Answer:
Calculate Recline’s contribution margin ratio.
Contribution Margin RATIO 34%
Calculate the break-even point in sales dollars for Recline.
Break-Even Point $1.030.556
Explanation:
- The contribution margin it's determined by the total amount of Gross Profit divided by the total value of sales. To this case $405,000/$1,192,500 = 34%
Income Statement
11.250 Quantities
$106 Unit Price
$1,192,500 Sales
-$787,500 Cost of goods sold
$405,000 Contribution Margin 34%
-$281,250 Fixed Cost
$123,750 Operating Income
- The Break Even point it's when the Operating Income is equal to zero, it means the lowest level of sales the company can afford and not loss money.
BREAK EVEN POINT
9.722 Quantities
$106 Unit Price
$1,030,556 Sales
-$787,500 Cost of goods sold
$243,056 Contribution Margin
-$243,056 Fixed Cost
$0 Operating Income
Answer:
The equivalent units produced is 7320
Explanation:
To get the units produced in this period we ignore the beginning inventory, we just add new transferred out +ending inventory
- 7,000 units were transferred out
- Al the end , we have 800 at 40%= 320
Adding the 3 items
UP=7000+320=7320
Answer:
The difference is that hotels have more rooms and floors so more people can fit. But motels have fewer floors and rooms.
Answer:
The correct word for the blank space is: line of credit.
Explanation:
Line of credit refers to the maximum amount an individual or organization has available in a credit card or loan. It is determined by the credit history of the borrower implying the higher the income of the individual or organization, the higher the line of credit.
Withdrawing money from a line of credit implies paying an interest rate for a determined amount of time in addition to the principal of the loan. The term is usually determined by the borrower at the moment of purchasing.
Answer: Higher target debt-equity ratios than firms that primarily invest in intangible assets.
Explanation:
Tangible assets can be expensive and when a company has large investments in them that usually means that they spent a considerable amount to acquire them. This is why they turn to debt because it will allow them to afford these tangible assets.
This is why companies in the airplane and electricity distributing companies have a lot of debt, they had to invest in the large amount of tangible assets needed to make planes or distribute electricity.
