FOR BRAINLIEST!!

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

Mariulka [41]

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.

8 0

3 years ago

Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a

k0ka [10]

Answer: $10,000 and $25,000

Explanation:

DEPRECIATION FOR 2022.

Straight line method of depreciation means it depreciates by the same amount every year. You can calculate by

(Cost - Residual Value) / useful life.

=($45,000 - $5,000) / 4

= $10,000.

Each year the framing machine reduces by $10,000 meaning in 2022 the depreciation will be $10,000.

BOOK VALUE AT DECEMBER 31, 2022

We've established that every year the value drops by $10,000.

On December 31, 2021, it dropped by $10,000.

On December 31, 2022, it dropped by another $10,000.

Adding that together gives you 10,000 + 10,000 = $20,000.

$20,000 is the total depreciation at the end of 2022.

Subtract that figure from the cost,

=$45,000-$20,000

=$25,000.

BOOK VALUE ON DECEMBER 31, 2022 is $25,000.

8 0

3 years ago

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new dep

rewona [7]

Answer:

b) decline

Explanation:

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.

4 0

3 years ago

Assume the following information from a schedule of cost of goods manufactured:

Evgesh-ka [11]

Answer:

The manufacturing overhead applied to work in process is:

D. $79,000

Explanation:

a) Data and Calculations:

Beginning work in process inventory 30,000

Direct materials used in production 50,000

Direct labor 60,000

Total manufacturing costs to account for 219,000

Manufacturing overhead applied to WIP 79,000 (219,000 - 140,000)

Ending work in process inventory 72,000

b) The manufacturing overhead applied to Work in Process is the difference between the total manufacturing costs to account for and the costs of beginning work in process, direct materials, and direct labor for the period. When the ending work in process is deducted from the total manufacturing costs, the resulting figure represents the cost of goods transferred to finished goods inventory.

3 0

3 years ago

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its ave

Zanzabum

Answer:

$53,700

Explanation:

Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced

=($5.20 + $3.75) * 6,000 units

=$8.95 * 6,000

=$53,700

The total amount of direct manufacturing cost incurred is closest to $53,700

6 0

3 years ago