Show work for each problem l. The following table shows the average profit made

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Show work for each problem

l. The following table shows the average profit made by a certain used car company on sales of different types of vehicles during the last two years. Profit made Type Car Price Under SSK S300 S250 II Between $5K and $7.5K S200 III Between $7.5K and $10K S350 IV Between $10K and $12.5K $400 Over $12.5K If in a particular week, the company sold 2,0, 3, 1, and 4 of vehicle types I, II, III, IV and V respectively, determine the total profit that you would expect to be made for that week. (20 points) 2. The following table shows the annual cost and production data for a company making brass deadbolt locks. Material and Parts Cost S1,500,000 Labor Cost S2,000,000 Overhead Cost S2,500,000 Annual Production Quantity 500,000 units If the selling price is determined by adding a 40% mark-up on the total production cost, what should be the selling price per unit? Remember to show your solution procedure A) S16.80 B) S9.80 C) S12.00 D) S14.20 (20 points)

Explanation / Answer

(1)

Total profit = 2 x $300 + 0 + 3 x $200 + 1 x $350 + 4 x $400 = $(600 + 600 + 350 + 1600) = $3,150

(2)

Total production cost = Material + Labor + Overhead

= $(1,500,000 + 2,000,000 + 2,500,000) = $6,000,000

Markup at 40% = $6,000,000 x 40% = $2,400,000

Revenue = Cost + Markup = $(6,000,000 + 2,400,000) = $8,400,000

Selling price per unit = $8,400,000 / 500,000 = $16.80

Correct option (A)

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