1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex777 [14]
3 years ago
9

Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe

d costs are $7,600,000, but 25 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $20. How many units does the firm need to sell to reach the cash break-even point? (Round your answer to the nearest whole number.)
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

285,000 units

Explanation:

The computation of the cash break-even point of sales units is shown below:

Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)

where,

Fixed cost = $7,600,000

Depreciation = $7,600,000 × 0.25% = $1,900,000

And, the contribution margin per unit is $20

So, the cash break-even point of sales units is

= ($7,600,000 - $1,900,000) ÷ ($20)

= 285,000 units

You might be interested in
Marigold Inc. reported total assets of $2391000 and net income of $318000 for the current year. Marigold determined that invento
Artist 52 [7]

Answer:

Total Assets = $2391000

Net Income = $318000

Explanation:

The corrected amount for total assets and net income for the year :

Total Assets = $2391000

Net Income = $318000

7 0
2 years ago
Which statement of cash flow method would require the disclosure of the noncash transaction of acquiring a factory financed enti
Pie

Answer: Direct and indirect statement of cash flows

Explanation: statement of cash flows shows the overall computed inflow and outflow of cash that took place in an organization over a given period of time. It shows how well an organization managed it's cash which is used to settle it's debts and make profit.

The direct method only considers the cash inflow and outflow into account and produces the cash flow from it's operations.

The indirect method considers the net income as the starting point and prepare the inflow and outflow using adjustments.

3 0
3 years ago
A company purchases merchandise with a catalog price of $30,000. The company receives a 40% trade discount from the seller. The
Svet_ta [14]

Answer:

$17,820

Explanation:

Data provided in the question:

Catalog price of the merchandise = $30,000

Trade discount received = 40%

The amount of discount received = 40% of $30,000

= 0.4 × $30,000

= $12,000

Therefore,

Cost of Merchandise = Catalog price - Discount

= $30,000 - $12,000

= $18,000

also,

credit terms = 1/10, n/30

since, the payment was made within the discount period

1% of discount will be provided

thus,

amount of discount = 1% of cost of merchandise

= 0.01 × $18,000

= $180

hence,

Net cost of the merchandise

= Cost of merchandise - Discount on credit terms

= $18,000 - $180

= $17,820

3 0
3 years ago
Your store has average sales of $1,680 per day. Its shrinkage rate is 3%. What will its losses be for an entire year?
Lerok [7]

Answer:

$18,396

Explanation:

Average sales of the store per day = $1,680

Number of days in a year = 365

Total sales in a year = $1,680  x 365 = $6132,200

Shrinkage rate = 3%

Losses for an entire year = 0.03 x $6132,200 = $18,396

6 0
2 years ago
An official statement has a dated date of March 1, but the first interest payment is October 15. This most likely reflects A) a
Greeley [361]

Answer:

A) a long coupon.

Explanation:

Hope this helps you :)

3 0
2 years ago
Other questions:
  • Zokro, a nongovernmental not-for-profit organization, uses the indirect method to prepare its statement of cash flows. In determ
    9·1 answer
  • The price of the candy corporation stock will generally increase when there is:
    12·1 answer
  • What recently happened in the automobile industry that exemplifies the idea that "we need to value more the creation of ideas in
    5·1 answer
  • There is widespread consensus that a gluten-free diet alleviates symptoms of autism.
    10·1 answer
  • Read the sentence.
    11·1 answer
  • joes shoe shop raises prices from the equilibrium price of $40 a pair to its new price of $60 a pair.
    12·2 answers
  • The following data relate to the direct materials cost for the production of 2,200 automobile tires:
    5·1 answer
  • En que afecta la venta de mascotas exoticas a la biodiversidad?
    12·1 answer
  • Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November
    15·1 answer
  • From June to the end of September, Jennifer wants to save at least $1,500. Her monthly expenses are $600. Jennifer saves whateve
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!