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Intellective Task Version of Safe Night Out Episode 1 |
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The Problem
Kris and Sandy want to auction tracking devices that record vehicle speed and route. They expect a selling price of $200 per device. The variable material costs per device are $156. The variable selling costs are $2.50 per item plus 5% of the selling price.
Requirements1. How much profit would each device sold generate? 2. If Kris and Sandy wanted to earn $12,000, how many would they have to sell? 3. If they sold four devices each night: a. How much profit would they make in 30 days? b. How long would it take them to earn $12,000? |
Source: Springer, C. W., and A. F. Borthick. 2004. Business simulation to stage critical thinking in introductory accounting: Rationale, design and implementation. Issues in Accounting Education 19 (2): 277-303. article pdf