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zysi [14]
3 years ago
7

If actual sales totaled $500,000 for the current year (40,000 units at $12.50 each) and planned sales were $495,000 (45,000 unit

s at $11.00 each), the difference between actual and planned sales due to the unit price factor is A. $60,000 increase. B. $55,000 decrease. C. $20,000 increase.
Business
1 answer:
irina [24]3 years ago
4 0

Answer: <u>The answer is A. $60,000 increase.</u>

<u />

Explanation: 1: The actual units sold multiplied by the budgeted sale price is equal to a total of $440000 (40000 x 11 = $ 440000)

2: The actual units sold multiplied by the actual sale price is equal to $500000 (40,000 x 12.5 = $ 500,000)

3:<u> $500000 - $440000 = </u><u>$60000</u><u> increase by the unit price factor.</u>

<u />

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On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased ass
nexus9112 [7]

Answer:

James Industries

The amount of the annual lease payments is:

= $207,878.86.

Explanation:

a) Data and Calculations:

Cost of equipment = $830,000

Normal sales price = $830,000

Residual value after 5 years = $200,000

Interest rate = 8%

Lease period = 5 years

From an online financial calculator:

Loan Amount  830000

Loan Term  5  years

Interest Rate  8

Results:

Payment Every Year   $207,878.86

Total of 5 Payments   $1,039,394.29

Total Interest   $209,394.29

Lease Payment Schedule:

Period    PV                      PMT                      Interest           FV

1           $830,000.00     $-207,878.86   $66,400.00    $-688,521.14

2            $688,521.14     $-207,878.86    $55,081.69  $-535,723.98

3          $535,723.98     $-207,878.86    $42,857.92  $-370,703.04

4          $370,703.04     $-207,878.86    $29,656.24  $-192,480.42

5          $192,480.42     $-207,878.86     $15,398.43  $0.00

6 0
3 years ago
Sheridan Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports G
BigorU [14]

Answer:

b. $19500000.

Explanation:

Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.

Total Contribution can be determined by calculating adding estimated contribution of each division.

Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%

Fixed cost = $7,215,000

Break-even point = Fixed cost / Contribution margin ratio = $7,215,000 / 37% = $19,500,000

7 0
3 years ago
Read 2 more answers
ACME Drilling is evaluating an offshore oil-drilling platform for possible impairment. The company estimates the following: book
alekssr [168]

Answer:

ACME Drilling should record impairment loss of $6.9 million

Explanation:

According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.

In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.

The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.

6 0
3 years ago
If a project has a net present value equal to zero, then: I. the present value of the cash inflows exceeds the initial cost of t
Over [174]

Answer:

ii, iii, iv

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Net present value is the present value of after tax cash flows from an investment less the amount invested.

If the present value of the cash inflows exceeds the initial cost of the project,  NPV is positive

If the present value of the cash inflows is less than the initial cost of the project,  NPV is negative

7 0
3 years ago
When a large marketing company contracts with a payroll service company to process employee checks for them, they
Elenna [48]
B
Because the marketing company undertook the payroll service company as a cost cutting measure.
7 0
2 years ago
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