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WARRIOR [948]
3 years ago
5

Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs

of $27,600,000, a unit variable cost of $805, and a unit selling price of $1,150. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize operating income of $5,175,000. units
Business
1 answer:
Anna11 [10]3 years ago
3 0

Answer:

a. 80,000 units

b. 95,000 units

Explanation:

The computation is shown below:

a.The anticipated break-even sales (units) is

As we know that

Break even point in units   = Total fixed cost ÷ Contribution margin per unit

= $27,600,000 ÷  $345    

= 80,000 units

Where,

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

= $1,150 - $805    

= $345

b. The units for realize operating income is

Unit sales for target profit   = (Fixed expense + Target profit) ÷ Contribution margin per unit

= ($27,600,000 + $5,175,000) ÷ $345    

= $32,775,000 ÷ $345    

= 95,000 units

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You just sold 500 shares of Wesley, Inc. stock at a price of $30.92 a share. Last year, you paid $32.04 a share to buy this stoc
Vitek1552 [10]

Answer:

-$560

Explanation:

The computation of capital gain on this investment is shown below:-

Capital gain = (Stock price - Paid shares) × Sold shares

where,

The Stock price is $30.92

Paid shares is $32.04

And, the sold shares is 500 shares

Now placing these values to the above formula

So, the capital gain on this investment is

= ($30.92 - $32.04) × 500

= -$1.12 × 500

= -$560

5 0
3 years ago
Ian has five years of managerial experience with a shopping center. However, he quit his job to attend to his ailing mother. He
vovikov84 [41]
Ian is a uniquely good position here: the truth happens to be one of the best explanations he could possibly give. The fact that he quit his job to look after his sick mother, assuming that his former employer has positive things to say about him, is a solid reflection of his character and a sign that he was out of the job market not due to a lack of options, but a need to take care of a sick family member.
Ian should tell the truth, and explain the decision thoroughly to demonstrate the kind of person he is to the prospective employer, and what his priorities are. 
3 0
3 years ago
"Your customer, age 68, who has an IRA account at your firm valued at $500,000, passes away. The customer leaves the account to
vredina [299]

Answer:

My best advice for the spouse would be to designate herself as the new account owner, and since she is 62, she can start taking regular distributions from it. Any distributions that she takes will be taxed as ordinary income (the same rule would have applied to the late husband).

Explanation:

If she had her own IRA account (which is doubtful since she doesn't work), she could also roll over her late spouse's balance into her own account.

The wife's third option would be to treat herself as a beneficiary, not the owner or spouse, but that would only complicate things and result in higher costs.

5 0
2 years ago
How does the Ricardian model differ from the H-O theory in explaining international trade patterns among nations.
svetlana [45]

Answer:For example, the Ricardian model of trade, which incorporates differences in technologies between countries, concludes that everyone benefits from trade, whereas the Heckscher-Ohlin model, which incorporates endowment differences, concludes that there will be winners and losers from trade.

5 0
3 years ago
If Ed=2 and price decreases by 1%, by what percentage and in what direction will quantity demanded change?
Arte-miy333 [17]

<u>Given:</u>

Elasticity of Demand = 2

Decrease in price = 1%

<u>To find:</u>

Change in quantity demanded

<u>Solution:</u>

The percentage change in quantity demanded is the mathematical product of the percentage change in price and elasticity of demand. This can be mathematically represented as,

\% \text{ change in quantity demanded }=\% \text{ change in price }\times\text{Elasticity of demand }\\\\ \Rightarrow \% \text{ change in quantity demanded }=1\times2\rightarrow 2\%

Since, there is a decrease in price, the demand for the product will increase. Therefore, we can conclude that there will be 2% increase in quantity demanded

3 0
3 years ago
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