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Tju [1.3M]
3 years ago
10

The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $

5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit?
Business
1 answer:
scZoUnD [109]3 years ago
7 0

Answer:

5500 units per month must be sold to earn the required profit

Explanation:

The target profit is the amount of profit that a business wants to earn. To calculate the target profit, we can use the break even analysis and include the factor for target profit under its formula and calculate the units and the dollar sales needed to earn the target profit.

In this case, the target profit is $50000 per month.

The break even in units = Fixed cost / contribution margin per unit

Contribution margin per unit = selling price per unit - variable cost per unit

To calculate units required for target profit, we will add the target profit to the fixed cost and divide by the contribution margin per unit

Target profit units = (fixed cost + target profit) / Contribution margin per unit

So,

Contribution margin per unit = 20 - 10 = $10 per unit

Target profit units = (5000 + 50000) / 10

Target profit units = 5500 units per month

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Answer:

Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.

The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.

Some business strategies that can be implemented by a merger or acquisition are:

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A travel agent wants to determine how much the average client is willing to pay for a weekend at an all-expense paid resort. The
-Dominant- [34]

Answer:

n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121

So the answer for this case would be n=12 rounded up to the next integer

Explanation:

\bar X=2500 represent the sample mean

\mu population mean (variable of interest)

s=840 represent the sample standard deviation

n represent the sample size  

The margin of error is given by this formula:

ME=z_{\alpha/2}\frac{\sigma}{\sqrt{n}}    (a)

And on this case we have that ME =150 and we are interested in order to find the value of n, if we solve n from equation (a) we got:

n=(\frac{z_{\alpha/2} \sigma}{ME})^2   (b)

The critical value for 95% of confidence interval, the significance level if 5% and the critical value would be z_{\alpha/2}=1.960, replacing into formula (b) we got:

n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121

So the answer for this case would be n=12 rounded up to the next integer

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Answer:

(a) Debit Petty cash account for $150; and Credit Bank for $150.

(b) Debit Petty cash account for $122; and Credit Bank for $122.

The correct options are:

a. Fund amount is being reduced.

c. Fund is being eliminated.

Explanation:

(a) Prepare journal entries to record establishment of the fund.

The journal entry will look as follows:

<u>Details                                      Debit ($)          Credit ($)  </u>

Petty cash account                     150

Bank                                                                        150

<em><u>(To record petty cash fund establishment.)                     </u></em>

(b) Prepare journal entries to record reimbursement of the fund at the end of the current period.

Since the fund contained $28 at the end of the current period, we have:

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The journal entry will now look as follows:

<u>Details                                      Debit ($)          Credit ($)   </u>

Petty cash account                      122

Bank                                                                      122

<u><em>(To record petty cash fund reimbursement.)                      </em></u>

c. Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry.

The correct options are:

a. Fund amount is being reduced.

c. Fund is being eliminated.

This is because they both in indicate outflows from the petty cash fund.

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