Answer:
Break-even point in units= 450,000 units
Explanation:
Giving the following information:
Desired profit= $250,000
Sales price is $9
Unitary variable cost= $8
Total fixed costs are $200000
To determine the number of units required, we need to use the break-even point formula, including the desired profit.
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 250,000) / ( 9 - 8)
Break-even point in units= 450,000 units
Answer : The markup rate based on cost is 91.79747%.
We have
Selling price per jacket = $37.88
Cost per jacket = $19.75
![Markup rate =[\frac{Selling Price - Cost}{Cost}] * 100](https://tex.z-dn.net/?f=%20Markup%20rate%20%3D%5B%5Cfrac%7BSelling%20Price%20-%20Cost%7D%7BCost%7D%5D%20%2A%20100%20)
Substituting the values in the formula above we get,
![Markup rate = [\frac{37.88-19.75}{19.75}] *100](https://tex.z-dn.net/?f=%20Markup%20rate%20%3D%20%5B%5Cfrac%7B37.88-19.75%7D%7B19.75%7D%5D%20%2A100%20)
![Markup rate = [\frac{18.13}{19.75}] *100](https://tex.z-dn.net/?f=%20Markup%20rate%20%3D%20%5B%5Cfrac%7B18.13%7D%7B19.75%7D%5D%20%2A100%20)
%
Answer: d. preferred dividends must be paid in full before any common stock dividends can be paid.
Explanation:
Preferred stocks will see their dividends paid before those of common shares. Indeed if the company was to liquidated, preferred shareholders get preference over common shareholders.
Preferred dividends have preference over common dividends and so their name reflects this by being called ''preferred'' shares. Some classes of preferred shares such as cumulative shares have an even greater amount of preference as their dividends will always be paid even if it takes years to do so.
Answer:
Adjusted accounting profit - $63,200
Cash inflow / Outflow - $63,200
Depreciation Tax shield - $63,200
Explanation:
Revenue - $188,000
Variable cost ($57,000)
Contribution $131,000
Rental cost ($37,000)
Depreciation (17,000)
($54,000)
PBIT 77,000
Income Tax (40%) (30,800)
Net Income 46,200
A) Adjusted Accounting profit
Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200
B)Cash Inflow/Outflow
Revenue $188,000
Variable cost (57,000)
Rental cost (37000)
Income Tax (30,800)
$63,200
C Depreciation Tax Shield
Tax shield =40%*17,000= $6800
Cash income from operation (EBITDA*(1-tax rate) = 56,400
Add back $6,800 = 6,800
$63,200
