18) JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym.

18) ​JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym. The company expects that the new division will be housed in a separate floor and will pay a rent of $20,000 to JinglyGym. Salaries for the developers and a manager will total $400,000. New computers will cost $300,000 and will be depreciated annually at the rate of 10% of cost. Advertising expenses are expected to be $50,000. The cost of producing an app is negligible at 4% of the selling price but Apple’s appstore charges a 30% commission for each app sold. With this data, JingleGym wants you to estimate the contribution margin (CM) and the break-even point (BEP) in dollars for the new division: ​A) ​There is insufficient data to calculate either value​B) ​CM=66%; BEP= $757,576​C) ​CM=34%; BEP= $1,166,667​D) ​CM=66%; BEP = $1,166,667​E) ​CM=34%; BEP = $757,576​

18) JingleGymApp, a new division of JingleGym will be responsible for creating and selling an app version of the very successful JingleGym. The company expects that the new division will be housed…

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