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3 years ago

LO 3.3When variable costs increase and all other variables remain unchanged, the break-even point will ________.

Business

1 answer:

Anika [276]3 years ago

6 0

Answer:

increase

Explanation:

Break-even calculation is use to determine the minimum number of units a company needs to sell in order to cover the fixed costs. The formula for break-even point is as follows;

Break- even = Fixed cost/ (Selling price - Variable cost)

If you increase variable cost (VC) while keeping the selling price and fixed cost constant, the denominator amount will be smaller making the break- even point to increase.

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The Timken Company has announced a rights offer to raise $5.1 million. The company's stock currently sells for $34 per share, th

omeli [17]

Answer:

Right price =$33.50

Explanation:

<em>The theoretical ex-right price is the weighted average price at which shares are expected to settle after a right-issue,</em>

<em>It is the weighted average price of value of shares of the before-right price and the right price</em>

Ex-rights price

=(Before-right value of shares + Proceed from rights )/Total number of shares after rights issue

Number of rights issue units = amount to be raised /Right price per share

= $5.1 m/$30 = 170,000 units

Before - rights value = 1,207,000 × $34 = 41,038,000

Proceed from rights = 170,000 × $30 = 5,100,000

The ex-right price = (41,038,000 + 5,100,00)/(1,207,000 +170,000) units

Right price =$33.50

8 0

3 years ago

Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's cash flow from operating activities for 201

Helen [10]

The firm's cash flow from operating activities for 2012 was D. $618000.

<h3>What Is the Definition of Cash Flow From Operating Activities (CFO)?</h3>

The cash flow from operating activities formula shows you whether or not your core business activities are successful. If your company generates a positive cash flow from operations, you may be able to fund expansion projects, launch new products, pay dividends, reduce debt, and so on.

The amount of money a company earns from ongoing, regular business activities such as manufacturing and selling goods or providing a service to customers is referred to as cash flow from operating activities (CFO).

It should be noted that the cash flow from operating activities is calculated thus:

= Operating Income + Depreciation – Taxes + Change in Working Capital

= $500000 + $140000 - $50000 + $28000

= $618000.

Learn more about cash flow on:

brainly.com/question/735261

#SPJ1

Flathead Lake Manufacturing Company has the following in it's financial statement:

Operating Income = $500000 Depreciation = $140000

Taxes = $50000

Change in Working Capital = $28000

The firm's cash flow from operating activities for 2012 was _______. $749,000$719,000$744,000$618,000

7 0

1 year ago

If a family spends its entire budget in a given time frame, the family can afford either 90 cans of soup or 60 frozen dinners. A

g100num [7]

Answer:

0.67

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

If the family buys one can of soup, the opportunity cost is the frozen food forgone.

Opportunity cost of one can of soup = 60 / 90 = 0.67

I hope my answer helps you

8 0

3 years ago

You have a team that has high cultural diversity and high interdependence, increasing the risk of disagreements in the team. Kno

Dominik [7]

Answer:

A. Conflict resolution abilities

Explanation:

Conflict resolution ability is the capacity of a person or group of persons to effectively handle and manage the conflicts of interest or disagreement between two or more persons or two or more groups.

There are several skills used by people who have conflict resolution abilities such as COMMUNICATION, COMPROMISE, COLLABORATION, ACCOMMODATION ETC.

4 0

3 years ago

Read 2 more answers

C has a $100,000 traditional whole life insurance policy with a $30,000 cash surrender value. He applies for and receives a $10,

Ivenika [448]

Answer:

If C were disabled, his beneficiaries would receive $70,000, less any outstanding interest charges

Explanation:

Policy loans can generally amount up to 100% of the cash surrender value of the policy, in this case C only requested $10,000 (1/3 of the cash value). This type of loan is fully collateralized by the cash value of the policy and the borrower can even miss some payments or pay on a later date because interests keep adding.

This type of loan can carry a fixed or variable interest rate, depends on the insurer.

If C surrenders his policy, he will receive the total cash surrender value minus the loan amount = $30,000 - $10,000 = $20,000

If C dies, his beneficiaries would receive the full benefits minus the loan amount = $100,000 - $10,000 = $90,000

3 0

3 years ago