Answer:
1.90
Explanation:
Calculation for how many cells that the company require to satisfy predicted demand
Using this formula
Numbers of cell=Projected annual demand/Annual capacity per cell
Based on the information given we were told that Annual demand is 50,000 units in which it is forecasted that within 2 years it will tripple which means that Annual demand will be calculated as:
Projected annual demand = 50,000*2 years
Projected annual demand=100,000
Let plug in the formula
Numbers of cell=100,000÷(220 units/day × 238 days/year)
Numbers of cell=100,000÷52,360
Numbers of cell=1.90
Therefore the amount of cells that the company require to satisfy predicted demand will be 1.90
Answer:
Operating profit is projected to be $35,100
Explanation:
Morrow City International
Analysis of the Current and Projected demand to determine the Operating Profit
Particulars Current Projected Changes in
Demand Demand Demand
Selling price $8.50 $9.25 0.75
Less: Cost Price $5.80 $5.80 0
Contribution $2.7 $3.45 0.75
Margin
Unit Sold <u>79,000 72,000 -7000</u>
Total $213,300 $248,400 $35,100
Contribution
Note: Total contribution = Unit sold * Contribution margin
A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.
The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.
A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).
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Answer:
Break-even point in total units= 951.7units
Explanation:
<em>Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss</em>.
It is calculated using this formula:
<em>Break-even point (in units) = Fixed cost/ average contribution per unit</em>
<em> Blue Plaid</em>
Contribution per unit 43-30 = 13 52-45 = 7
<em>Average contribution per unit </em>
= ( (13× 4) + (7×5) )/9
= $ 9.66 per unit
<em>Break-even point in total units</em>
= $9200/$ 9.66
= 951.7units
Break-even point in total units= 951.7units