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pentagon [3]
3 years ago
6

Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N O Unit sal

es price $ 7 $ 4 $ 6 Unit variable costs 3 2 3 Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand): $ 20,000. $289,000. $400,000. $629,000. $740,000.
Business
1 answer:
Ivahew [28]3 years ago
3 0

Answer:

The answer is 629,000.

Explanation:

  • For each unit of M sold, the price is 7 and the cost is 3, so the contribution margin is 4;
  • For each unit of N sold, the price is 4 and the cost is 2, so the contribution margin is 2;
  • For each unit of O sold, the price is 6 and the cost is 3, so the contribution margin is 3;
  • With the mix, 1 unit of sale contributes (contribution per mix) 3*M+1*N+2*O = 3*4+1*2+2*3 = 20

For covering the 340,000 of fixed costs, you have to sale 340,000/20 units. That's equal to 17,000 units.

Each unit of sales is equal to (price per mix) 7*M+4*N+6*O = 7*3+4*1+6*2 = 37. So, with 17,000 units, the total sales will be 17,000 * 37 = 629,000.

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Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in y
Airida [17]

Answer:

225,000 shares

Explanation:

A company's shares outstanding refers to the total number of shares investors currently own.

Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in year 2.

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At December 31, year 3, the number of shares of Beck's common stock were outstanding is

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less: Treasury Stock of    75,000

Outstanding Stock = 225,000 shares

5 0
3 years ago
May 1, 2021, Bibby Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purch
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Answer:

$7.38

Explanation:

The average cost method recalculates a new cost per unit with each and every purchase made. This new costs would then be used to calculate the costs of goods sold and inventory value.

Average cost per unit = Total Costs ÷ Units available for sale

                                    = (200 x  $7 + 800 x $7 + 600  x $8) ÷ 1,600

                                    = $7.375 or $7.38

The average cost per unit for May is $7.38

4 0
3 years ago
Consider the portfolio choice theory of money demand. how do you think the demand for money will be affected during a hyperinfla
AleksAgata [21]

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The demand for money decreases sharply.

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3 years ago
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8 0
3 years ago
Jameson Company uses average cost and a perpetual system. On January 1, the company had 600 units of inventory at an average cos
Leni [432]

Answer:

the average cost per unit that should be used to determine the cost of the units sold on January 28 is $ 59.00

Explanation:

The Weighted Average Cost Method calculates the new cost of Inventory with each purchase of Inventory.

The Perpetual Inventory System records the cost of inventory sold with each sale made.

<u>Calculation of  the new cost of Inventory with each purchase of Inventory :</u>

January 10:

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Therefore the average cost per unit that should be used to determine the cost of the units sold on January 28 is $ 59.00

3 0
3 years ago
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