1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ray Of Light [21]
3 years ago
12

Tommy’s Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stain

s from ceramic tiles. The company’s contribution margin is 25% and its current break-even point is $487,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $11,000. Required: 1. Determine the company’s current fixed costs. 2. Determine the company’s new break-even point in sales. 3. After the purchase of the equipment, how much revenue does the company need to generate a profit of $135,000?
Business
1 answer:
sergejj [24]3 years ago
5 0

Answer:

1. $132,800

2. $531,200

3. $1,071,200

Explanation:

The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.

Break-even point = Fixed cost / Contribution margin ratio

$487,200 = Fixed cost / 25%

Fixed Cost = $487,200 x 25% = $121,800

1.

Revised Fixed cost = $121,800 + $11,000 = $132,800

2.

New Break-even point = $132,800 / 25% = $531,200

3.

Desired profit = $135,000

Desired revenue = ( Desired profit + Fixed cost ) /Contribution margin ratio = ( $135,000 + 132,800 ) / 25% = 267,800 / 25% = $1,071,200

You might be interested in
Palin Inc., an electronics manufacturer, is headquartered in Texas. The firm shifted its operations from Texas to China due to l
Fittoniya [83]

Answer: Offshoring.

Explanation:

Palin Inc., is involved in Offshoring by taking their production operations from the U.S of America to China where they can get cheap and quality labor. Offshoring occurs when a production company changes their industry site to a new location, which posseses quality and cheaper labor than their original location.

3 0
3 years ago
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mo
HACTEHA [7]

Answer:

Variable cost = $6,550

Explanation:

Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.

The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.

In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.

Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.

variable cost = $5,500 + $800 + $250

Variable cost = $6,550

3 0
3 years ago
"during times of economic trouble, which are immigrants often accused of?" causing inflation and unemployment to increase planni
Vikki [24]
<span>During times of economic trouble, which are immigrants often accused of?
Taking jobs away from native-born residents. During economic trouble, immigrant are often accused on taking jobs away from native-born residents because they are typically cheaper to hirer for the same job. Immigrants often work harder as well by nature because they need to prove themselves (as they think) to keep their jobs and create a profitable life in America. This makes it hard for native-born residents to keep their jobs since the immigrants will do the same amount of work for less wage. </span>
4 0
3 years ago
The following is the sales budget for Coore, Inc., for the first quarter of 2019. January February March Sales budget $168,000 $
nekit [7.7K]

Answer:

a. Sales for November = $192,666.67

b. Sales for December = $390,500

c. Cash collections for:

January = $216,200

February = $213,075

March = $191,750

Explanation:

First consider the following information:

Credit sales are collected as follows:

65% in the month of the sale

20% in the month after the sale

15% in the second month after the sale

a. To calculate sales for November, note that the account receivable balance at the end of the previous quarter is from the sales of the previous two months (November and December), of these sales, we are told that $78,100 is from December sales, therefore to calculate the amount from November sales = 107,000 - 78,100 = $28,900.

Next, we are told that the 15% of sales are collected is the second month following sales, and January is the second month following the November sales from the previous quarter, therefore, the $28,900 from the previous November sales is 15% of the original sales, and the original sale is calculated thus:

Let sale for November be N

15% of N = 28,900

15/100 × N = 28,900

0.15N = 28,900

∴ N = 28,900 ÷ 0.15 = $192,666.67 ( to 2 decimal places)

b. The $78,100 which was uncollected December sales is 20% of the original sales, since December is the one month away from the beginning of the new quarter, and 20% of sales is collected in the month following sales. Therefore December sales is calculated as follows:

Let December sales be D

20% of D = 78,100

0.20 × D = 78,100

∴ D = 78,100 ÷ 0.20 = $390,500

c.

i. Cash collections in January

from previous quarter = $107,000

from January's sales = 65% of January sales

= 0.65 × 168,000 = 109,200

Total cash collection in January = $216,200

ii. cash collections in February:

From December sales = 15% of December sales ( Fabruary is 2 months following December sales)

= 0.15 × 390,500 = $58,575

from January's sales = 20% of January sales (February is the month following January's sales)

= 0.20 × 168,000 = $33,600

from February's sale = 65% of February's sales

= 0.65 × 186,000 = $120,900

Total cash collections in February = 58,575 + 33,600 + 120,900 = $213,075

iii. Cash collections in March

From January's sale = 15% of January's sales

= 0.15 × 168,000 = $25,200

from February's sale = 20% of February's sale

= 0.20 × 186,000 = $37,200

From March's sale = 65% of March's sale

= 0.65 × 199,000 = $129,350

∴ Total cash collections for March = 25,200 + 37,200 + 129,350 = $191,750

7 0
2 years ago
All of the following questions are open-ended problems. You must compute an answer for every problem. For percentage answers, ca
DerKrebs [107]

Solution :

13. Net income = total assets x ROA

                   = $ 1,000,000 x 12%

                  = $ 120,000

Net Income for company is $120,000.

Net Profit margin = 4.25%

Total sales = net income / net profit margin

                  = $ 120,000 / 4.25%

                  = $ 2,823,529

Total sales for company is $ 2,823,529

14. Debt ratio = 72%

   So weight of debt = 72%

   Weight of equity = 1 - 72%

                                = 28%

   Debt equity ratio  $=\frac{72 \%}{28 \%}$  

                                 =  2.57

   Debt equity ratio is 2.57

15. Debt ratio = 42.50%

So, weight of debt = 42.50%

Weight of equity = 1 - 42.50%

                             = 57.50%

Weight of equity is 57.50%.

Return on equity = 15%.

Return on assets = 57.50% × 15%

                            = 8.625%

Return on assets is 8.625%.

16.

Debt Equity ratio = 1.45

Weight of debt = 59.18%

Weight of equity = 40.82%

Return on assets = 16%

Return on equity = 16% / 40.82%

                              = 39.20%

Return on equity is 39.20%.

17.

Total Assets turnover = Sales / Total Assets

                                     = (Net Income / Total Assets) / (Net Income / Sales)

                                    = ROA / Net Profit margin

                                      = 7.50% / 15%

                                      = 0.50

Total Assets turnover is 0.50.

8 0
3 years ago
Other questions:
  • Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodi
    12·1 answer
  • Michael has a credit limit and a balance of $3,000 on his Visa card. His car broke down, he charged the $500 repairs to his Visa
    15·1 answer
  • Brian makes ​$27,000 per year. how much can brian expect to contribute to fica taxes? question 7 options: $2,065 $1,674 $391 $2,
    15·1 answer
  • Suppose Apple builds a plant in Taiwan and agrees to take 30% of the plant's output as
    15·1 answer
  • The RBS Company currently buys their supplies from Supplier X which presently has a supplier score of 85.0. The RBS Company is n
    11·1 answer
  • A decrease in the long-run average total cost as output increases is due to rev: 06_26_2018 Multiple Choice the law of diminishi
    14·1 answer
  • Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16,
    14·1 answer
  • Dividends Per Share Windborn Company has 25,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par co
    14·1 answer
  • n Office Manager uses a Periodic Review Inventory System: they check the inventory in their Office Supply Closet once every 10 d
    12·1 answer
  • Classify each job as working more with data, people, or things.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!