize production. Solve it with Lagrange Multipliers

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