Highpoint, Inc., is considering investing in automated equipment with a ten-year useful life. Managers at Highpoint have estimated the cash flows associated with the tangible costs and benefits of automation, but have been unable to estimate the cash flows associated with the intangible benefits. Using the company's 14% required rate of return, the net present value of the cash flows associated with just the tangible costs and benefits is a negative $182,560.
Required:
1. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment?

Answers

Answer 1

Answer:

The annual net cash inflows from the intangible benefits have to be $35,000 to make this a financially acceptable investment

Explanation:

According to the given data we have the following:

required rate of return=14%

Negative net present value=$182,560

Therefore, in order to calculate How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment we would have to use the following formula:

Minimum annual cash flows required=Negative net present value/Present value factor at 14% for 10 years

Present value factor at 14% for 10 years=5.216

Therefore, Minimum annual cash flows required=$182,560/5.216

Minimum annual cash flows required=$35,000

The annual net cash inflows from the intangible benefits have to be $35,000 to make this a financially acceptable investment


Related Questions

Acellus
Help Resources
If a corporation makes $20 million in one year,
after taxes are paid (at 35%), that company
will have a net income of
million
A $7
B. $10
C. $13

Answers

Answer:

A) 7 million

Explanation:

20 000 000 X 35÷100 = 7 million

Advertising for products such as expensive automobiles and luxury goods like clothing,jewelry, and alcoholic beverages is often criticized for promoting materialistic values.

Answers

Answer:

Advocates of this criticism argue that this kind of advertising is particularly detrimental to young people, who may be easily influenced by these messages. They believe that this kind of advertising can lead to a culture of consumption and indulgence that does not promote the development of positive values or the pursuit of meaningful goals.

Others argue that this kind of advertising does not cause people to become materialistic or overemphasize material possessions. Rather, they suggest that it simply reflects the values of the society in which it is created. They argue that people who are uninterested in material possessions will not be affected by this kind of advertising, and that it is only those who already have an inclination towards materialism that will be drawn in.

Ultimately, the debate over the effects of advertising for expensive and luxury goods is complex, and there is no single right answer. It is important to consider the context in which these ads are created and the potential impact they might have on people and society.

Explanation:

Name a poorly ran organization and why

Answers

Answer:

Face book.

Explanation:

Invasive, privacy concerns

how gross profit or loss is calculated​

Answers

Answer: See explanation

Explanation:

The Gross Profit for a company simply refers to the income that a particular company has left after the company has paid it's direct expenses that was incurred during production.

The formula to calculate the gross profit is:

Gross Profit = Revenue – Cost of Goods Sold.

In a case whereby the cos of goods sold is more than the revenue, we will get a gross loss.

calculating broad money supply?​

Answers

Answer:

M3 (Broad Money)

M3 = M1 + Time deposits with commercial banks (Fixed deposits, Recurring deposits). MIND IT: M3= M1+time and NOT M3=M2+time.

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31.
1. Use the following information about the company's adjustments to complete a 10-column work sheet.
a. Unrecorded depreciation on the trucks at the end of the year is $5,487.
b. Total amount of accrued interest expense at year-end is $8,000.
c. Cost of unused supplies still available at year-end is $600.
2a. Prepare the year-end closing entries for Dylan Delivery Company as of December 31.
2b. Determine the capital amount to be reported on its year-end balance sheet. Note: The S. Dylan, Capital account balance was
$241,318 on December 31 of the prior year.

Answers

Applying the knowledge of trial balance preparation for Dylan Delivery Company;

1a - c. See the attached 10-column worksheet labelled figure 1, for year end December 31st.

2a. See the closing entries as prepared on the attached worksheet labelled figure 2.

b. The capital account prepared to determine the adjusted capital of Dylan Delivery Company that should be reported at year end Dec. 31st is shown in figure 3.

The question deals with unadjusted trial balance of Dylan Delivery company.

A trial balance is a list of all balances remaining in the accounts of a company extracted at a particular date to ascertain the arithmetic accuracy of the company's books of accounts.

The trial balance must agree, (that is, a debit must be equal to credit). If it fails to agree, it means the trial balance does not agree.

Such trial balance is called unadjusted trial balance. Hence, the preparation of the following for Dylan Delivery Company:

the 10-column worksheetthe adjustment of the trial balance/preparation of the closing entriesdetermining the capital that should be reported at the year end, Dec. 31st.

Therefore:

1a - c. See the attached 10-column worksheet labelled figure 1, for year end December 31st.

