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vichka [17]
3 years ago
13

Cassius Corporation has provided the following contribution format income statement. Assume that the following information is wi

thin the relevant range. Sales (7,000 units) $ 210,000 Variable expenses 136,500 Contribution margin 73,500 Fixed expenses 67,200 Net operating income $ 6,300 The number of units that must be sold to achieve a target profit of $31,500 is closest to______________.
Business
1 answer:
Romashka [77]3 years ago
8 0

Answer:

9,400 units

Explanation:

The breakeven point is the number of units that must be sold for the company to make neither a loss nor a profit. A target profit is the net of the sales less the sum of the fixed and variable expenses. The contribution margin  is the difference between the sales and variable cost.

Sales per unit = $210,000/7000 = $30

Variable cost per unit = $136,500/7000 = $19.50

Let the number of units to be sold to achieve the profit target be x

30x - 19.5x - 67200 = 31500

10.5x = 98700

x = 98700/10.5

x = 9,400 units

You might be interested in
Net operating income computed under variable costing would exceed net operating income computed using absorption costing if: Mul
klasskru [66]

Answer:

Units sold exceeds units produced

Explanation:

The net operating income under variable costing system is always higher than absorption costing system when units sold exceeds units produced. As variable cost doesn't include fixed manufacturing overhead unlike absorption costing, when the net operating income under it now exceed that of absorption, it's definitely am increase in sales that's responsible for that.

8 0
3 years ago
Congress wishes to impose regulations on the insurance industry. What test would the United State Supreme Court use to determine
abruzzese [7]

Answer:

Three part test.

The outcome: if the three requirements are not met, then there is not point the Government should interfere.

At the end, the law will be held.

Explanation:

In some cases, the courts are allowed to protect individual, company or business organization from Government interrupting with these individuals or business organization "fundamental right" and this is the "substantive due process rights " of insurance companies as mentioned in the question above.

The test that the United State Supreme Court can use to determine whether the regulations they want to enact would violate the substantive due process rights of insurance companies is what is known as the THREE PARR TEST.

THE THREE PART TEST has its root from cases such as that of Pasgraf V Long Island Railroad co. The three part test involves three main subjects and they are;

=> foreseeability: are the policies in which insurance companies work going to affect the consumers in the future?

=> proximity: what kind of relationship do the insurance companies have with there consumers?

=> fairness: are these policies just and fair?

CONCLUSION: if the three requirements are not met, then there is not point the Government should interfere.

6 0
3 years ago
Alpha Company manufactures Product P and sells it in packs of 10 units. The actual results for the first week in January are as
kaheart [24]

Answer:67500

The right solution is "13,675 U".

Explanation:

According to the question,

The standard material cost will be:

= 25000\times (\frac{90000}{30000} )\times 0.90

= 25000\times 30000\times 0.90

= 67,500

The actual material cost will be:

= 95500\times 0.85

= 81,175

hence,

The total material price variance will be:

= Actual \ cost - Standard \ cost

= 81175-67500

= $13,675 (Unfavorable)

3 0
3 years ago
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A.
icang [17]

Answer:

A. she assumes that the employees are lazy and just throw in some random ideas when they have discussion meetings about their new product/service or an upgrade of the organisation's product/service. therefore since she assumes that they don't actually think to help give ideas, she decides that it is best to scold them when they aren't trying their best.

B. she assumes that her employees are responsible enough to find a way to keep themselves entertained while finishing their tasks.

C. she dosent trust her employees yet to let them take control without her being needed since she may assume that they aren't experienced enough or responsible enough to take huge responsibility yet.

D. she assumes that since they want to leave early all the time, they may not like their job very much and would want to get out of the company as soon as possible since there would be a chance that they would be stopped to help with extra work.

8 0
3 years ago
Arthur is a tax preparer doing business as a sole proprietor. Under what circumstances could he receive a pass-through deduction
mestny [16]

It should be noted that the condition where he'll get a pass-through deduction is that he has a taxable income.

A pass-through deduction refers to a business that isn't subject to corporate income tax. Rather, such a business is taxed at individual income tax rates.

From the information given, the condition where Arthur will get a pass-through deduction is that he has a taxable income. Also, the deduction cannot be more than 20% of the taxable income.

Learn more about taxes on:

brainly.com/question/9437038

4 0
2 years ago
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