Answer:
The sales level in units to achieve the desired profit is 5,200 units.
Explanation:
Fixed cost = $ 3,000
Desired profit = $10,000
Lets the number of units sales is N.
Total variable cost = $2.5*N
Sales revenue = $5*N
Net Profit = Sales revenue – cost of goods sold – operating expenses
$10,000 = ($5*N) – ($2.5*N) - $3,000
($5*N) – ($2.5*N) = $ 10,000 + $ 3,000
$2.5*N = $ 13,000
N = $13,000/$2.5
= 5,200 units
Therefore, The sales level in units to achieve the desired profit is 5,200 units.
Answer:
The value of x is 566.36
Explanation:
The value of x should be such that the present value of both Investments is the same when discounted at a rate of 11%. To calculate the present value, we use the following formula,
Present Value = CF 1 / (1+r) + CF 2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF represents Cash flow
- r represents the discount rate
So, we equate both the present value of Investment A and B to calculate the value of x.
Present Value of A = Present Value of B
450/(1.11) + 650/(1.11)^2 + 850/(1.11)^3 = 850/(1.11) + x/(1.11)^2 + 450/(1.11)^3
1554.472661 = 765.7657658 + x/(1.11)^2 + 329.0361216
1554.472661 - 765.7657658 - 329.0361216 = x/(1.11)^2
459.6707736 * (1.11)^2 = x
x = 566.3603602 rounded off to 566.36
Answer: $1,020
Explanation:
= Machine setup for Job 971 * Budgeted machine setup cost
Budgeted Machine setup cost = 13,260/390 setups
= $34 per setup
Overhead cost for Job 971 is:
= 34 * 30
= $1,020
Answer:
none of the choices are correct
Explanation:
When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project
There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner
Therefore none of the choices are correct