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TEA [102]
3 years ago
6

A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be

set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business with the following assumptions of fixed costs?
A) Fixed costs are estimated at $120,000 vs. fixed costs are estimated at $100,000.
B) What do the above results suggest with regard to the operating leverage vs. business risk?
Business
1 answer:
dybincka [34]3 years ago
4 0

<u>Solution:</u>

The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.

Price = 2.5 * 2.50 = $6.25

Variable cost = $2.50

Fixed cost = $220,000

Break-Even Volume = Fixed cost / (Price - Variable cost)

                                  = $220.000 / (6.25 - 2.50)

Break-Even Volume = 58,667 units

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Dabros Inc. is purchasing a new vapor depositor in order to make silicon chips. It will cost to buy the machine and $10,000 to h
____ [38]

Answer:

The answer is $1,402,000

Explanation:

Cost of an asset is the total cost of acquiring and asset plus the cost incurred in bringing the asset to a working condition e.g cost of transporting the asset to factory, cost of installation etc.

Cost of the machine is:

Cost of acquisition $4,000,000

Cost of installation. $10,000

Building a clean room. $3,000,000

Total cost is. $7,010,000

No salvage value

Useful life is 5 years

Cost of depreciation using the straight-line method is

(cost of the asset - salvage value) ÷ number of useful life

$7,010,000 ÷ 5

= $1,402,000

6 0
3 years ago
Decision alternatives:_______
LenaWriter [7]

Answer:

The correct answer is letter "A": should be identified before decision criteria are established.

Explanation:

Decision criteria represent the set of steps individuals take while making a decision. Before taking a decision and selecting decision criteria, the decision alternatives must be outlined. Thanks to these alternatives a problematic situation will be resolved.

3 0
2 years ago
Assets are 300,000 and equity is 100,000, assets increase 80,000 liabilities increase 50,000. what is equity at year end?
mojhsa [17]
<span>Assets - equity = liabilities
  So liability before the increase is:
 300, 000 - 100, 000 = 200, 000
 And if assets increases by 80, 000. Hence new assets = 380, 000. Liabilities increases by 50, 000; hence new liability = 250, 000.
 New Equity = New Assets - New liability.
 New Equity = 380, 000 - 250, 000 = 130, 000.</span>
6 0
3 years ago
Besides their own team accounts, sales managers at Universal Containers need to have READ access to all accounts of the same seg
IgorC [24]

<u>Available Options Are:</u>

A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles.

B. Change the role hierarchy and put all of the sales managers in the US and Canada in the same role.

C. Create criteria-based sharing rules to grant access to account records that have the same segment to all sales manager roles.

D. Create a public group and include all accounts of the same segment and grant access through a permission set.

Answer:

Option A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles

Explanation:

This owner based sharing will allow the sales manager to access information but he will not be able to alter information which gives a right to access information only. This sharing of information will resolve the sales manager concern and will also him and other sales manager to use this information to make informed decisions. Hence Option A is correct.

Putting in the same role would manipulate the data because the data entered by each sales manager will not be distinguished easily and thus the system will not produce meaningful results. Hence Option B is also incorrect.

Option C is also incorrect because allowing access on meeting certain criteria would result in restriction of data. Thus it is not the solution.

Option D allowing access to all the data would not be necessary as some of the data might require protection and also that it might be meaningless to have private accounts. Thus the option D is incorrect.

5 0
3 years ago
Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage.
enyata [817]

Answer:

c. An online retailer delivers organic groceries overnight.

Explanation:

As Different companies in different industries follow any one of the five general strategies to gain competitive advantage.

so The online retailer distributes organic groceries overnight, using a low-cost provider strategy. This is due to the intense competition in online retailing.

so correct option is c. An online retailer delivers organic groceries overnight.

6 0
3 years ago
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