1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreev551 [17]
3 years ago
7

Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to mak

e. During March, 1,000 drives were sold. Fixed costs for March were $5.60 per unit for a total of $5,600 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene?
Business
1 answer:
kodGreya [7K]3 years ago
4 0

Answer:

The break even level of units per month fall by 16 units.

Explanation:

The current breakeven units per month are,

Break even in units = 5600 / (20 - 6)  

Break even in units-March = 400 Units

The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.

The new variable costs will be 6 * 0.9 = $5.4

Assuming everything else remains constant,

The new break even in units per month = 5600 / (20 - 5.4)

New break even in units = 383.56 rounded off to 384 units

As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.

You might be interested in
The American economy consists of a complex combination of organizations and variables, such as countless companies differing in
Jlenok [28]

Answer:

The correct answer is The Theory of complexity.

Explanation:

The Theory of Complexity and Organizations, also called complexity strategy or adaptive complex organization, is the use of complexity theory in the field of strategic management and organizational studies.

The complexity theory has been used in the fields of strategic management and organizational studies. Areas of application include an understanding of how organizations or companies adapt to their environment and how they deal with situations of uncertainty. The theory treats organizations and companies as collections of strategies and structures. The structure is complex, because they are dynamic networks of interactions, and their relationships are not the result of the aggregation of individual static entities. They are adaptive; Because individual and collective behaviors mutate and organize themselves in response to the initial changes of micro events or the total set of events.

7 0
3 years ago
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,00
lana [24]

Answer:

$2,100

Explanation:

Particulars                     Fair market value      Basis        Differences

Inventory                             $60,000              $30,000       $30,000

Account receivables           $40,000              $40,000       $0

Equipment                           $60,000              $80,000      <u> ($20,000)</u>

Taxable gain                                                                           $10,000

Tax rate                                                                                   <u>   21%    </u>

Built in gains tax                                                                     <u>$2,100  </u>

So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.

3 0
3 years ago
​Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety
Paha777 [63]

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

6 0
3 years ago
The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The fir
stich3 [128]

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

6 0
3 years ago
Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurr
sladkih [1.3K]

Answer & Explanation:

Req. A

Journal Entries

a. Debit        Inventory           $250,000

  Credit                Cash                           $90,000

  Credit                Accounts payable     $160,000

Note: Purchase of raw materials with cash and on account.

b. Debit        Wages expense   $184,000

  Credit                 Cash                          $180,300

  Credit                  Wages payable        $3,700

Note: Total salary (180,300 + 3,700)= 184,000 usd. 180,300 were charged over the course of the year, $3,700 only being compensated, thereby the responsibility (salaries payable).

c. Debit        Cash                            $500,000

  Debit        Accounts receivable  $250,000

  Credit                 Sales revenue            $750,000

Note: Offer cash and on account to consumers pillows.

Since the company is a sales business, the expense of the products sold must be registered.

Debit       Cost of goods sold      $485,000

Credit               Inventory                           $485,000

d. Debit      Utilities expense       $17,200

  Credit                   Cash                           $17,200

e. Debit     Cash                             $70,000

  Credit                    Unearned revenue       $70,000

Note: If the service is done in the future and cash is earned now, taxes are reported on an accrual basis as earned, not when the service is conducted.

f. Debit      Utilities expense        $1,930

 Credit           Utilities payable                      $1,930

Note: As it is unpaid, a liability will arise.

Req. B

Accrual accounting framework provides owners, borrowers and other consumers with more accurate and powerful knowledge. This shows distinctly the savings, profits and obligations of the company against its internal and external employees. Owing to the fact that all documents (whether charged or not) were kept independently under an accrual accounting.

5 0
3 years ago
Other questions:
  • Berning Company purchased a tractor at a cost of $540,000. The tractor has an estimated salvage value of $60,000 and an estimate
    5·1 answer
  • Determine Digby's current strategy. How will they seek a competitive advantage? From the following list, select the top five sou
    5·1 answer
  • T or f a counteroffer does not terminate but continues an offer.
    9·1 answer
  • You are starting the four-year college education today, and you are worried if you have enough money in your account for tuition
    10·1 answer
  • Last year, Barnard Company incurred the following costs: direct materials, $50,000; direct labor, $20,000; manufacturing overhea
    13·1 answer
  • Efficiency is:
    12·1 answer
  • If psychologists find that rich people are less satisfied with their jobs compared to poor people, this would mean that wealth a
    6·1 answer
  • Language _____ means that your audience immediately recognizes and understands your word choices. clarity appropriateness correc
    14·1 answer
  • Identify the following costs as fixed or variable:
    11·1 answer
  • Which scheme involves telling victims that certain financial instruments have been issued by legitimate organizations, and that
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!