Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. neptune company produces toys and other items for

Neptune Company produces toys and other items for use in beach and resort areas. A...

70.2K

Verified Solution

Question

Accounting

Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3.40 per unit. Enough capacity exists in the companys plant to produce 30,100 units of the toy each month. Variable expenses to manufacture and sell one unit would be $2.14, and fixed expenses associated with the toy would total $56,389 per month.

The company's Marketing Department predicts that demand for the new toy will exceed the 30,100 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $2,819 per month. Variable expenses in the rented facility would total $2.38 per unit, due to somewhat less efficient operations than in the main plant.

1. How many units must be sold each month to make a monthly profit of $13,158?

2.If the sales manager receives a bonus of 15 cents for each unit sold in excess of the break-even point, how many units must be sold each month to earn a return of 24% on the monthly investment in fixed expenses?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Dumas Method Experiment: In this experiment, we measured a flask with an aluminum foil and elastic band...

Chemistry
Q

Which structure is highlighted O acinar tissue O duct O basement membrane O pancreatic islet

Biology
Q

ewrite n the form 5x 7x 8x 4 5x 2x 1 Question Help Calculator Message...

Calculus
Q

Use the graph of f to estimate the values of c that satisfy the conclusion...

Calculus
Q

Dividends paid to shareholders: a. Are expenses reported on...

Accounting
Q

Seattle, Inc., planned and actually manufactured 260,000 units of its single product in 2020, its...

Accounting
Q

The following gives the number of accidents that occurted on Flonda State Highway 101 during...

Accounting
Q

Oriole Industrial Products Inc. is a diversified industrial-cleaner processing company. The company's Dargan plant produces...

Accounting
Q

Hutto Corp, has set the following standard direct materials and direct labor costs per unit...

Accounting
Q

Ortiz Co.had income from continuing operations of $1,600,000 in 2018. During 2018, it disposed of...

Accounting
Q

Twin Pines Internet Caf (TPIC) was established and incorporated on January 1, 2020, by Marie...

Accounting
Q

Question 1 Why is testing important? Question 2 What are the 4...

Accounting