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Fudgin [204]
3 years ago
14

Breakeven and leverage wingler communications corporation (wcc) produces premium stereo headphones that sell for $28 80 per set,

and this year's sales are expected to be 450,000 units. variable production costs for the expected sales under present production methods are estimated at $10,200,000, and fixed production (operating) costs at present are
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
8 0
<span>Answer: At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole. units At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole. Old plan units New plan with debt financing units New plan with stock financing units On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places. EPSDebt = $ EPSStock = $</span>
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Radovilsky Manufacturing Company , in Hayward, California, makes flashing lights for toys. The company operates its production f
IRISSAK [1]

Answer:

Explanation:

Given Demand D = 12,500 lights per year

Set up cost S = $51

Cost of each light (C) = $1 .05

Holding cost = $0.1 per light per year

Production p= 100 lights per day

Usage (d) = 12,500/300 days = 41.66(round up to 42)

= 42 lights per day

a) What is the optimal sizeof the production run?

Q =√{(2×D×S) / (H(1-(d / p)))}

Q =√{(2×12500×51)/(0.1(1-(42/100)))}

= 4688.577 = 4689 units

Q = 4689 units

b) What is the average holding cost per year?

Average holding cost per year = average inventory level * H

= (Q/2)H[1- (d/p)]

= (4689/2)0.1[1-(42/100)]

= $135.98

c) What is the average setup cost per year?

average setup cost per year = (D/Q)S

= (12,500/4689)× 51

= 135.97

d) What is the total cost per year, including the cost of the lights?

Total cost = D*C + total set up cost + total holding cost

12,500 ×1.05 + 135.98 + 135.97

Total cost = $ 13,396.95

6 0
3 years ago
Abramov Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold a
brilliants [131]

Answer:

Option c is correct

$245,680

Explanation:

The total manufacturing cost = $737,040.

Units produced = 22,200

Cost per unit before adjustment for absorbed overhead=

=$737,040./22,200 units

=$33.2 per unit

Cost of goods sold before adjustment for overheads

= (cost per unit × units sold)

= $33.2 × 7,400

= $245,680

3 0
3 years ago
Read 2 more answers
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The moral issues seeing these partners are as per the following; allegations of separation, administration offense, renumeration, and wellbeing concerns. As a type of harm control, Walmart discharged a promoting effort to accuse the organization as an "American example of overcoming adversity." After statistical surveying uncovered Walmart's image picture had lost bond between taught grown-ups, Walmart industrialized in a multimillion publicizing effort called "The Real Walmart."
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3 years ago
It is important that the implementation planning section of a systems proposal report adress
melisa1 [442]

It is crucial and vital that the implementation of the planning section of a systems proposal report address: training, communication, and support of the system.

<h3>What is the planning section of a system?</h3>

The planning section of a system is an integral part of action planning. The Head of the Planning Section conducts briefing sessions, offers crucial advice on targets, and predicts future requirements.

The Planning Section is a member of the leadership team in charge of setting incident objectives and strategies for the specified operating period.

Therefore, we can conclude that it is crucial and vital that the implementation of the planning section of a systems proposal report address: training, communication, and support of the system.

Learn more about the Planning section here:

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Which of the following types of business ownership has the highest personal liability risk?
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A. A sole proprietorship <span>is the type of business ownership that has the highest personal liability risk. You are on your own there, and if you make a mistake, the who business fails. </span>
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