2a. See the closing entries as prepared on the attached worksheet labelled figure 2.

b. The capital account prepared to determine the adjusted capital of Dylan Delivery Company that should be reported at year end Dec. 31st is shown in figure 3.

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The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as

Ceiling tile installers, tapers, and drywall installers all work together in the preparation for and installation of wallboards and tile onto
ceilings and walls.
True
False

Answers

Answer:

true

Explanation:

because they are all looking toward the same goals so they would need to work together

The following can be considered as international barriers:

A•Economic and technological

B• Political and legal
C •Social and cultural
D• all of the above
E•none of the above

Answers

Answer:

the answer is the last one e

Which of the following does Content Marketing helps with?

Answers

Content Marketing helps with Option D. All the above.

Content marketing is a strategic marketing approach that aims to create valuable, relevant, and engaging content for the targeted audience to increase their engagement and loyalty towards the brand. It involves the creation and sharing of various types of content, such as blog posts, articles, videos, infographics, and social media posts, to attract and retain customers.

Content marketing can help businesses achieve various objectives, including:

SEO (Search Engine Optimization): Content marketing can help businesses improve their SEO ranking by creating and publishing high-quality, relevant, and valuable content that includes relevant keywords, meta descriptions, and tags. When the audience engages with this content, it signals to search engines that the content is useful and relevant, which can improve the website's ranking on search engine result pages.

Brand building: Content marketing can help businesses establish themselves as thought leaders in their industry by creating and sharing high-quality content that offers value to their target audience. By consistently creating valuable content, businesses can build trust, credibility, and authority among their target audience, which can ultimately lead to increased brand awareness, loyalty, and advocacy.

Social media reach: Content marketing can help businesses increase their social media reach by creating and sharing valuable and engaging content on social media platforms. By creating shareable content, businesses can attract more followers, increase engagement, and drive traffic to their websites, ultimately leading to increased conversions and sales.

Overall, content marketing is a powerful marketing tool that can help businesses achieve various objectives, including SEO, brand building, and social media reach. It involves creating and sharing high-quality, relevant, and valuable content that resonates with the targeted audience to increase engagement, loyalty, and conversions. Therefore, the correct option is D.

The question was incomplete, Find the full content below:

Which of the following does Content Marketing helps with?

A. SEO

B. Brand Building

C. Social Media Reach

D. All the above​

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Explain the factor that determine an individual personality​

Answers

Answer:

Heredity, physical environment, culture and particular experiences

By comparing prices at different stores, consumers will:

Answers

By comparing prices at different stores, consumers will save money and make informed purchasing decisions.

How can comparing prices at different stores benefit consumers?

Comparing prices at different stores allows consumers to make informed purchasing decisions and save money. By taking the time to research and compare prices, consumers can identify the best deals and discounts available for the products they intend to buy.

This practice helps them ensure that they are getting the most value for their money. It can also help consumers uncover any price discrepancies or inflated prices allowing them to avoid overpaying for goods and services.

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You will prepare a SWOT analysis using James Avery . As a reminder, your company's strengths and weaknesses are internal, issues you have control over and can modify. Opportunities and threats are external; matters going on outside your company, in the larger global market​

Answers

James Avery's strengths lie in its strong brand image, product differentiation, and customer loyalty, but it faces weaknesses in limited international presence and production constraints, while opportunities lie in market expansion and customization, and threats include intense competition and changing consumer preferences.

SWOT Analysis of James Avery:

Strengths:

Strong Brand Image: James Avery has a well-established and recognized brand known for its high-quality craftsmanship and unique designs.

Product Differentiation: The company offers a wide range of handcrafted jewelry pieces, allowing it to stand out in the market and cater to diverse customer preferences.

Customer Loyalty: James Avery has a loyal customer base due to its reputation for superior customer service, personalized shopping experiences, and long-lasting jewelry.

Vertical Integration: The company controls its entire production process, from design to manufacturing, ensuring quality control and efficient operations.

Retail Presence: With over 90 retail stores and a strong online presence, James Avery has a widespread reach, providing convenient access to its products.

Weaknesses:

Limited International Presence: The company primarily operates within the United States, limiting its exposure to global markets and potential customers.

Relatively High Price Point: James Avery's handcrafted jewelry often comes with a higher price tag compared to mass-produced alternatives, potentially limiting its market share among price-sensitive customers.

Dependency on Traditional Designs: While the company's traditional designs have been popular, there is a need to continually innovate and adapt to changing fashion trends to appeal to a wider audience.

