Answer:
Expected contribution as per sales mix = $37*0.60 + $50*0.40
= $22.20 + $20
= $42.20 per unit
Total number of products in total at break even point = Total fixed cost / Contribution per unit
= $227,880 / $42.20 per unit
= 5,400 units
How many units each of Super and Supreme must Adams sell to break even?
<u>According to sales mix:</u>
Super = 5,400 * 60% = 3,240 units
Supreme = 5,400 * 40% = 2,160 units.
Answer:
please explain english we dont understand
Explanation:
Answer:
Debt ratio = 56%
Times Interest earned = 5 times
Explanation:
<em>The debt ratio is the proportion of the total assets amount that is financed by debt . It is a measure of financial risk. A company with a high debt ratio (in excess of 50%) is considered financially risky. That is may not be able to meet its short term financial obligations</em>
Debt ratio = Debt/Total assets × 100
= (140,000/250,000)× 100
= 56%
Times interest earned is the number of times the earning before interest and taxes (EBIT) can pay the interest obligation. It is a measure of financial risk. For example, a company with a ratio of less than 3 times might be considered as potentially unable to meets its loan obligation
Times interest earned = Earnings before interest and tax (EBIT)/Interest expense
= 75,000/15,000
= 5 times.
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You should also look for a reward for using their credit card.</span>