1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Igoryamba
3 years ago
8

A proposed 1-year project has a contribution margin of $5, fixed costs of $12,000, variable costs per unit of $12, depreciation

of $30,000, an EAC of $41,185 and a tax rate of 21 percent. What is the present value break-even point in units
Business
1 answer:
Brut [27]3 years ago
7 0

Answer:

6,642 units

Explanation:

Given that,

Contribution margin = $5,

Fixed costs = $12,000,

Variable costs per unit = $12,

Depreciation = $30,000

EAC = $41,185

Tax rate = 21 percent

Present value break-even point in units:

= {[EAC × (1 - Tax rate)] - (Depreciation × Tax rate)} ÷ [contribution margin × (1 - Tax rate)]

= {[$41,185 × (1 - 0.21)] - ($30,000 × 0.21)} ÷ [$5 × (1 - 0.21)]

= [32,536.15 - $6,300] ÷ $3.95

= $26,236.15 ÷ $3.95

= 6,642 units

You might be interested in
What is the approach that Scrum encourages when a Team determines it will be difficult to deliver any value by the end of a Spri
garik1379 [7]

Answer:

A.  Together with the Product Owner, focus on what can be done and identify a way to deliver something valuable at the end of each Sprint

Explanation:

The approach that is to be applied for delivering the value that becomes difficult is to come together by involving the owner of the product so that we get to know by focusing it and identify the way for delivering the valuable things so that in return the customer could satisfy with the product and the chances of building a long term relation would became high

6 0
4 years ago
If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the
nexus9112 [7]

Answer: more, growth

Explanation:

If all firms expect greater demand for their products or services, they will hire more resources like labor and capital and the economy will experience growth.

For an economy to grow, human capital, labor force, and technology can not be exempted. The quality of the materials used also plays a vital role as well. Once all these are in place, then the economy while start experiencing turn around.

6 0
4 years ago
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient
RSB [31]

Answer:

1. Cost of the old X-ray machine - SC

2. The salary of the head of the Radiology Department - None

3. The salary of the head of the Pediatrics Department - None

4. Cost of the new laser printer - DC

5. Rent on the space occupied by Radiology - None

6. The cost of maintaining the old machine - DC

7. Benefits from a new DNA analyzer - OC

8. Cost of electricity to run the X-ray machines - DC

Where,

SC - Sunk cost

DC - Differential cost

OC - Opportunity cost

8 0
4 years ago
Car dealer ben carte paid 97 percent of the base price of 22,567. he also paid 93 percent of options totaling 3,465. and a desti
lakkis [162]

Answer: im also working on my school work and i also need help i tried to work on that question im confused but i know that 22,567-97% is 677.01

3 0
3 years ago
What factors will determine the sizes of the​ shortages? The extent of the excess demand implied by the shortages will depend on
Juliette [100K]

Answer:

The answer is: C) the elasticity of​ demand, where the shortages will be larger if demand is more inelastic.

Explanation:

When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.

Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.

If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.

6 0
3 years ago
Other questions:
  • You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load o
    9·1 answer
  • Owens Finest Mattress Co., Inc. decided to employ an anti-mission statement. Which of the following phrases did they use?
    13·2 answers
  • As an advertising manager of a company, you have been asked to write a proposal stating why the company should advertise and it'
    15·1 answer
  • A new accountant at Windsor, Inc. is trying to identify which of the following amounts should be reported as the current asset "
    15·1 answer
  • Room and Board has determined that $41,650 is the break-even level of earnings before interest and taxes for the two capital str
    10·1 answer
  • You purchased 50 shares of a stock at $100 per share. Your stock value dropped 5% in one year. If the stock were to continue to
    11·2 answers
  • Nadia's credit card has an APR of 12.18% and a grace period of 17 days, and Nadia pays her balance in full every month. If her l
    9·1 answer
  • Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealth
    11·1 answer
  • Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $354,000 and credit sa
    5·1 answer
  • From the following examples, which one correctly defines a leader?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!