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3 years ago

Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below:

Business

1 answer:

ivann1987 [24]3 years ago

4 0

Answer:

Break-even point (dollars)= $219,656

Explanation:

Giving the following information:

Division N

Sales= $223,000

Variable expenses= 86,970

Contribution margin= 136,030

Traceable fixed expenses= 105,000

Segment margin= 31,030

Common fixed expenses= 28,990

To calculate the break-even point in dollars for Division N, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= (sales - variable costs) / sales

Break-even point (dollars)= (105,000 + 28,990) / (136,030/223,000)

Break-even point (dollars)= $219,656

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3 years ago

Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du

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Answer:

c. 11.05%

Explanation:

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4 years ago

Compute conversion costs given the following data: direct materials, $381,400; direct labor, $196,500; factory overhead, $194,00

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Answer:

Conversion costs: c.$390,500

Explanation:

Conversion costs are those production costs required to convert raw material to finished goods. Conversion costs include direct labor and manufacturing overheads costs.

Conversion Costs = Direct Labor cost + Manufacturing Overheads cost= Total Manufacturing Costs – Direct Material cost

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3 years ago

Which of the following expressions is correct?A. economic profit = total revenue - implicit costsB. accounting profit = economic

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Answer:

B. accounting profit = economic profit + implicit costs

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Implicit cost are the cost that already incurred but is not necessary to report such as opportunity cost. Whereas explicit cost are those expenses which involve the financial transaction and it is being paid.

Accounting profit is calculated by deducting the explicit cost from the revenue as follow.

* Accounting Profit = Revenue - Explicit cost

Economic profit is calculated by deducting both explicit and implicit costs from revenue.

Economic Profit = Revenue - Explicit costs - Implicit cost

So, using Accounting profit formula we conclude that

Economic Profit = (Revenue - Explicit costs) - Implicit cost

Economic Profit = *Accounting profit - Implicit costs

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3 years ago