Answer:
C. $65,800
Explanation:
Fixed csot: those which do not change for a relevant range with the production output. They aer constant.
Factory insurance 21,000
Factory insurance 13,000
Factory manager's salary 10,800
Janitor's salary 5,000
Property taxes: <u> 16,000 </u>
Total Fixed Cost: 65,800
The direct materials and direct labor are variable cost as they drop to zero if no unit is produced.
Same goes with packaging cost, if no unit is produced then, no packagin is needed.
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
Open-ended credit is credit that can be used repeatedly.
Example: A credit card
Close-ended credit is credit that has to be paid in full by a certain date
Example: A house loan (mortgage)
Answer:
1. The name of Walmart’s CEO and President is Doug McMillon.
2. For the fiscal 2018 the company generated $28.3 billion as operating cash flow.
3. The amount of provisional benefit recorded by Walmart as a result of tax reform was $207 million. This amount was for both the full quarter and full year.
4. For fiscal 2018 the company had employed 2.3 million associates across the world.
5. Gross margin = gross margin/net sales.
Gross margin = net sales – cost of goods sold.
Gross margin % for Q418:
Net sales (excluding membership and other income) 135,150.00
less: cost of sales -102,640.00
Gross margin 32,510.00
Gross margin % (gross margin/net sales) 24.05
Answer:
rate of return on lifetime subscription purchase is 6.89 %
Explanation:
given data
lifetime subscription = $1000
magazine costs = $64.50 per year
to find out
rate of return on a life subscription purchased
solution
we know that rate of return is obtain by the equation
the present value $64.5 for infinite years to 1000
so
1000 = 64.5 + 
+ 
+ 
+ ................ ∞ + 
and
r = 
so by using geometric series for the infinity term
1000 = 
r = 0.9355
so r =
0.9355 =
i = 6.89 %
so rate of return on lifetime subscription purchase is 6.89 %
