A US company producing cell phones in Brazil would be counted in the measurement of the United States

Lindon Company is the exclusive distributor for an automotive product that sells for $44.00 per unit and has a CM ratio of 30%.

vlada-n [284]

Answer:

1. $30,80

2. 21,500 units and $946,000

3. 33,000 units and $1,452,000

4. 16,125 units and $709,500 , $1,089,000

Explanation:

The variable expenses per unit

First determine the variable expenses ratio

Variable expenses ratio = 1 - CM ratio

= 1-0.30

= 0.70

Variable expenses per unit = $44.00 ×0.70

= $30,80

Break-even point in unit sales and in dollar sales

break-even point in unit sales = Fixed Costs / Contribution per Unit

= $283,800/ ($44.00×30%)

= $283,800/$13.20

= 21,500

break-even point in in dollar sales = Fixed Costs / Contribution Margin Ratio

= $283,800/0.30

= $946,000

Amount of unit sales and dollar sales is required to attain a target profit of $151,800 per year

Target Sales (Unit Sales) = Fixed Costs + Target Profit / Contribution per Unit

= ($283,800 + $151,800) / $13.20

= 33,000

Target Sales (Dollar Sales) = Fixed Costs + Target Profit / Contribution Margin Ratio

= ($283,800 + $151,800) / 0.30

= $1,452,000

the company’s new break-even point in unit sales and in dollar sales

break-even point in unit sales = Fixed Costs / Contribution per Unit

= $283,800/ ($44.00-$30,80+$4.40)

= $283,800/$17,60

= 16,125

break-even point in in dollar sales = Fixed Costs / Contribution Margin Ratio

= $283,800/($17,60/$44.00)

= $283,800/0.40

= $709,500

dollar sales is required to attain a target profit of $151,800

Target Sales (Dollar Sales) = Fixed Costs + Target Profit / Contribution Margin Ratio

= ($283,800 + $151,800) / 0.40

= $1,089,000

7 0

3 years ago

Read 2 more answers

How many employees does a walmart have at one specific location?

grigory [225]

Well from the looks of it, like 3

No thats a joke, on average Walmart has 20-50 employees on location at once

7 0

3 years ago

A firm’s income statement included the following data. The firm’s average tax rate was 20%. Cost of goods sold $ 9,000 Income ta

Semmy [17]

Answer:

a. $12,000

b. $32,000

c. $17,000

Explanation:

The computations are shown below:

a. Net income = (Income tax paid ÷ Tax rate) – Income tax paid

Net income = ($3,000 ÷ 20%) - $3,000

= $12,000

b. Revenues = Cost of goods sold + Income tax paid + Administration expense + Interest paid + Depreciation + Net income

= $9,000 + $3,000 + $4,000 + $2,000 + $2,000 + $12,000

= $32,000

3. EBIT = Net income + Interest expense + Taxes

= $12,000 + $2,000 + $3,000

= $17,000

8 0

3 years ago

The stockholders' equity of Oriole Company at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000

WINSTONCH [101]

Answer: $1,717,200

Explanation:

The amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend will be:

= 15% × 159,000 × $72

= 0.15 × 159,000 × $72

= $1,717,200

3 0

3 years ago

Assume company can produce any amount above 3.4 units. Naploc purchased the equipment for $12,000 and did not start production y

svetlana [45]

Answer: $12,000

Explanation:

As no production has been started yet, no other costs have been incurred by Naples for the equipment other than the $12,000.

The lowest price that Tebit should offer therefore should be the price that the equipment was purchased for as the equipment has not not been used to produce anything and so has not incurred any variable costs or donated any incremental value that would decrease or increase its value.

7 0

3 years ago