1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pachacha [2.7K]
3 years ago
15

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial

difficulty for some time. The company’s contribution format income statement for the most recent month is given below:
Sales (12,800 units × $20 per unit) $ 256,000
Variable expenses 128,000
Contribution margin 128,000
Fixed expenses 143,000
Net operating loss $ (15,000 )

Compute the company's CM ratio and its break-even point in both units and dollars.
Business
1 answer:
arlik [135]3 years ago
6 0

Answer:

The company's CM ratio: 0.5

Its break-even point in units: 14,300 units and in dollars:  $286,000

Explanation:

Variable expense per unit = Variable expenses/ number of units = $128,000/12,800 = $10

The contribution margin ratio is calculated by using following formula:

Contribution margin ratio = (Sales - Total Variable cost)/Sales  = ($256,000 - $128,000)/$256,000 = 0.5

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) =  $143,000/($20 - $10) = 14,300 units

Break-even point in dollars = 14,300 units x Selling price per unit = 14,300 x $20 = $286,000

You might be interested in
Nathan would like to become a doctor but needs help financing his education. Which option could allow Nathan to achieve his goal
scZoUnD [109]
A enlist in the military. If you enlist in the US military they will cover the costs of your education
4 0
2 years ago
Read 2 more answers
SCI just paid a dividend of $2.16 per share, and its annual dividend is expected to grow at a constant rate of 4.50% per year. I
guajiro [1.7K]

Answer:

$33.44

Explanation:

The computation of the intrinsic value of the share is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.16 + $2.16 × 4.50%

= $2.16 + $0.0972

= $2.2572

The required rate of return is 11.25%

And, the growth rate is 4.50%

So, the intrinsic value is

= ($2.2572) ÷ (11.25% - 4.50)

= $33.44

8 0
3 years ago
When the economy is at equilibrium, a) inventories must equal zero. B) there are no leakages. C) leakages equal aggregate demand
jeyben [28]

Answer:D) leakages equal injections

Explanation:

6 0
2 years ago
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
Leni [432]

As a rule of thumb, an entrepreneuer should reevaluate her compensation package yearly. It's worthwhile to reevaluate because you may need to make changes to your plan if you are making more or less money. As your business grows, as an entreprenuer you are able to take a larger cut of your money or reinvest it elsewhere.

7 0
3 years ago
Read 2 more answers
Wassenaar Arrangement HIPAA PCI DSS FERPA GLBA SOX A. Provides safeguards for credit card transactions B. controls the way finan
Amiraneli [1.4K]

Your question is quite unclear, However it would be inferred you want a match of the functions of the abbreviated organizations.

Explanation:

Wassenaar Arrangement

C. International agreement that controls the export of encryption technologies; in order  to combat terrorism.

HIPIAAB (Health Insurance Portability and Accountability Act).

D. Provides data privacy for safeguarding medical information

PCI DSS (Payment Card Industry Data Security Standard).

A. Provides safeguards for credit card transactions

GLBAD (Gramm-Leach-Bliley Act)

B. controls the way financial institutions deal with private information of individuals.

SOX (Sarbanes-Oxley Act).

F. protects investors from fraudulent accounting activities.

8 0
3 years ago
Other questions:
  • Earlier, it was noted that you might be in the position where your firm is contemplating a layoff, though employees are not awar
    11·1 answer
  • resented below is information from Perez Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with term
    8·1 answer
  • Mark runs a home improvement business. He is happy with the level of business he receives, but he wants to learn more about his
    6·1 answer
  • A licensee using a franchise trade name, or advertising as a member of a cooperative group, must clearly and unmistakably indica
    7·1 answer
  • A trader who places an order to sell 100 shares of abc at $68 when the market of price of abc stock is at $64 has placed a(n) __
    7·1 answer
  • A firm will not shut down in the longminus?run as long as the firms? revenue:
    10·1 answer
  • This document summarizes why the project is important by describing the benefits of a selected component, and is used as a basis
    12·1 answer
  • Three years ago, Joe bought a 5-year, 10% coupon paid semiannually bond for $1000. Currently, with interest rates having risen s
    15·1 answer
  • A sum of money was shared
    12·2 answers
  • Cheetah Copy purchased a new copy machine. The new machine cost $134,000 including installation. The company estimates the equip
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!