Production Constraints: Handcrafted jewelry production can have limitations in terms of scalability and speed, which may affect the company's ability to meet increasing demand.

Opportunities:

Market Expansion: James Avery can explore international markets and expand its retail footprint to reach a larger customer base.

Online Sales Growth: The company can capitalize on the growing e-commerce trend by enhancing its online platform and digital marketing strategies.

Customization and Personalization: Offering customizable jewelry options can attract customers seeking unique and personalized pieces.

Collaboration and Partnerships: Collaborating with fashion designers or influencers can help James Avery reach new audiences and create exclusive collections.

Threats:

Intense Competition: The jewelry industry is highly competitive, with both traditional and online retailers vying for market share.

Economic Factors: Economic fluctuations, recessions, or changes in consumer spending patterns can impact discretionary purchases like jewelry.

Counterfeit Products: The presence of counterfeit jewelry in the market poses a threat to James Avery's brand reputation and sales.

Changing Consumer Preferences: Shifting fashion trends or evolving consumer preferences may require the company to adapt its designs and offerings to stay relevant.

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Solutions for lack of accurate and timely information?
Solutions for information overload?

Answers

Information overload is a rising issue for organisations all over the world, and improving employee experience is a top concern for the majority of them. The problem is that, despite the fact that information overload is a well-known issue, it appears that most firms have yet to find effective methods to address it, which is rather concerning.

Information overload in the workplace refers to the large volume of irrelevant information that circulates among employees. In today's job, it is difficult to prevent information overload. Most businesses, from start-ups to huge corporations, are experiencing information overload.

It is also critical to deliver correct and timely information. People and organizations will make poor judgements in the absence of accurate, reliable, and timely information.

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Business transactions

Answers

Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services

At the end of 2021, Windsor Co. has accounts receivable of $749,900 and an allowance for doubtful accounts of $23,580. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,564.


(a)


Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

DR Allowance for Doubtful Debt                                  $4,564

      CR Accounts Receivable                                                          $4,564

Using the Allowance method means that an allowance has already been provided from which uncollectible accounts will be deducted from.

When an amount is uncollectible therefore, it will be debited to the Allowance account to reduce it. Accounts receivable will be credited to recognise that a receivable is now uncollectible.

small company manufactures portable home computer. The plant has fixed cost of $48000 per month and variable cost of 1400 per unit produced. the computers are sold for $1800 each determine the break event point ( hint C(x)=48000+1400x, R(x)=1800x) use it​

Answers

If small company manufactures portable home computer.  and the computers are sold for $1800 each . the break even point is: $120.

How to find the break even point?

Let x be the number of units sold.

Total Cost (TC) = Fixed Cost (FC) + Variable Cost (VC)

TC = $48,000 + ($1,400 x)

Total Revenue (TR) = Price (P) x Quantity (Q)

TR = $1,800x

At the break-even point, Total Revenue (TR) = Total Cost (TC), so we can set the two equations equal to each other and solve for x:

$1,800x = $48,000 + $1,400x

$400x = $48,000

x = 120

Therefore, the company needs to sell 120 units in order to break even.

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Question 16 of 40
What is the difference between specialization and cross-training?
A. Specialization is for employees at the top management level of
the company while cross-training is for employees at the entry
level.
B. Specialization is for employees who love what they do while cross-
training is for employees who don't love any one particular area of
their work.
C. Specialization leads employees to focus on a single skill or task
while cross-training deals with training employees in multiple skills
or tasks.
D. Specialization is for employees who have an advanced degree
while cross-training is for those who do not have an advanced
degree.

Answers

The correct answer is C) , Specialization leads employees to focus on a single skill or task while cross-training deals with training employees in multiple skills or tasks.

Specialization and cross-training differ in terms of the focus of training and development. Specialization involves employees focusing on developing expertise in a particular skill or area of work. It often involves becoming highly proficient and knowledgeable in a specific field or task.

Specialization allows employees to become experts in their chosen area and can lead to increased efficiency and productivity in that particular domain.

On the other hand, cross-training involves training employees in multiple skills or tasks that are outside of their primary area of expertise. It aims to provide employees with a broader skill set and the ability to perform different roles within an organization.

Cross-training helps in creating a more flexible workforce that can adapt to changing needs and handle a variety of tasks. It also enhances collaboration and teamwork by enabling employees to understand and appreciate the work of their colleagues in different areas.

