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anzhelika [568]
4 years ago
9

Northern pacific fixtures corporation sells a single product for $28 per unit. if variable expenses are 65% of sales and fixed e

xpenses total $9,800, the break-even point is:
Business
1 answer:
wel4 years ago
4 0
$15,077.  $18,200.  $9,800.  $28,000. (If variable expenses are 65% of sales, then contribution margin ratio must be 35%. Fixed cost of $9,800 divided by .35 = <span>$28,000</span>
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Trendy Toes produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each pa
harina [27]

Answer:

Results are below.

Explanation:

<u>To calculate the contribution margin and contribution margin ratio we need to use the following formulas:</u>

contribution margin= selling price - unitary variable cost

contribution margin= 2 - 1.2= 0.8

contribution margin ratio= contribution margin / selling price

contribution margin ratio= 0.8 / 2

contribution margin ratio= 0.4

<u>Now, we can calculate the break-even point in units and dollars:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 85,000 / 0.8

Break-even point in units= 106,250

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

Break-even point (dollars)= 85,000 / 0.4

Break-even point (dollars)= $212,500

<u>Finally, the desired profit is $26,000:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= 111,000 / 0.8

Break-even point in units= 138,750

4 0
3 years ago
______ are frequently used to encourage key managers to maximize the value of the firm's stock.
valentina_108 [34]

Key managers are frequently encouraged to increase the value of the company's stock through the use of stock options.

<h3>What is the stock of a company?</h3>

In the Underwriting Agreement, "Firm Shares" refers to the number of newly issued shares of Class A Common Stock that are a part of the Public Offering. Except upon tender of payment by the Underwriters for all the Firm Shares, the Company shall not be required to sell or deliver the Firm Shares.

The Underwriters consent to buying Firm Shares from the Company. The term "Closing Date" refers to the time and date of delivery of the Firm Shares and Additional Shares if the Option Closing Date occurs at the same time as the Closing Date but not earlier than the Closing Date.

To learn more about firm's stock, refer to:

brainly.com/question/14768722

#SPJ4

4 0
1 year ago
_______ are items owed to a creditor. ________ are items owned by a company. ________ represents owners' claims to company resou
zloy xaker [14]
Liabilities are items owed to a creditor. Assets are items owned by a company. Stockholders' equity represents owners' claims to company resources.

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
4 0
3 years ago
Porter Incorporated issued $210,000 of 6 percent, 10-year, callable bonds on January 1, Year 1. The bonds were issued at their f
pshichka [43]

Answer:

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

Explanation:

Porter Incorporated Journal entries

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

(102%×$210,000=$214,200)

7 0
4 years ago
A stock has an expected return of 11.1 percent, its beta is .86, and the risk-free rate is 5.55 percent. What must the expected
mylen [45]

Answer:

12%

Explanation:

The computation of the expected return on the market is shown below:

As we know that

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)

So, the market rate of return is

= (11.1% - 5.55%) ÷ 0.86 + 5.55%

= 12%

Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium

5 0
4 years ago
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