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Anestetic [448]
3 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]3 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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g If the beginning work in process includes 200 units that are 20% complete with respect to conversion and 30% complete with res
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Answer:

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Explanation:

Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.

Step 1 : Determine units completed and transferred

Units Completed = Beginning units + Units Started - Ending units

                              = 200 + 1,000 - 100

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Step 2 : Calculate equivalent units of production with respect to conversion costs

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Ending units (100 x 40%)                                         40

Total equivalent units of conversion costs         1,140

thus,

the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.

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A high-school student, mows lawns for families in his neighborhood. the going rate is $12 for each lawn-mowing service. would li
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The event that will happen if he raised his price is If Kyle raises his price he will lose all of his customers. All of the people want to buy product who is low costing because they can save much money and they hate buying things that is so much expensive. The answer to this question is  if Kyle raises his price he will lose all of his customers.
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All else being equal, a company with a low operating leverage will have:
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Answer:

c) relatively high variable costs

Explanation:

Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.

A business with a large amount of fixed cost relative to variable is said to have  a high operating leverage . For such business, operating income would  be more volatile because the operating income would not increase in commensurate proportion as sales revenue.

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Rouse Corporation's December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000
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Answer:

See bellow

Explanation:

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