Answer:
a) Break even = 480.5 units ≈ 481 Million units
b) Breakeven = 8,014,162,500 units
Explanation:
calculations are in millions
Breakeven = fixed costs / contribution per unit
selling price per unit = $47063/400 = $117.66
Variable cost = ($18756*75%) + ($31755*50%) = $14067 +15877.50 =$29944.5/400 units =$74.86
contribution = $117.66-$74.86 = $42.80
fixed costs = ( $18756*25%) +( $31755*50%) = $4689 + 15877.50 = $20566.50
Breakeven = $20566.50/$42.80 = 480.5 units
b) calculations
fixed costs = 20,566,500 + 300,000,000
= 320,566,500
break even = $320,566,500 /0.04
= 8,014,162,500 units
<span>The answer is a. complementary </span>
Answer:
$4,908,000
Explanation:
The computation of accumulated depreciation expense for this purchase is shown below:-
Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)
= (($40,900,000 - $4,090,000) ÷ 15) × 2
= $36,810,000 ÷ 15 × 2
= $4,908,000
Therefore for computing the depreciation expense we simply applied the above formula.
To prepare an income statement, you will need to generate a trial balance report, calculate your revenue, determine the cost of goods sold, calculate the gross margin, include operating expenses, calculate your income, include income taxes, calculate net income and lastly finalize your income statement with business details and the reporting period.
If you can't find the time to make one from scratch, there are templates that can be used to help.
gross margin : the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.
net income : net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses.
