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Bess [88]
3 years ago
14

Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as fo

llows: Equipment cost: $288,000/year Equipment salvage value at EOY5= $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?
Business
1 answer:
dusya [7]3 years ago
6 0

Answer:

It need  sales figure of 22,125 units per year to break even considering their currnent contribution marign and fixed cost.

Explanation:

fixed cost per year:

equipment lease cost: 288,000

other overhead cost  <u>     48,300   </u>

total fixed cost              336,300

contribution per unit:

sales revenue - variable cost

39.75 - 14.55 = 15.20

each units generates $15.20 dollar we need to save up for  336,300 dollars

break even point:

336,300 / 15.20 = 22,125 units

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Serial Problem Business Solutions LO P4 Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:
stich3 [128]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.

The company sells 3 deks per 2 chairs.

Sales proportion:

Desks= 3/5= 0.6

Chairs= 2/5= 0.4

1) Selling price per composite unit= sales proportion*selling price

Selling price per composite unit= 0.6*1,310 + 0.4*560

Selling price per composite unit=  $1,010

2) Variable cost per composite unit= sales proportion*unitary variable cost

Variable cost per composite unit= 0.6*810 + 0.4*310

Variable cost per composite unit= 610

3) Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 180,000/ (1,010 - 610)

Break-even point (units)= 450 units

4) Number of units for each product:

Desks= 0.6*450= 270

Chairs= 0.4*450= 180

5 0
3 years ago
rguments for adopting a policy rule include A. discretion avoids the straitjacket that would lock in the wrong policy if the mod
erik [133]

Answer:

C. discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.

Explanation:

Arguments for adopting a policy rule include;

- discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.

- discretion enables policymakers to change policy settings when an economy undergoes structural changes.

- discretion avoids the straightjacket that would lock in the wrong policy if the model that was used to derive the policy rule proved to be incorrect.

- policy rules can be too rigid because they cannot foresee every contingency.

- policy rules do not easily incorporate the use of judgment.

3 0
3 years ago
True or false: many small businesses fail every year
tatuchka [14]

Answer:

True

Explanation:

20 percent of small businesses fail within the first year

7 0
3 years ago
Read 2 more answers
Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $29,000. The accumulated depreciation a
Annette [7]

Answer:

$7,900 = selling price

Explanation:

Giving the following information:

Original cost= $29,000

Accumulated depreciation= $24,000

Gain= $2,900

<u>First, we will determine the book value:</u>

<u />

Book value= original cost - accumulated depreciation

Book value= 29,000 - 24,000 = $5,000

<u>Now, the selling price:</u>

Gain/loss= selling price - book value

2,900= selling price - 5,000

$7,900 = selling price

7 0
2 years ago
What budgeted amounts appear on the flexible budget report?
kodGreya [7K]

Answer:

The correct answer is C

Explanation:

Flexible budget report is the report of  management which compares the actual revenue or profit with the costs of the period or year along with the budgeted revenues or profits and the costs is grounded on the actual sales volume.

The amount appears on the report of the flexible budget is the budgeted amounts for the actual level of the activity achieved.

5 0
3 years ago
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