All categories

3 years ago

Billings Company has the following information available for September 2017.

Business

1 answer:

kumpel [21]3 years ago

7 0

Answer:

Part a

Contribution Margin = 29.95% (2 d.p)

Part b

Billing Company

CVP Income for as at September 2017

Total Per Unit

$ $

Sales 295704 444

Less Variable Costs (138084) (311)

Contribution 157620 133

Fixed Costs (59850) 89.86

Net Income 97770 43.14

Part c

Billing`s break even point is 450 units

Part d

Billing Company

CVP Income for as at September 2017 - Break Even Point

Total Per Unit

$ $

Sales 199800 444

Less Variable Costs (139950) (311)

Contribution 59850 133

Fixed Costs (59850) 133

Net Income 0 0

Explanation:

Part a

Contribution Margin = Contribution/Sales × 100

Therefore contribution margin is ($444-$311)/$444 * 100 = 29.95% (2 d.p)

Part b

Sales - Variable Cost = Contribution

Net Income = Contribution - Total Fixed Costs

Part c

Break Even Point is when Billings neither makers a profit or loss.

Break Even Point ( Units) = Total Fixed Cost/Contribution per unit

Therefore Break Even Point (Units) = $59850/$133 = 450 units

Part d

The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill

You might be interested in

Explain, in your own words and step-by-step, what happens to wastewater once it reaches the treatment plant. (6 steps)

timofeeve [1]

Answer:

After wastewater reaches the treatment plant, there are two process applied consecutively: Primary treatment and Secondary treatment.

Explanation:

When water reaches to the treatment plant there are two process for the treatment:

Primary Treatment: Here most of the solid particles are filtered out. The screening process removes the large floating objects such as rags and sticks that may hamper the pipes. Then the grit chamber sediments the sands, stones, cinders etc. in the sedimentation tank.
Secondary Treatment : It is the process of removing the organic wastage by using the bacteria. The trickling filter and the activated sludge process removes about 80% of the organic waste from the water.

7 0

3 years ago

Store Policies that are open to interpretation by store employees

algol13

Answer:

a) Customer satisfaction

Explanation:

7 0

2 years ago

Barbara made a contract to sell a house to Bolton. The agreement stated that it was contingent upon the buyer being able to secu

Levart [38]

Answer and Explanation:

A due on sale clause is simply a stipulation in the mortagage agreement that the

"borrower if he wants to sell the property to some other person, first of all he (borrower) shall repay the entire outstanding mortagage amount and then only it is possible to sell the property which is secured under Mortagage agreement.

Hence in essence, the borrower must repay before selling it to some other person which will result in paying the sale proceeds of house to the lender first and the Borrower again has to take loan sometimes from the same lender.

Hence it is imperative that the mortagage obligation cannot be transferred to any other person. That is any subsequent buyer cannot ASSUME the mortagage. Therefore due on sale

Clause prevents assuming of mortagages.

6 0

3 years ago

Consider the following two countries. Assume they produce only these two goods. Note that productivity is now measured in how ma

Ainat [17]

Answer:

A. 1/3 computers

B. 0.6 computers

Explanation:

A. The opportunity cost incurred by the US to make cars is the number of computers it would have to give up to make a car.

The US can either make 12 cars or 4 computers. For every car made therefore the US forgoes;

= 4/12

= 1/3 computers.

B. The same logic applies to Japan. They can either make 10 cars or 6 computers.

Their opportunity cost for cars is therefore;

= 6/10

= 0.6 computers

5 0

3 years ago

Which VALS segment is most likely to have a top of the line brand new (2015) SurfaceTM Book--the Ultimate Laptop--from Microsoft

padilas [110]

Answer:

correct option is a. Innovators

Explanation:

solution

As here VALS some are as

high resources : Innovators
ideal : thinker and believer
achievement : achiever and strivers
self expression : experiences and maker
low resources : survivors

sop here Innovator segment is most likely feature in the VALS segment to have a top of the line brand new Surface TM Book

so here correct option is a. Innovators

3 0

3 years ago