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Afina-wow [57]
3 years ago
12

Astro Co. sold 20,500 units of its only product and incurred a $67,750 loss (ignoring taxes) for the current year as shown here.

During a planning session for year 2018’s activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $155,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales $ 779,000 Variable costs 584,250 Contribution margin 194,750 Fixed costs 262,500 Net loss $ (67,750 ) Required: 1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.)
Business
1 answer:
maksim [4K]3 years ago
3 0

Answer:

Break even point in dollar sales = $1,050,000

Explanation:

Break Even Point in dollar sales = Fixed Cost/ Contribution margin percentage

Contribution margin percentage = (Contribution margin/ Sales) X 100

Here we have for the year 2017

Contribution margin = $194,750

Sales = $779,000

Contribution margin percentage = ($194,750/$779,000) X 100 = 25%

Break even point in dollar sales = Fixed Cost $262,500/25%

= $1,050,000

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Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000
777dan777 [17]

Answer:

correct option is b. $22,000

Explanation:

given data

reported revenues = $810,000

expenses = $630,000

annual amount of amortization  = $15,000

solution

we get here net income 2019 is

net income 2019 = revenue - expenses - amortization  ........1

put here value

net income 2019 = $810,000 - $630,000 - $15,000  

net income 2019 = $165,000

and

as here acquired stock on September

so we get here income for September to December that is

net income = $165,000 × \frac{4}{12}    

net income = $55000

and

non controlling interest is

non controlling interest = 40% of $55000

non controlling interest = $22,000

so correct option is b. $22,000

5 0
3 years ago
​_________ includes looking at​ relationships, attempting to attribute causes and​ effects, and basing our conclusions on scient
zalisa [80]

Answer:

The right answer is option (D).

Explanation:

According to the scenario, the most appropriate answer is option (D) because systematic study can be defined as the study of social relationships and behavior and making a decision on the basis of data collected.

While the other options are not that appropriate because of the following reasons:

  • The organizational study can be defined as the study when a person organizes a process which results in boosting the social relation.
  • Intuitive study shows the concept of making decision immediately without going deep on data collected.
  • Theoretical study shows the concept of study anything very theoretic and than makes the decision.
  • Case-based study shows the concept of study which checks though the results of similar cases to make any decision.

7 0
3 years ago
Donnie Hilfiger has the following balances in its stockholders' equity accounts on December 31, 2015: Treasury Stock, $400,000;
Nana76 [90]

Answer:

Explanation:

The preparation of the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2015 is presented below:

                                                DONNIE HILFIGER

                                                     Balance Sheet

                                         (Stockholders' Equity Section)

                                          As of December 31, 2015

Common stock $350,000

Preferred stock $1,000,000

Additional paid in capital $3,200,000

Total paid in capital $4,550,000

Retained earnings $,1600,000

Total  $6,150,000

Less: Treasury stock - $400,000

Total Stock holders equity $5,750,000

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3 years ago
Given below is a numbered list of cost terms. For each of the definition statements that follow, place the number of the cost te
leva [86]

Answer:

The correct answers are the following:

a - 4 Sunk

b - 5 Opportunity

c - 3 Fixed

d - 2 Variable

e - 6 Incremental

f - 1 Recurring

g - 7 Direct

h - 8 Non-recurring

Explanation:

a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.

b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.

c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.

d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.

e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.

f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.

g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.

h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.

4 0
3 years ago
Who receives the goods or services from the lottery
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The person who wins!!!!!!!!!!!!!


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