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Anna35 [415]
3 years ago
6

An entity has decided to focus strictly on producing and selling one type of teddy bear. For the upcoming year, the entity hopes

to make a 25% profit on sales. Fixed costs are set at $51,000, and variable costs are $9.50 per unit. If teddy bears are sold at $15 each, how many bears must be sold to meet the profit goal?
Business
1 answer:
Yuki888 [10]3 years ago
8 0

Answer:

29,143

Explanation:

Profit target = 25% on sales

Fixed cost = $51,000

Variable cost = $9.50 per unit

Sales price per unit = $15

To achieve profit target, let the number of units sold be y

Total sales = 15y

Total variable cost = 9.5y

Profit = 0.25 × 15y

         = 3.75y

Sales - Cost = profit

15y - (51000 + 9.5y) = 3.75y

15y - 9.5y - 3.75y = 51000

1.75y = 51000

y = 51000/1.75

y = 29143

29,143 bears must be sold to meet the profit goal.

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Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income​ statement: Ke
prohojiy [21]

Answer:

<em>Cash flow from operating activities:</em>  35,400‬

Explanation:

Net Income                 48,900

<u>non-monetary terms</u>

gain on sale of plant assets (5,300)

depreciation expense          14,000

changes in working capital:

current assest increase:     (21,000)

current liabilities decrease   (1,200)

<em>Cash flow from operating activities:</em>  35,400‬

Increase of current assets mean cash was used to acquired.

Decrease in current liabiltiies represnt cash erogation to settle them.

4 0
3 years ago
The balance sheet below reflects Zee Bank after its purchase of $50 million in government securities from the Fed. Assume a requ
UkoKoshka [18]

Answer:

$500 million

Explanation:

The solution of the money supply and its effect is here below:-

Decrease in money supply = $50 million ÷ reserve ratio

= $50 million ÷ 10%

= $500 million

If $50 million were used to repay loans, that will have raised money supply. Thus, buying $50 million in government securities from the fed reduces the supply of capital.

3 0
3 years ago
A different ethanol processing facility costs $800,000 to construct but will instead last forever.Every year (starting the year
iragen [17]

Answer:

r = 5%

Explanation:

Construction cost 800.000

# of barrels produced 10.000

Price per barrel $4

let the interest rate = r

Equate the net present value = 0

800000 = 10000 x 4/(1 + r) + 40000/(1 + r)2 + .......

800000 = 10000 x 4/r

r = 5%

8 0
2 years ago
The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th
AveGali [126]

Choosing when to start a project is related to the investment timing decision.

<h3>Is an investment's timing crucial?</h3>

The following are some advantages of market timing strategy:

  • Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
  • When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>

The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.

<h3>What is an example of an investment decision?</h3>
  •  Decisions on investments can be made for the long- or short-term.
  • A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
  • A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.

learn more about investment decision here

<u>brainly.com/question/24246300</u>

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5 0
2 years ago
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales
Dvinal [7]

Answer:

The company's cost to produce 1,000 gallons of product B is $7,131.25.

Explanation:

This can be calculatd as follows:

Product B share of joint cost = (Product B sales value / (Product B sales value + Product A sales value)) * Cost to split-off point = ($32.20 / ($32.20 + $3.00)) * $5,500 = 0.914772727272727 * $5,500 = 5,031.25

Product B total additional separable process beyond split-off = Additional cost per gallon * Number of gallons of product B produced = $2.10 * 1,000 = $2,100

Therefore, we have:

Company's cost to produce 1,000 gallons of product B = Product B share of joint cost + Product B total additional separable process beyond split-off = 5,031.25 + $2,100 = $7,131.25

Therefore, the company's cost to produce 1,000 gallons of product B is $7,131.25.

4 0
2 years ago
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