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sashaice [31]
3 years ago
10

In 2018, X Company sold 6,800 units of its only product for $36.10 each. Unit costs were as follows: Variable manufacturing $14.

50 Fixed manufacturing 2.35 Variable selling 5.11 Fixed selling 2.63 Total 24.59 In 2019, the selling price, variable costs per unit, and total fixed costs are not expected to change. Assuming a tax rate of 39%, how many units must X Company sell in 2019 in order to earn $63,000 after taxes?
Business
1 answer:
Eddi Din [679]3 years ago
7 0

Answer The correct answer is 8.317 units

Explanation:

Firstly, calculate the Total fixed costs= ($2.35+$2.63)*6800= $33.864 Fixed Manufacturing and Selling cost

Secondly, calculate the earnings before taxes 63.000/(1-tax rate) = 63.000(/1-0.39)= 103.278.69

Then, Calculate the Revenue less fixed cost  103.278.69+33.864=137.142,68

Then calculate the Variable margin that is equal to ( Price of sales per unit – Variable manufacturing – Variable selling) = (36.10-14.50-5.11)= 16.49

Finally divide the revenue less fixed cost on the variable margin (137.142,68/16.49) = 8316.72

                                     Units                        Price    Total

Revenue                             8,316.72                    36.10      300,233.54  

Fixed Manufacturing                                                  (15,980.00)

Variable manufacturing    8,316.72                    14.50      (120,592.42)

Fixed Selling                                                                    (17,884.00)

Variable Selling                 8,316.72                      5.11         (42,498.43)

Net Revenue                                                                     103,278.69  

Tax rate                                                                39%        (40,278.69)

Total                                                                            63,000.00  

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Answer:

Net Cash Provided by Operating Activities is $286,000

Explanation:

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                    Partial Statement of Cash flows

            For the year ended December 31, 2022

<em>Cash Flow from Operating Activities</em>

Net Income                                                               $229,500

<em></em>

<em>Adjustment to reconcile net income to</em>

<em>net cash provided by operating activities</em>

Depreciation Expenses                          $40,500

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Decrease in Accounts Receivables       $13,500

(133,500 - 120,000)

Decrease in Inventory                             $6,000

(258,000 - 252,000)

Increase in Prepaid Expenses                -$7,500

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Increase in Accrued Expenses Payable $15,000

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Decrease in Accounts Payable              <u>-$10,500</u>     <u>$57,000</u>

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4 0
3 years ago
1. How are people rational when they make choices?
baherus [9]
Rational choice theory states that individuals rely on rational calculations to achieve outcomes that are in line with their personal objectives. These decisions provide people with the greatest benefit or satisfaction — given the choices available — and are also in their highest self-interest.
3 0
3 years ago
Harley-Davidson motorcycle owners, who pay a price premium for their motorbikes, have formed the Harley Owners Group (HOGs), who
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Answer:

A) Functional and social value

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Seeing the benefit that customers attribute to products is a marketing strategy to optimize sales and establish a brand that customers identify with. In this case, motorcyclists experience functional benefit and social benefit.

The functional benefit concerns the essential characteristics of the product, such as physical characteristics that please the consumer (eg the motorcycle scooter design). The social benefit is associated with the pleasure that the customer gets when purchasing the product. This is an individual benefit for each consumer, however, is an extrinsic advantage attributed to the product. For example, the status that the motorcycle brings to its owner.

5 0
2 years ago
Headland Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $79,200. Headland determi
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Answer:

The Journal Entry is as follows:

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The Journal Entry is as follows:

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7 0
3 years ago
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lianna [129]

Answer:

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Year 3 = $1.5441 million

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= 1.45625 + 1.41392 + 1.3727

= $4.24287 million per year

3 0
3 years ago
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