Answer:
The fixed cost at any level of activity is $48,000 while the variable cost per unit at any level of activity is $1.30
Explanation:
The total cost is a function of the fixed and variable cost. Whilst the fixed cost does not change at a certain range of activities level, the variable cost changes as the level of activities(units produced or sold).
Using the high and low levels of activities given, let the variable cost per unit be v and the fixed cost F
for the high level,
F + 90,000v = 165,000
For the low level
F + 40,000v = 100,00
Solving both equations simultaneously,
50,000v = 65,000
v = $1.30
F + 40,000($1.30) = 100,000
F = 100,000 - 52,000
F = $48,000
The media mix is the combination of media used and the frequency of advertising in each medium.
Answer:
desks = 1,025
Explanation:
440
<u>+585</u>
1,025
Notice:
We should add the cost of the two desk to get the total amount.
The debt or account payable at the moment doesn't reduce the valuation fo the desk.
The depreciation will. But we are not given with any numebr to calculate this, so we should ignore it for this assingment.
The effects of leverage
Leverage, however, will increase the volatility of a company's earnings and cash flow. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period. There are many types of CF, as well as the risk of lending to or owning said company
Answer:
The depreciation expense for the company is $4615.
Explanation:
profit before depreciation and tax = (sales - cost) - interest expense
= ($51,200 - $39,600) - $1,560
= $10040
Addition to retained earnings = $2,320
dividends paid = $935
tax rate = 40 percent.
Addition to retained earnings = [(Profit before depreciation and tax - depreciation expense ) * (1- Tax)] - dividend paid
$2320 = [($10040 - depreciation expense)* (1 - 0.40)] - 935
$3255 = ($10040 - depreciation expense)* 0.60
$5425 = $10040 - depreciation expense
Depreciation expense = 10040 - 5425
= $4615
Therefore, The depreciation expense for the company is $4615.
