a). Breakeven point = Total fixed costs ÷ Contribution margin ratio
Contribution ratio = Contribution margin ÷ Total sales
Contribution ratio = $822,212 ÷ $1,953,000 = 0.421
Breakeven point = $520,000 ÷ 0.421= $1,235,154.
b). Margin of safety = Total Sales - Break-even point
Margin of safety = $1,953,000 – $1,235,154= $717,846.
c) Target profit =(Total fixed costs + Target profit) ÷ Contribution margin ratio
Target profit = ($520,000 + $200,000) ÷ 0.421= $720,000 ÷ 0.421= $1,710,214
Explanation:
The Data sheet has been added as an attachment
Answer:
Selling price per unit= $196
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (400,000 / 50,000) + 6
Predetermined manufacturing overhead rate= $14 per machine hour
<u>Now, we can allocate overhead and calculate the total cost:</u>
<u></u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14*100= $1,400
Total cost= 1,400 + 750 + 2,750
Total cost= $4,900
<u>Finally, the selling price per unit:</u>
<u></u>
Unitary cost= 4,900/40= $122.5
Selling price= 122.5*1.6
Selling price= $196
Answer:
$4,213
Explanation:
Product Group Units Cost/Unit Market/Unit Total Value
A 1 600 $1.00 $0.80 $480
B 1 250 $1.50 $1.55 $375
C 2 150 $5.00 $5.25 $750
D 2 100 $6.50 $6.40 $640
E 3 80 $25.00 $24.60 $1,968
total $4,213
when you are using the lower of cost or net realizable value to determine the value of your inventory, you should calculate the inventory's value using the lowest cost between purchase cost and market value.
The initiatives that Woolworths use to lessen their impact on the environment - RECYCLING
we're committed to lowering the quantity of waste we send to landfill, recycling what we will and the usage of recyclable materials wherein we can. a number of THE ways we are RECYCLING TO reduce WASTE: RECYCLED PLASTIC: the whole lot in our shops from trolleys to signage is made from recycled substances.
1. ENERGY
We want to lessen the negative affects of weather exchange. That’s why we’ve made a commitment to the usage of power efficiently and decreasing our carbon footprint.
HERE'S HOW WE'RE SAVING ENERGY
AT OUR STORES: every time we design a new store, we have a look at the way to encompass strength-saving elements and solar energy. This has resulted in extra than 40% reduction in energy utilization in SA shops, with over 100 inexperienced stores designed.
2. WATER
We want to ensure future generations will still be able to enjoy clean, fresh water. That's why we’re actively working to use water responsibly – in our own operations and those of our suppliers.
HERE'S HOW WE'RE SAVING WATER:
AT OUR HEAD OFFICE: We treat and use underground water, saving the local municipality over 14.5 million litres of water every year.
FARMING FOR THE FUTURE: We’re helping farmers reduce water wastage and water pollution through our Farming for the Future initiative.
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