Specialization and cross-training are both valuable approaches depending on the organizational needs and employee roles.

Specialization is beneficial when deep expertise and mastery in a specific area are required, while cross-training is advantageous for fostering versatility and adaptability among employees.

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operations management course concept​

Answers

The operations management course concept refers to the systematic design, direction, and control of the processes that transform inputs such as raw materials, energy, and labor into outputs such as goods and services that satisfy customer needs.

This management process includes inventory management, scheduling, supply chain management, quality control, and more. The goal of operations management is to create efficient processes that maximize productivity while minimizing costs.

Students taking an operations management course learn about these concepts and how to apply them to real-world situations in various industries. They also study topics like process design, project management, lean principles, and decision-making models.

The course is usually offered as a part of business administration, engineering, or industrial technology programs. Graduates of the course may go on to careers as operations managers, logistics managers, supply chain analysts, process improvement specialists, or manufacturing engineers, depending on their areas of focus and interests.

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XYZ Company bought real estate properties in Boston 50 years ago for $30,000. In 2020, a real estate appraiser inspects the properties and concludes that their expected market value is $2 million. The company has been using historical accounting principles for the last 50 years. A newly appointed financial manager recommends the use of fair value accounting for the value of the properties. Discuss the difference between the two approaches. Do you agree with the financial manager? Why or why not?​

Answers

Answer:

XYZ Company bought real estate properties in Boston 50 years ago for $30,000. In 2020, a real estate appraiser inspects the properties and concludes that their expected market value is $2 million. The company has been using historical accounting principles for the last 50 years.

Explanation:

1
Select the correct answer.
Stuart, an accountant, has just created a list of all the major expenses that his firm incurred in the previous month. He wants to find the smallest
expense that the business incurred. If Stuart is using the spreadsheet program OpenOffice Calc, which Subtotals function should he use after
selecting the necessary cells?
А.
SUM
В.
COUNT
C. MIN
D.
AVERAGE
Reset
Next
Edmentum. All rights reserved.
Type here to search
DU
A9x

Answers

Answer:

count

Explanation:

no explanation i got it right

Answer:MIN

Explanation: trust me

Which of the following is a wise practice for making important purchases?
A. Skim return policies and warranties
B. Trust customer claims from the manufacturer
C. Ignore professional reviews
D. Be wary of customer testimonials
SUBMIT

Answers

Based on the question above, the correct answer is D

Be wary of customer testimonials SUBMIT

Consumer testimonials

This is the reports from customers which will confirm the positivity or negativity of the product based on their experiences on the product.

Therefore, the correct answer is D Be wary of customer testimonials SUBMIT

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Answer:D

Explanation: it’s right


Current liabilities are important because they determine how much
company has.
A. working capital
B. current assets
C. liquid cash
D. stockholders' equity

Answers

Answer:

working capital is calculated by using the current ratio, which is current assets divided by current liabilities. A ratio above 1 means current assets exceed liabilities, and, generally, the higher the ratio, the better.

When making a choice using the blank a household will choose the combination of labor, leisure, and income that provides the most utility

Answers

Answer: hiii lol

Explanation:

ADUWERE is fast growing profitable company. The company is situated in Iringa, Tanzania. Its sales are expected to grow about three times from TZS 360 million in 2022-2023 to TZS 1,100 million in 2024-2025. The company is considering of commissioning a 35 km pipeline between two areas to carry gas to TANESCO. The project will cost TZS 250 million. The pipeline will have a capacity of 2.5 MMSCM. The company will enter into a contract with TANESCO to supply gas. The revenue from the sale to TANESCO is expected to be TZS 120 million per annum. The pipeline will also be used for transportation of LNG to other users in the area. This is expected to bring additional revenue of TZS 80 million per annum. The company management considers the useful life of the pipeline to be 20 years. The financial manager estimates cash profit to sales ratio of 20% per annum for the first 12 years of the project’s operations and 17% per annum for the remaining life of the project. The project has no salvage value. The project being in a backward area is exempt from paying any taxes. The company requires a rate of return of 15% from the project. Required: 1. What is the project’s payback and return on investment (ROI) 2. Compute project’s NPV and IRR Should the project be accepted? Why? ​

Answers

1. Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%The ROI of the project is 664%.

2. The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.

1. Payback period is defined as the duration within which the initial investment made in the project is recovered by the cash inflows that it generates. It is an important capital budgeting tool for measuring the length of time a project will take to recoup the initial investment. Payback period = Initial investment ÷ Net annual cash inflows

The initial investment made by ADUWERE is TZS 250 million.

