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Leya [2.2K]
3 years ago
10

EB12.

Business
1 answer:
mina [271]3 years ago
3 0

Answer:

The question is incomplete. The complete question is given below:

              Selling Price per unit Variable  cost per unit

Product  

Trunk Switch             $60.00               $28.00

Gas door             $75.00                $33.00

Glove Box            $40.00              $22.00

Answer Trunk 240 units, Gas 240 units and Box 60 units

Explanation:

The break-even point is the activity level where the total revenue of a business  exactly equals its cost. At the break-even point, <em>the total profit made will be zero</em>. This analysis enables a firm to determine ahead the number of units to must be produced, customers that must served in order to cover its fixed costs.

Calculation

A break-even point can be calculated as follows:

For single-product scenario:  

Break-even point (in units)= Total general fixed cost for the period/                (selling price-variable cost )

Multiple-products scenario= Total general fixed cost for the period/Average contribution per unit

Total general fixed costs are period costs which remain unchanged within a given activity level and cannot be traced to be incurred for a particular product.

                                       Trunk           Gas              Box  

                                          $                 $                   $

Selling price                      60              75                   40

Variable cost                    (28)             (33)               (22)

Contribution per unit        32                42                  18

Cont. from a mix (sp×unit) 128              168                   18

Average cont. per mix = (128+168+18)/(4+4+1)= $34.89

Break-even point (in units)=  $18,840/$34.89

                                       = 540 units

Total units to be sold to break even is 540 units. This will be distributed across the three products using the sales mix as follows:

Trunk = 4/9× 540 units= 240 units

Gas = 4/9 × 540 = 240 units

Box = 1/9 *540 = 60 units

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6 0
3 years ago
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If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
eduard

Answer:

B) adaptive

Explanation:

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3 years ago
Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% a
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Answer:

D) CM per unit: Increases

CM ratio: No change

BE in units: Decreases

Explanation:

Let us suppose that

In the first case

The selling price per unit is $100

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So, the contribution margin per unit

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= $50 ÷ $100

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= $100,000 ÷ $50

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So,

The selling price per unit is $100 × 1.10 = $110

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8 0
3 years ago
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Answer:

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Par Value (at $5)  = B

Additional Paid in capital in excess of Par = C

Dividend  = D

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                                    shares

Add: Issued Apr 1         21,000         $105,000   $294000

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June 30 Balance         111,500      $557,500   $294,000   $111,500

                                    shares                                     [111,500 shares x $1]

Add: Dec 1 Issued       2,500 shares $12,500      $32,500

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Journal Entries based on above

Date         Accounts Titles          Debit            Credit

15-Jun     Dividends                 $111,500

                    Dividends payable                     $111,500

10-Jun      Cash                         $111,500

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15-Dec      Dividends                   $490,200

                     Dividends payable                   $490,200

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4 years ago
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