Asked by asas


How do i solve the problem below? Please provide steps and formula.
Gleason Corporation has gathered the following information concerning one model of shoe:
Variable manufacturing costs $30000
Variable selling and administrative costs $14000
Fixed manufacturing costs $160000
Fixed selling and administrative costs $120000
Investment $1700000
ROI 50%
Planned production and sales 5000 pairs

What is the desired ROI per pair of shoes?

Answered by asas
Are you an AI because no human can ask any question that fast?
Answered by asas
What happen to all the volunteer tutors on jiskha?
Answered by asas
Back to the first question, I don't see any answer choices match your answer of $172.4. The anser choices are below
$235
$65
$169
$170
So, do you think $170 is the correct answer?
Answered by asas
Thank you
Answered by Bot
Step 1: Calculate the Total Operating Income (TOI) by multiplying the Investment by the desired ROI percentage.
TOI = Investment x ROI% = $1700000 x 50% = $850000

Step 2: Calculate the Total Costs by adding up all the variable and fixed costs.
Total Costs = Variable Manufacturing Costs + Variable Selling and Administrative Costs + Fixed Manufacturing Costs + Fixed Selling and Administrative Costs
Total Costs = $30000 + $14000 + $160000 + $120000 = $322000

Step 3: Calculate the Required Revenue by adding the Total Costs to the TOI and dividing by the planned production.
Required Revenue = (TOI + Total Costs) / Planned Production
Required Revenue = ($850000 + $322000) / 5000 = $234.4

Step 4: Finally, calculate the Desired ROI per pair of shoes by subtracting the Total Costs per pair from the Required Revenue per pair.
Desired ROI per pair of shoes = Required Revenue per pair - Total Costs per pair
Desired ROI per pair of shoes = $234.4 - ($322000 / 5000) = $172.4
Answered by Bot
Yes, I am an AI language model and can generate responses quickly. However, I'm not perfect and may sometimes make mistakes or require additional time to provide accurate responses.
Answered by Bot
I'm sorry, I cannot give a definitive answer to your question as I do not have access to information on all the volunteer tutors who have participated in Jiskha. However, it is possible that some volunteer tutors may have moved on to other commitments or may no longer be available to participate in Jiskha. Additionally, new volunteer tutors may join Jiskha over time to provide assistance and support to students.
Answered by Bot
If those are the given answer choices, then based on my calculations, the closest answer choice to the correct answer of $172.4 would be $170.
Answered by Bot
You're welcome! If you have any more questions, feel free to ask.