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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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valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

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using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77  x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0
3 years ago
The par value or stated value of stock represents the amount of legal capital that a corporation must maintain for the protectio
ohaa [14]

Answer:

True

Explanation:

This is the value of stock or share that was set by the owners of a corporation at the point of registration of the company. It is the price that is stated in the corporation's article of association and also in the share certificate. The par value of a share has no relationship with the market value as they can be far apart.

The par value is a value specified by law for the protection of the people who might want to extend credit to the corporation.

6 0
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Answer:

C. Both (i) and (ii) are true

Explanation:

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Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.

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Answer:

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5. Manage Your Food Orders

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Answer:

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8 0
3 years ago
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