Answer:
The break even level of units per month fall by 16 units.
Explanation:
The current breakeven units per month are,
Break even in units = 5600 / (20 - 6)
Break even in units-March = 400 Units
The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.
The new variable costs will be 6 * 0.9 = $5.4
Assuming everything else remains constant,
The new break even in units per month = 5600 / (20 - 5.4)
New break even in units = 383.56 rounded off to 384 units
As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.
Answer:
The static budget variance of revenues is 36000 Unfavorable
Explanation:
Lincoln Corporation
Static Budget Variances
Actual Budgeted Static Budget
Units sold Units sold Variance
42,000 units 39,000 units
Sales Price $ 12 $ 12
Revenues 504000 468000 36000 Unfavorable
Variable costs $ 168,000 $ 158,000 10,000 Unfavorable
Fixed costs $ 46, 000 $ 48,000 2000 Favorable
The Static Budget Variance is calculated by subtracting the budgeted amounts from the actual amounts.
In a static budget the actual amounts are not changed for different activity levels. Instead the actual is compared with the budgeted so that exact variance is obtained for an organization.
1. Ordering 204 boxes will minimize the sum of annual ordering and carrying costs
2. Total cost will be $6118.82
3. Yes,annual ordering and carrying costs always equal at the EOQ.
<u>Explanation</u>:
D = 40 boxes per for 260 days
=
boxes
S = $60
H = $30
1. 

= 203.96
Q = 204 boxes
2. 


TC= $6118.82
Answer:
Dividend paid = $0.64 x 158,000 = $101,120. The dividend paid reduces retained earnings by $101,120.
The correct answer is C
Explanation:
Dividend is paid out of profit after tax. This reduces the retained earnings of the company since dividend involves outflow of cash.
Explanation:
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