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ser-zykov [4K]
4 years ago
10

Using CVP analysis to find break even points and target profit volumes Mimi Incorporated has a targeted operating income of $518

,000 for the upcoming year. The selling price of its single product is $40.50 each, while the variable cost per unit is $12.50. Fixed costs total $182,000. Calculate the following:
a. Contribution margin per unit
b. Breakeven point in units
c. Units to be sold to earn the targeted operating income
Business
1 answer:
Papessa [141]4 years ago
7 0

Answer:

a. $28 per unit

b. 6,500 units

c.  25,000 units

Explanation:

a. The computation of the contribution margin per unit is shown below:

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $40.50 - $12.50

= $28 per unit

b. The formula to compute the break even point in units is shown below:

= (Fixed expenses ) ÷ (Contribution margin per unit)  

= ($182,000) ÷ ($28)

= 6,500 units

c. The formula is shown below:

= (Fixed expenses + target operating income) ÷ (Contribution margin per unit)

= ($182,000 + $518,000) ÷ ($28)

= 25,000 units

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Answer:

<u>A Sales Call </u>

Explanation:

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Such a meeting is usually a face to face meeting between the sales representatives and the prospective buyer.

In the given case, a sales team from Quanto is engaged in an in-person face to face meeting with a team from Real Mart to discuss purchase of computer hardware.

This represents a case of a sales call being conducted to eliminate buyer doubts and effect sales.

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4 years ago
What special asset does Heartland Telecom's acquisition of Surety Wireless​ identify? The acquisition identifies the asset goodw
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Answer: 1. Goodwill

2. a. Record no entry in the books

b. Record a loss in the books

Explanation:

1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.

Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).

2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this <u>gain</u> on the books.

b. If the value of the asset has​ decreased, Heartland should record a loss in the books to represent the loss on this account.

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4 years ago
The customer told you that being competitive in their market is a moving target. They asked you to add
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The best approach to help manage the scope for the project where the customer asked for more items to be added to the scope is to <u>switch to an</u><u> Agile approach</u>.

<h3>What is an Agile approach?</h3>

An agile approach to help manage the scope for the project would involve:

  • Breaking up the scope into several phases.
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  • Using continuous incremental improvements.

Thus, the best approach to help manage the scope for the project where the customer asked for more items to be added to the scope is to <u>switch to an</u><u> Agile approach</u>.

Learn more about agile methodology at brainly.com/question/25734045

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3 years ago
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s cur
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Answer:

Trend Analysis helps to interpret the changes in account balances over certain period of time. Trends in percentages is presented in the table below.

* Excel solution is attached for your reference.

Explanation:

For Rotorua Product Ltd, data trends (in percentages) can be computed using the following formula:

                       Trend in % = (Current Year ÷ Base Year) × 100

                          where: Base Year is assumed to be Year 1

                                      Year 1 Year 2  Year 3   Year 4     Year 5

Sales                                 100.0% 107.9%     112.0%   121.0%     127.7%

     

Current Assets    

Cash                                   100.0% 132.5%   112.6%     90.1%      95.4%

Accounts receivable, net   100.0% 102.9%   107.1%     119.7%      136.8%

Inventory                           100.0% 108.3%   104.2%     109.9%     113.6%

Total current assets           100.0%  108.1%    105.6%     111.8%      119.9%

     

Current liabilities                   100.0% 108.5%   103.7%     105.5%      128.0%

Download xlsx
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Answer:

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Strategic planning is therefore, a process focused on the future, not on daily activities, and is usually the main job of the CEO.

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