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
Svetradugi [14.3K]
3 years ago
11

If fixed costs are $400,000 and the unit contribution margin is $20, how many units must be sold in order to realize an operatin

g income of $250,000
Business
1 answer:
Mariulka [41]3 years ago
8 0

Answer:

32,500 units must be sold to realize an operating income of $250,000.

Explanation:

a) Calculations:

Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.

To break-even, the company needs to sell the following quantity,

Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.

To achieve a target profit, the company needs to sell the following quantity,

Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.

b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs.  From the analysis, a company can also determine the units to sell in order to realize a target profit.  This helps a lot in decision making.

You might be interested in
A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5%
faltersainse [42]

Answer:

$1,565.48

Explanation:

This is an annuity due type of question since the recurring payments are made at the beginning of each year unlike Ordinary annuity whose payments occur at the end of each period.

With a financial calculator on beginning mode "BGN", use the following inputs to find the PV;

Total duration of investment; N = 3

Recurring payment; PMT = 550

Interest rate; I/Y = 5.5%

One time cashflows; FV = 0

then compute for Present value ; CPT PV = 1,565.476

Therefore, the most you should pay is $1,565.48

6 0
3 years ago
During the year, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $30,000 in gross income fr
madam [21]

Answer:

Self employment tax will be $24000

So option (e) will be correct option

Explanation:

We have given that earning from outside consulting service = $30000

Deductible amount paid in connection with consulting service = $6000

We have to find the self employment tax

Self employment tax is the difference of earning from outside source and deductible amount

So self employment tax = $30000 - $6000 = $24000

So option (e) will be correct option

5 0
3 years ago
Suppose an investment offers to triple your money in 24 months (don't believe it). What rate of return per quarter are you being
Natasha2012 [34]

Answer:

30.77%

Explanation:

Assume investment = $1

Assume mount after 24 months = $5

Number of quarters in 24 months = 24/4 = 6

Future value = P*(1+r)^n; Where P is payment, r is interest rate per period, n is number of periods

5000 = 1*(1+i)^6

1*(1+i) = 5^(1/6)

1+i = 1.30766048601

i = 1.30766048601 - 1

i = 0.30766048601

i = 30.77%

So, the rate of return per quarter being offered is 30.77%

8 0
3 years ago
Risks that are caused by the response to another risk are called secondary risks cumulative risks residual risks mitigated risks
Alecsey [184]

Risk that are caused by the response to the another risk is known as secondary risk. The first option is correct.

<h3>What are risk?</h3>

Risk refers to the possibility of the danger or harm. For example there is risk involved to change the career. The risk taken can lead to any outcome it can be positive or negative.

There are various kinds of risk one of those kind is the secondary risk in which the risk is taken as a result of the previous actions taken to deal with the situation.

Thus the correct option is Secondary risk.

Learn more about residual risk here:

brainly.com/question/6041526

#SPJ4

5 0
2 years ago
Wilma is one of five equal members of Polar, LLC. This year, Polar generates $5 million in profits. The company reinvests $4 mil
bogdanovich [222]

Answer:

c. Wilma (and each of the members) pays taxes on their $1 million share ($5 million divided by 5) of profits.

Explanation:

Data provided in the questions

Generated profits = $5 million

Reinvested amount into the company = $4 million

Out of which $1 million is to be divided equally

based on the above information, the federal income tax should be paid by 5 members of $1 million each

Hence, the option c is correct  

And all other options are wrong

3 0
3 years ago
Other questions:
  • A professor hypothesizes that there will be a relationship between couples' listening skills and length of marriage. she has a _
    13·1 answer
  • A project has cash flows of -$152,000, $60,800, $62,300, and $65,000 for years 0 to 3, respectively. The required rate of return
    5·1 answer
  • When a celebrity receives extra compensation for winning an award, this compensation is referred to as a
    12·2 answers
  • During 2018, its first year of operations, Pave Construction provides services on account of $154,000. By the end of 2018, cash
    10·1 answer
  • What Xmas product did Sir Henry Cole produce in 1843?
    5·1 answer
  • Two methods for communicating metrics are dashboards and _______
    11·1 answer
  • Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:
    6·1 answer
  • A farmer purchased a module builder for $50,000. The bank is willing to loan him $37,000. The terminal value of this investment
    15·1 answer
  • Explain the imortance of feedback in the communication process.(3marks)
    12·1 answer
  • The process through which a product or service takes root initially in simple applications at the bottom of a market and then mo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!