IHOP 'N GO

Boss Enterprises currently sells its products for $ 90 per unit. Management is contemplating a 40% increase in the selling pric

Kazeer [188]

Answer:

break even point in units at the current selling price is $5000 units

Explanation:

given data

Selling price = $ 90 per unit

selling price for next year = 40% increase

Variable costs = 40% of sales revenue

Fixed expenses = $ 270,000 per year

to find out

break even point in units at the current selling price

solution

we know that Contribution margin is

Contribution margin = 1 - Variable cost ratio ..............1

Contribution margin = 1 - 0.40

Contribution margin = 0.60

so Contribution per unit will be

Contribution per unit = Selling price × Contribution margin ratio .............2

Contribution per unit = $90 × 0.60

Contribution per unit = $54 per unit

and

Break even point in units at current price will be

Break even point = $\frac{Fixed cost}{
Contribution per unit}$ ........3

Break even point = $\frac{270000}{
54}$

Break even point = $5000 units

so break even point in units at the current selling price is $5000 units

7 0

3 years ago

Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for

aev [14]

Question Continuation

1. The number of physical units that were transferred out and the number that are in ending work in process inventory.

2. The number of equivalent units for materials and conversion for the month.

3. The cost per equivalent unit of materials and conversion for the month.

Answer:

See explanation below

Explanation:

1. .

Units to account for is given as:

Beginning (Work in Process) ------_--------- $2,000

Unit Started at the beginning (April) ----- $28,000

Total = $2,000 + $28,000 = $30,000

Calculating total units accounted for.

Units completed and transferred out ------- $23,000

Ending (Work in Process) ------------------------ $7,000

Total Units = $23,000 + $7,000 = $30,000

2.

Units completed and transferred out

=> $23,000 (units) => 100% (% Materials) => $23,000 (EUP Materials) => 100% (% Conversion) => $23,000 (EUP Conversion)

Units of ending work in process

=> $7,000 (units) => 100% (% Materials) => $7,000 (EUP Materials) => 40% (% Conversion) => $2,800 (EUP Conversion)

Equivalent Units of Production

=> $30,000 (units) => 100% (% Materials) => $30,000 (EUP Materials) => (% Conversion) => $25,800 (EUP Conversion)

3.

Cost per equivalent units of production

Cost of beginning work in process => $45,000 (Direct materials) => $56,320 (conversion)

Cost incurred during this period => $375,000 (Direct materials) => $341,000 (conversion)

Total Cost => $420,000 (Direct materials) => $397,320 (conversion)

Equivalent Units of Production => $30,000 (Direct materials) => $25,800 (conversion)

Cost per equivalent unit of production => $14.00 (Direct materials) => 15.40 (conversion)

Cost per equivalent unit of production is calculated by Total Cost / Equivalent unit of production

5 0

4 years ago

A department store has budgeted sales of 12,000 men's coats in September. Management wants to have 6,000 coats in inventory at t

murzikaleks [220]

Answer:

$1,050,000

Explanation:

Budgeted purchases= coats in inventory + budgeted sales- Beginning inventory expected coats

Budgeted purchases = 6,000 + 12,000 - 4,000 = 14,000 suits

14,000 suits x $75/suit = $1,050,000

Therefore the dollar amount of the purchase of suits if each coat has a cost of $75 is $1,050,000

6 0

3 years ago

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in ________ decision making.

Deffense [45]

Answer:

extended problem solving

Explanation:

A situation where a buyer is buying a product he or she has never bought before hence requires considerable efforts, such is termed extended problem solving. The reason is that a buyer does not have prior experience about the product or the supplier, thereby creating complex buying decisions.

In extended problem solving, buyers evaluate and search for information about products they intend to buy due to the fact that they are not familiar with the products. Here, buyers search for all available information inorder to choose among brands of products they intend to buy; being the first time of purchasing such.

5 0

3 years ago

A data warehouse is one or more very large databases containing both detailed and summarized data for a number of years and from

navik [9.2K]

Answer:

True

Explanation:

Data warehouse involves combining different data/ information which is heterogeneous from various sources in order to have a comprehensive/large data base, it usually involves analytical reporting as well as decision making. For instance customer information from the point of sales system of the firm can be found in the database.

It should be noted that data warehouse is one or more very large databases containing both detailed and summarized data for a number of years and from numerous sources used for analysis rather than transaction processing.

8 0

3 years ago