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erik [133]
2 years ago
7

The following information is available for Kinsner Corporation: Total fixed costs $313,500 Variable costs per unit $99 Selling p

rice per unit $154 If management has a targeted net income of $46,200, then the number of units that must be sold is ________. Select one: A. 6,540 units B. 2,036 units C. 2,336 units D. 5,700 units
Business
1 answer:
Zanzabum2 years ago
7 0

Answer:

The number of units that must be sold is A. 6,540 units

Explanation:

The number of units must be sold to meet the target profit figure are calculated by using following formula:

The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.

Contribution margin per unit = Sales price per unit – Variable cost per unit = $154 - $99 = $55

The number of units must be sold = ($313,500 + $46,200)/$55 = 6,540 units

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The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:
sleet_krkn [62]

Answer:

a. Revenue recognition principle

Explanation:

The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting

It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

4 0
3 years ago
An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the emp
yawa3891 [41]

Answer:

$8,000, and she has to complete 60 days

Explanation:

Whenever money has to be taken out of the first plan, then it is the requirement of IRA to complete the rollover within 60 days, also the amount to be withheld is 20% this is in the case where the amount is directly paid o the concerned participant. Then the person concerned for such payment has to keep 20%

Here in the instance Total amount = $10,000

20% of such = $2,000

Thus, amount received from the administrator = 80% = $10,000 \times 80% = $8,000

3 0
3 years ago
Nichols Corporation's value of operations is equal to $600 million after a recapitalization (the firm had no debt before the rec
Daniel [21]

Answer:

The answer is $750 millions

Explanation:

After recapitalization, the Weight of Debts of Nichols Corporation is 25%. Hence, its Weight of Equity Capital is: 100% - 25% = 75%.

The formula of Value of Operations as follows:

Value of Operations = Weight of Debts x Value of Debts + Weight of Equity Capital x Value of Equity Capital

Because Nichols Corporation's value of operations is equal to $600 million after recapitalization, we have the following equation with S as the value of equity after the recap:

600 = 25% x 150 + 75% x S

=> S = (600 - 25% x 150) / 75% = 750

8 0
3 years ago
Bell expects to produce 1 comma 800 units in January and 2 comma 155 units in February. The company budgets 3 pounds per unit of
Debora [2.8K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Production:

January= 1,800 units

February= 2,155 units

The company budgets 3 pounds per unit of direct materials at a cost of $ 10 per pound.

Beginning inventory= 4,950 pounds.

Desired ending inventory= 20​% of the next​ month's direct materials needed for production.

Desired ending balance for February is 4,860 pounds.

To calculate purchases, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

<u>January (in pounds):</u>

Production= 1,800*3= 5,400

Desired ending inventory= (2,155*3)*0.2= 1,293

Beginning inventory= (4,950)

Total= 1,743

Total cost= 1,743*10= $17,430

<u>February (in pounds):</u>

Production= 2,155*3= 6,465

Desired ending inventory= 4,860

Beginning inventory= (1,293)

Total= 10,032

Total cost= 10,032*10= $100,320

3 0
3 years ago
Frank Corporation manufactures a single product that has a selling price of $25.00 per unit. Fixed expenses total $64,000 per ye
gavmur [86]

Answer:

Break-even point in units= 10,375

Explanation:

Giving the following information:

Selling price= $25

Fixed cost= $64,000

Break-even point in units= 8,000

<u>First, we need to determine the unitary contribution margin:</u>

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

8,000 = 64,000 / contribution margin per unit

contribution margin per unit8,000= 64,000

contribution margin per unit= 64,000 / 8,000

contribution margin per unit= $8

<u>Now, the number of units to be sold to make a profit of $19,000:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (64,000 + 19,000) / 8

Break-even point in units= 10,375

8 0
2 years ago
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