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Anestetic [448]
2 years ago
5

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in ca

lculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Case Unit Price Unit Variable Cost Fixed Costs Depreciation 1 $ 3,340 $ 2,655 $ 7,120,000 $ 1,850,000 2 141 79 86,000 340,000 3 30 7 3,600 760
Business
1 answer:
alex41 [277]2 years ago
8 0

Answer:

Case 1.

Accounting break-even:

= (Fixed Costs + Depreciation) ÷ (Unit Price - Unit Variable Cost)

= ($7,120,000 + $1,850,000) ÷ ($3,340 - $2,655)

= 8,970,000 ÷ 685

= $13,094.8905

cash break-even:

= Fixed Costs ÷  (Unit Price - Unit Variable Cost)

= $7,120,000 ÷ ($3,340 - $2,655)

= $10,394.1606

Case 2.

Accounting break-even:

= (Fixed Costs + Depreciation) ÷ (Unit Price - Unit Variable Cost)

= ($86,000 + $340,000) ÷ ($141 - $79)

= $426,000 ÷ 62

= $6,870.96774

cash break-even:

= Fixed Costs ÷  (Unit Price - Unit Variable Cost)

= $86,000 ÷ ($141 - $79)

= $1,387.09677

Case 3.

Accounting break-even:

= (Fixed Costs + Depreciation) ÷ (Unit Price - Unit Variable Cost)

= ($3,600 + $760) ÷ ($30 - $7)

= $4,360 ÷ 23

= $189.565217

cash break-even:

= Fixed Costs ÷  (Unit Price - Unit Variable Cost)

= $3,600 ÷ ($30 - $7)

= $156.521739

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Tradable permits are likely to result in less inefficiency, relative to a pollution tax, when ... a. the marginal costs of damag
Andrej [43]

Answer:

a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.

Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.

Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

3 0
2 years ago
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a
Sladkaya [172]

Answer:

Net market value of firm = $903,196

Explanation:

Items to determine the Market value of the firm are as below

 Item                                        Amount

Current value of building        $1,440,000

Current value of equipment    $467,000

Market value of inventory       $205,000

Cash in hand                            $10,500

98% of debtors                         $220,696

Less: Owings                           -<u>$1,440,000</u>

Net market value of firm        <u>$903,196</u>

5 0
2 years ago
Item 24 Time Remaining 31 minutes 59 seconds 00:31:59 Item 24 Item 24 Time Remaining 31 minutes 59 seconds 00:31:59 Real GDP per
skad [1K]

Answer:

After 100 years, real GDP per person in Alpha is <u>4 TIMES</u> smaller than real GDP per person in Omega.

Explanation:

Current real GDP per capita in Alpha = $2,000

in 100 years, the real GDP per capita in Alpha = $2,000 x (1 + 1.5%)¹⁰⁰ = $5,848.87

Current real GDP per capita in Omega = $2,000

in 100 years, the real GDP per capita in Omega = $2,000 x (1 + 2.5%)¹⁰⁰ = $23,627.43

Alpha's real GDP per capita is 4 times smaller than Omega's = $23,627.43 / $5,848.87 = 4.04 times

*I used the future value formula: FV = PV (1 + r)ⁿ

7 0
3 years ago
A factory machine was purchased for $393000 on January 1, 2018. It was estimated that it would have a $74000 salvage value at th
sweet [91]

Answer:

Annual depreciation= $41,470

Explanation:

Giving the following information:

Purchasing price= $393,000

Salvage value= $74,000

The machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.

To calculate the depreciation expense using the units of activity method, we need to use the following formula on each year:

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

Annual depreciation= [(393,000 - 74,000)/30,000]*3,900

Annual depreciation= $41,470

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In Sid's Surf Shop, there is a 10-foot long surf board on legs with swimwear on it near the entrance to the department where sur
shtirl [24]

Answer: Free Standing display Unit.

Explanation:

Free standing display units( FSDU), also known as Floor Standing Display Units are cost effective ways used to showcase a product, they are noticeable ways of advertising by placing a brand in such a manner or position that will be most attractive to customers or target customers. Such brands are specifically placed in customer's way, FSDU are special customized display units that can be easily made from cardboards or other materials which can be formex stands.

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