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Zarrin [17]
3 years ago
6

Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling

price, and fixed costs are $12,000 per month. Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $70 per unit, the dollar volume of sales per month necessary for Accents to break-even is: Group of answer choices $12,000. $20,000. Some other amount. $30,000.
Business
1 answer:
katrin2010 [14]3 years ago
4 0

Answer:

$20,000

Explanation:

Break-even sales is the point of sales at which the business incur no profit no loss. At this level of sale the business covers all of the variable and fixed cost associated with the product. Break-even is expressed in sales volume and sales value terms.

Current Selling Price = $70

As we know

Sales price = Variable cost + Contribution margin

Sales price = Variable cost ratio + Contribution margin ratio

100% = 40% + Contribution

Contribution = 100% - 40% = 60%

Fixed Cost = $12,000 Per month

Break-even sales  = Fixed Cost / Contribution margin ratio

Break-even sales  = $12,000 / 60% = $20,000

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Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities
Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0
3 years ago
In the northern colonies, cities sprang up
QveST [7]
The answer is C I hope this helps you
5 0
3 years ago
Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline
love history [14]

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

= $1,550,000

therefore, the overall profit is  $1,550,000

7 0
3 years ago
Which financial transaction is associated with the home rental process?
Bezzdna [24]
During a home rental process you must place a security deposit down in order to rent the home. You also sometimes will have to pay a couple months rent in advance.
3 0
3 years ago
Read 2 more answers
Coleslaw cost $16.95 for a 5 kg pail. what is the cost for a 4 oz portion
sammy [17]

Answer: The cost for a 4 oz portion is 20$

Explanation:

Given : Cost of 5kg pail = 16.95$

To find : Cost of a 4 oz prtion = ?

Conversion factor : 1 kg = 35.274 oz

Thus cost of 35.274 oz = 176.37$

Then cost of 4oz =\frac{176.37}{35.274}\times 4=20$

Thus cost for a 4 oz portion is 20$

5 0
2 years ago
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