1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solmaris [256]
3 years ago
10

The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products. The expected cost a

nd revenue data for the F-27 fan are as follows: Annual sales 4,000 units Unit selling price $ 58 Unit variable costs: Production $ 34 Selling $ 4 Avoidable fixed costs per year: Production $20,000 Selling $30,000 Allocated common fixed costs per year $55,000 If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7,000 per year. At what selling price would the new product be just breaking even? Multiple Choice $52.25 per unit $50.50 per unit $55.75 per unit $49.00 per unit
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

$52.25 per unit

Explanation:

The computation of the selling price is shown below:

= (Unit production variable cost + unit selling variable cost) + {(Production fixed cost + selling fixed cost + Contribution margin) ÷ (annual sales units)}

= $34 + $4 + {($20,000+ $30,000 + $7,000) ÷ (4,000 units)}

= $38 + $14.25

= $52.25

We simply add the variable cost, contribution margin, and the fixed cost

You might be interested in
The City of McNeely sold bonds in the amount of $25,000,000 to finance the construction of a public health center. The bonds are
Orlov [11]

Answer:

1. To Record the cash received on issue of bonds.

Date     Account Titles and Explanation          Debit              Credit

             Cash                                                  $25,000,000

                   Other financing uses-Bond proceeds                  $25,000,000

              <em>(To record the cash received on the issue of Bond)</em>

2. To Record the inception of the construction contract.

Date     Account Titles and Explanation          Debit              Credit

             Encumbrances                                 $22,000,000

                       Encumbrances outstanding                           $22,000,000

             <em>(To Record the inception of the construction contract) </em>

3. To Record the encumbrances outstanding on account of the construction contract.

Date     Account Titles and Explanation      Debit             Credit

            Encumbrances outstanding        $12,000,000

                    Encumbrances                                              $12,000,000

          <em> (To Record the encumbrances outstanding on account) </em>

Date     Account Titles and Explanation        Debit            Credit

              Construction Expenditure            $12,000,000

                       Construction payable                                 $12,000,000

          <em> (To Record the encumbrances outstanding on account) </em>

<em />

4. To Record the transfer of the balance in the fund balance account.

Date     Account Titles and Explanation        Debit            Credit

             Other Financing sources -            $25,000,000

             Proceed of Bonds

                     Fund balance - Restricted                            $13,000,000

                     Construction Expenditure                             $12,000,000

           <em> (To record the construction expenses paid)</em>

7 0
3 years ago
Tanner-UNF Corporation acquired as an investment $260 million of 5% bonds, dated July 1, on July 1, 2021. Company management is
nordsb [41]

Answer:

Tanner-UNF Corporation

a. Journal Entry

July 1, 2021:

Debit Investment in Bonds $260 million

Credit Discount on bonds $60 million

Credit Cash $200 million

To record the acquisition of bonds.

December 31, 2021:

Debit Cash $6.5 million

Debit Discount on bonds $0.5 million

Credit Interest Revenue $7 million

To record cash received from bond investment and amortization of the bond discount for the semi-period.

b. Debit Unrealized Bonds Investment Loss $45 million

Credit Investment in Bonds $45 million

To record the unrealized loss on the investments.

Explanation:

a) Data and Calculations:

July 1, 2021:

Face value of bonds = $260 million

Interest rate = 5%

Market interest rate = 7%

Payment for the bonds = $200 million

Discount on bonds = $60 million

December 31, 2021:

Semi-annual interest cash receipts = $6.5 million ($260m * 2.5%)

Semi-annual interest revenue = $7 million ($200m * 3.5%)

Amortization of bonds discount = $0.5 ($7 million - $6.5 million)

Fair value of bonds = $215 million

3 0
3 years ago
Claude purchased raw land three years ago for $1,500,000 to develop into lots and sell to individuals planning to buildtheir dre
dmitriy555 [2]

Answer and Explanation:

Clude had purchased the raw land three years ago for $150000 and treated it like a inventory. she constributed the property to south peak investments LLC in exchange for 10% profit interest. but south peak will hold it for investment purpose.

a) after 4 years from Cludes contribution south peak sells the land for $3000000 the gain would be $3000000 - 1500000 = 1500000. the character is of long term capital gains since ths LLC held ot as investment asset

b) if south peak sells the asset after 5 years six months then also the gain would be sa,e and character would be same since LLC has held the asset fore investments purpose and at the same time its holding period is above one year.

3 0
3 years ago
Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for a 7-year period expiring December 31, 2017. Equal payments und
ExtremeBDS [4]

Answer:

$2,400,000

Explanation:

Always remember that in the case of a sales type lease, the lessor at the inception of the sales type lease would recognize sale of equipment at a price of present value of the lease payments which is $2,800,000 and cost of goods sold will be recorded at cost of equipment which is $2,400,000.

Case 1: If the equipment was an inventory then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr           Sale of Inventory $2,800,000

Recording of inventory out:

Dr Cost of Goods Sold $2,400,000

Cr           Inventory Account $2,400,000

Case 2: If the equipment was fixed asset then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr       Sale of Fixed Asset $2,800,000

Recording of equipment handing over to customer:

Dr Cost of Goods Sold $2,400,000

Cr        Equipment Account $2,400,000

In both of the cases the cost of goods sold will be $2,400,000.

4 0
3 years ago
Consider the following: Lumber Revenues, $120,000; Hardware Revenues, $90,000; Cost of Sales, $130,000; All other costs and expe
ANEK [815]

Answer:

19.05%

Explanation:

Data provided in the question:

Lumber Revenues = $120,000

Hardware Revenues = $90,000

Cost of Sales = $130,000

All other costs and expenses = $35,000

Investment Income = $8,000

Income Tax Expense = $13,000

Net Income = $40,000

Now,

The net profit margin = [( Net income) ÷ (Total revenue ) ] × 100%

or

The net profit margin = [ $40,000 ÷ ( $120,000 + $90,000 ) ] × 100%

or

The net profit margin = [ $40,000 ÷ $210,000 ] × 100%

or

The net profit margin = 0.1905 × 100%

or

The net profit margin = 19.05%

5 0
3 years ago
Other questions:
  • Your friend is a business owner in a planned economy. In a few sentences, explain how central authority impacts his business.
    14·1 answer
  • Which is the correct order of entities who benefit when banks make a profit
    6·2 answers
  • Jones runs a television ad that shows her opponent smith in black and white looking tired toward the end of the ad jones appears
    14·1 answer
  • XYZ Inc. has the following net income before any application of any net operating losses: 2016 $9,000 Net income 2017 $12,000 Ne
    11·1 answer
  • Bill makes $100,000 and must pay 6% income taxes. Bob, on the other hand, makes $40,000 and must pay 2% income taxes. Bill and B
    6·2 answers
  • Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the N
    12·1 answer
  • Each employee or customer who uses a computer in a large business is which kind of user?
    5·1 answer
  • En que quieres trabajar cuando seas grande Xd
    12·1 answer
  • Internal users of accounting information include all of the following except A. investors. B. company officers. C. marketing man
    10·1 answer
  • T or F #4 QUICKKK<br> One purpose of a quota is to limit imports.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!