Answer:
Selling price= $150
Explanation:
Giving the following information:
The expected sales are 2,500 units. Production informs you that the variable costs are $50/unit. Fixed costs are $150,000.
We need to use the break-even point formula and isolate the selling price:
Break-even point= fixed costs/ contribution margin
Break-even point= fixed costs/ (selling price - unitary variable costs)
2,500= 150,000 / (X - 50)
2,500X - 125,000= 150,000
2,500X= 375,000
Selling price= $150
Answer:
The horizon date of Holt Enterprises is at the end of the second year.
Explanation:
The horizon date is when there is a constant growth or the growth rate becomes constant. The horizon date is the last year in the free cash flow when the growth rate is constant. It is also called forecast horizon or terminal date because it is at the end of the forecast. At the horizon date, the firm becomes stable and profitable.
The horizon date of Holt Enterprises is at the end of the second year.
It will definitely decrease.
Answer: Decrease.
Answer:
The answer is: too much data
Explanation:
If you follow Frank's recommendations, you would be examining seven factors (social media effects, personal recommendations, the book's place, the cover, customers' habits, type of cover and store's atmosphere). Some of them might even be opposing to the others, e.g. customer never read a book by that author, but likes the cover design, but only buys books with paperback covers, is in love with the store's clerk, likes romance but only reads action novels.
This is simply too much information. If you want to increase sales, it is better to focus on specific variables, or even a couple at most.
Answer:
C. $370,000
Explanation:
Poodle Corporation was organized on January 3, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock.
During 2011, Poodle had the following transactions relating to shareholders' equity:
Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
Therefore total Paid-in capital at the end of 2011 is derived by :
(30,000 shares x $7) + (20,000 x $8) = $370,000
Paid - In capital refers to the funds that stockholders have invested through the purchase of stock from the issuing company, including premiums and not just par value.