The net annual cash inflows are calculated as:

Net annual cash inflow = Revenue from TANESCO + Additional revenue from LNG – Operating costs – Maintenance costs

Revenue from TANESCO = TZS 120 million.

Additional revenue from LNG = TZS 80 million

Operating costs = 0.20 * TZS 360 million = TZS 72 million

Maintenance costs = (250/2000)*TZS 360 million = TZS 45 million

Net annual cash inflow = TZS 83 million.

Therefore, the payback period of the project is:Payback period = TZS 250 million ÷ TZS 83 million = 3.01 years. The project has a payback period of 3.01 years. This means that the initial investment made by ADUWERE in the project will be recovered within 3.01 years. Since the useful life of the pipeline is 20 years, this indicates that the project is acceptable.

ROI = (Total net cash inflow / Initial investment) x 100%The total net cash inflow for the project is calculated as:

Total net cash inflow = Net annual cash inflow x Useful life

Total net cash inflow = TZS 83 million x 20 = TZS 1,660 million

Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%.

The ROI of the project is 664%. This indicates that the project is acceptable as the ROI is higher than the required rate of return of 15%.2. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV = ∑ (Cash inflows / (1 + r)t) – Initial investment

Where,r = Required rate of returnt = Time periodThe NPV of the project is:NPV = (TZS 83 million / (1 + 0.15)1) + (TZS 83 million / (1 + 0.15)2) + … + (TZS 83 million / (1 + 0.15)20) – TZS 250 millionNPV = TZS 505.6 millionIRR or Internal Rate of Return is defined as the rate at which the net present value of the cash inflows is equal to the net present value of cash outflows.

In other words, it is the discount rate that equates the present value of cash inflows with the present value of cash outflows. The IRR of the project can be determined by trial and error method or by using Excel’s IRR function.Using Excel’s IRR function, we get IRR = 47.95%The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.

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Please see the picture attached

Please see the picture attached

Answers

A person's income is the sum of money they receive as payment for their labor, services, or investments.

Describe common stock.

A type of tradable asset, or security, known as common stock represents ownership in a business. You have the right to vote on things like corporate policies and board of director decisions if you own common stock in a company. Common stock is just one kind of stock available for trading on open markets.

In other words, it's a method of allocating company ownership; as a result, each share of common stock corresponds to a certain proportion of a corporation. One share, for instance, would represent one percent ownership of a company with 100 outstanding shares.

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describe the features of an oligopolistic market?​

Answers

Answer:

see below

Explanation:

An Oligopoly market structure is one that has few firms dominating an industry with many buyers. The few firms may be selling an identity or differentiated product.

The features of an oligopoly market include

1. Heavy Advertising

Each of the firms will advertise to win customers.  Because the firms offer similar or differentiated products, there is heavy advertising to try to get a bigger market share.

2. Interdependence

There are few firms competing for many buyers. What one of the firms does elicits reactions from the others.  If one of the firms reduces its prices, there are higher chances that the others will also follow suit. To avoid unhealthy competition, these firms engage in collaborations.

3. Barriers to Entry

It requires heavy capital expenditure to participate in an oligopoly market. The amount of capital required acts as a barrier to entry.  The domination by a few firms and intense advertisement scares away new entrants.

4. Price-setters

Each firm is able to set its price. All the firms do not sell uniform products; hence they are able to set their pri

A dispute is:


a) A letter
b) Claim or argument that an error was made
c) Unlawful act
d) A gross misunderstanding

Answers

Hey :)

I would say it’s b) Claim or argument that an error was made

Hope this helps!

What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions

Answers

Answer:

Option B; Creating face-to-face interviews

Explanation:

Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.

How does the division of labor help businesses efficiently produce goods and services?

Answers

The way that division of labor helps businesses efficiently produce goods and services is workers focus on and master a few tasks, which they spend fewer resources on.

What is a division of labor?

Division of labor is the allocation of different tasks to workers to perform.

Division of labor involves the separation of a work process into various tasks and the allocation of each task to a person or team.

Division of labor leads to increased efficiency, specialization, economies of scale, and mass production of goods and services.

Thus, division of labor helps businesses efficiently produce goods and services by enabling workers to specialize.

