Answer:
Fixed costs= $9,021.27
Explanation:
Giving the following information:
April 922 $ 17,912
May 983 $ 18,300
June 928 $ 17,965
July 912 $ 17,810
August 934 $ 17,994
September 919 $ 17,880
October 936 $ 18,032
November 876 $ 17,290
December 915 $ 17,838
<u>To calculate the variable and fixed component, we need to use the following formulas:</u>
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Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (18,300 - 17,290) / (983 - 876)
Variable cost per unit= $9.4392
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 18,300 - (9.4392*983)
Fixed costs= $9,021.27
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 17,290 - (9.4392*876)
Fixed costs= $9,021.27
Answer:
a. 80,000 units
b. 95,000 units
Explanation:
The computation is shown below:
a.The anticipated break-even sales (units) is
As we know that
Break even point in units = Total fixed cost ÷ Contribution margin per unit
= $27,600,000 ÷ $345
= 80,000 units
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $1,150 - $805
= $345
b. The units for realize operating income is
Unit sales for target profit = (Fixed expense + Target profit) ÷ Contribution margin per unit
= ($27,600,000 + $5,175,000) ÷ $345
= $32,775,000 ÷ $345
= 95,000 units
Answer:
True
Explanation:
A single use plan is basically a one time business transaction that is supposed to take place only once and should not be repeated in the future. In this case, the production plant has been used for more than 100 years, but once it is sold, its history and the company should no longer have any type of relationship with it.
Answer: $22000
Explanation:
The amount of Superior's dividend declarations during its recent year of operation will be calculated thus:
Ending retained earnings ($91000) = Beginning retained earnings ($75000) + Net income ($38000) - Dividend declared
$91000 = $113000 - Dividend declared
Dividend declared = $113000 - $91000
Dividend declared = $22000
Therefore, Superior's dividend declarations during its recent year of operation is $22000
Answer:
PV of the stock today = $115.83
Explanation:
We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.
As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.
Present value of perpetuity = Cash flow / expected rate of return
PV of stock at Year 10 = 10 / 0.052
PV of stock at Year 10 = 192.3076923
The value of the today will be,
PV of the stock today = 192.3076923 / (1+0.052)^10
PV of the stock today = $115.83
