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Furkat [3]
3 years ago
12

Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p

eriod: Bulb Division Seed Division Sales $ 234,000 $ 156,000 Variable expenses $ 60,840 $ 32,760 Traceable fixed expenses $ 135,730 $ 76,440 Common fixed expense $ 25,980 $ 17,320 The common fixed expenses have been allocated to the divisions on the basis of sales. Required: a. What is the Bulb Division’s break-even in sales dollars? b. What is the Seed Division’s break-even in sales dollars? c. What is the company’s overall break-even in sales dollars?
Business
1 answer:
amm18123 years ago
5 0

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed  = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

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Answer:

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Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the futur
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Answer:

$4,000

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P- percent

r-rate

t-time

P: 10000

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T:5 years

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That's how I do it. I hope it helps!

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Two athletes of equal ability are competing for a prize of $12,000. Each is deciding whether to take a dangerous performance-enh
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3 years ago
Dixie Mart plans to pay dividends of $1.36, $1.15, $1.35, and $0.40 at the end of the next four years, respectively. After that,
Vera_Pavlovna [14]

Answer:

The correct answer is C. $46.50.

Explanation:

The current value of one share of stock is the present value of all expected future cash flows. The present value (PV) of cash flows in each year is calculated as follows.

PV = Future value / (1 + Rate of return)^Number of years

The future value is the dividend received on the share in a particular year while the rate of return is 11.4% (i.e. 0.114).

Applying the above formula,

PV_{1}  = 1.36 / (1 + 0.114)^{1} = 1.221\\

PV_{2} = 1.15 / (1 + 0.114)^{2} = 0.927

PV_{3} = 1.35 / (1 + 0.114)^{3} = 0.977

PV_{4} = 0.40 / (1 +0.114)^{4} = 0.260

PV_{6} = 82.40 / (1 + 0.114)^{6} = 43.114

Current value of share = $1.221 + $0.927 + $0.977 + $0.260 + $43.114

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Hence, the correct option is C. $46.50.

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