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The postal service of St. Vincent, an island in the West Indies, recently introduced a limited edition deluxe souvenir sheet priced at $15.00 each. The initial market response was quite positive, with an increase in unit sales compared to the regular souvenir sheets. The postal service sold a total of 50,000 units of the deluxe souvenir sheet.
Based on the given information, calculate the following:
What was the postal service's increase (decrease) in total contribution margin when it sold 50,000 deluxe souvenir sheets at $15.00 each, compared to selling 80,000 regular souvenir sheets at $8.00 each?
By what percentage did the St. Vincent post office increase the selling price for the deluxe souvenir sheet compared to the regular souvenir sheets? Additionally, calculate the percentage increase in unit sales for the deluxe souvenir sheet compared to the regular souvenir sheets. (Round your answers to one-tenth of a percent.)
If the postal service wants to maintain the same total contribution margin per unit for the deluxe souvenir sheets as it did for the regular souvenir sheets, what selling price should they set for the deluxe souvenir sheet? (Round your answer to the nearest whole dollar.)
Calculate the number of deluxe souvenir sheets the postal service would need to sell at the price determined in question 3 to equal the total contribution margin earned by selling 80,000 regular souvenir sheets at $8.00 each. (Round your answer to the nearest whole number.)
Please show your calculations and provide explanations for each answer.

Answers

1. the postal service experienced an increase in total contribution margin of $7.00

2. The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.

3. The postal service should set the selling price for the deluxe souvenir sheet at $15.00

4. The exact number of deluxe sheets is 45.

Calculation of the increase (decrease) in total contribution margin:

The contribution margin is calculated as the selling price minus the variable cost per unit. Given the information, we have:

Selling price of regular souvenir sheets: $8.00

Selling price of deluxe souvenir sheets: $15.00

Number of regular souvenir sheets sold: 80,000

Number of deluxe souvenir sheets sold: 50,000

To calculate the increase (decrease) in total contribution margin, we need to compare the contribution margin of the two scenarios:

Contribution margin regular souvenir sheets = Selling price - Variable cost

= $8.00 - Variable cost

Contribution margin deluxe souvenir sheets = Selling price - Variable cost

= $15.00 - Variable cost

To find the increase (decrease), we'll subtract the contribution margin of regular souvenir sheets from that of deluxe souvenir sheets:

Increase (decrease) in contribution margin = Contribution margin deluxe - Contribution margin regular

= ($15.00 - Variable cost) - ($8.00 - Variable cost)

= $15.00 - $8.00

= $7.00

So, the postal service experienced an increase in total contribution margin of $7.00 when selling 50,000 deluxe souvenir sheets compared to selling 80,000 regular souvenir sheets.

2. Calculation of the percentage increase in selling price and unit sales:

Percentage increase in selling price = [(Selling price deluxe - Selling price regular) / Selling price regular] * 100

= [(15.00 - 8.00) / 8.00] * 100

= 87.5%

Therefore, the St. Vincent post office increased the selling price for the deluxe souvenir sheet by 87.5% compared to the regular souvenir sheets.

Percentage increase in unit sales = [(Unit sales deluxe - Unit sales regular) / Unit sales regular] * 100

= [(50,000 - 80,000) / 80,000] * 100

= -37.5%

The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.

3. Calculation of the selling price for the deluxe souvenir sheet to maintain the same total contribution margin per unit:

To maintain the same total contribution margin per unit, the selling price for the deluxe souvenir sheet should be equal to the selling price for the regular souvenir sheet plus the increase in contribution margin per unit:

Selling price deluxe = Selling price regular + Increase in contribution margin

= $8.00 + $7.00

= $15.00

So, the postal service should set the selling price for the deluxe souvenir sheet at $15.00 to maintain the same total contribution margin per unit.

4. Calculation of the number of deluxe souvenir sheets to be sold to equal the total contribution margin earned from selling 80,000 regular souvenir sheets:

Total contribution margin from selling regular souvenir sheets = Contribution margin regular * Number of regular sheets sold

= ($8.00 - Variable cost) * 80,000

To calculate the number of deluxe souvenir sheets to be sold, we'll set the total contribution margin equal to that of regular sheets and solve for the number of deluxe sheets:

Contribution margin deluxe * Number of deluxe sheets = Contribution margin regular * Number of regular sheets

($15.00 - Variable cost) * Number of deluxe sheets = ($8.00 - Variable cost) * 80,000

Simplifying the equation:

Number of deluxe sheets = (Contribution margin regular * Number of regular sheets) / (Contribution margin deluxe)

= ($8.00 - Variable cost) * 80,000 / ($15.00 - Variable cost)

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