Answer:
See below
Explanation:
Basic models Deluxe models
Sales price $44 $54
Variable costs $25 $25
Contribution margin $9 $29
×
Sales mix 1 3
Total contribution margin $9 $87
Contribution margin per unit = $9 + $87 = $96
Weighted contribution margin= Total contribution margin / Units
= $96 / $4
= $24
Break even point = Total fixed costs / Weighted contribution margin
Break even point = $1,441 / $24
Break even point = 60 units
•Basic units = 60 × 63.33% = 38 units of basic
•Deluxe units = 60 × 43.33% = 26 units of Deluxe units
<em>Answer</em>:
<u>$52,000</u>
Explanation:
Remember, the FIFO inventory costing method records the inventory value based on the cost of the earliest (first) purchased or in hand balance.
The effective tax rate would usually be applied after the sales, however using FIFO we assume the first value of the inventory prior to the tax deduction.
= 4000 x $13
= $52,000
Therefore, the gross profit for the period is $52,000.
Answer:
d. Po = $1.80/(0.11 -0.025); The value of D1, is incorrect as $1.80 equals Do.
Explanation:
Calculation to correctly identifies which one of these is an error when computing the current value of this firm's stock
P0 = $1.80/(0.11 - 0.025)
P0 = $1.80/0.085
P0=$9.76
Therefore Based on the information given Po = $1.80/(0.11 -0.025); because The value of D1, is INCORRECT as $1.80 equals Do.
