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jasenka [17]
2 years ago
7

Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price.

As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Business
1 answer:
NeTakaya2 years ago
6 0

Answer:

Break-even point in units= 2,600

Explanation:

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

Break-even point in units= fixed costs/ contribution margin per unit

Fixed costs= $65,000

Contribution margin per unit= 50*0.5= $25

Break-even point in units= 65,000/25

Break-even point in units= 2,600

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$20,000 income

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<em>Computation</em>

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Less : Costs of Correction =                                   ($12,000.00)

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3 years ago
One of the necessary steps in the financial planning process is a forecast of financial statements under each alternative versio
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Analyzing Adjusting Journal Entries, Prepaid Asset and Deferred Revenue Voss Inc., an accounting firm, adjusts and closes its ac
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Answer:

a. Case A-the $1,125 was debited to Supplies Expense. What is the balance of Supplies at year-end?

The previous balance was Supplies $225

If the following was made:

Dr Supplies expense 1,125

    Cr Supplies 1,125

Then the ending balance of Supplies would be = -$900

b. Case B the $1,125 was debited to supplies. What is the balance of Supplies at year-end?

The previous balance was Supplies $225

If the following was made:

Dr Supplies 1,125

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Dr Supplies expense 990

    Cr Supplies 990

Ending balance of supplies inventory = $360

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