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alukav5142 [94]
2 years ago
14

2. Pure Water is considering buying new production equipment. The new equipment will increase fixed costs by $200,000 per year a

nd will decrease variable cost of the faucet and pitcher units by $5 and $10, respectively. Assuming the same sales mix, how many of each type of filter does Pure Water need to sell to breakeven
Business
1 answer:
BARSIC [14]2 years ago
4 0

Answer and Explanation:

The computation is shown below:

But before that we need to do the following calculations which are shown below:

The Contribution per unit of faucet is

= $75 - $15

= $60

And, the Contribution per unit of pitcher filter is

= $100 - $30

= $70

Now Contribution per unit in present sales mix is

= [($60 × 2) + ($70 × 3)] ÷ 5

= ($120 + $210) ÷ 5

= $66 per unit

And

The Fixed cost is

= $1,000,000 + $200,000

= $1,200,000

Now  

Break even units is

= $1,200,000 ÷ $66 per unit

= 18,181.81 units

For faucet, it is

= (18,181.81 × 2) ÷ 5

=  7,272.72 units

For pitcher filter, it is

= (18,181.81 × 3) ÷ 5

= 10,909.086 units

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Answer:

$8,767.50

Explanation:

Calculation for what Legion should report as bond interest expense for the six months ended

Using this formula

Bond interest expense= Carrying Value of Bond x Effective interest rate

Let plug in the formula

Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months

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As a new investment adviser (IA) firm, your company wants to obtain more clients. In an attempt to do so, one of the employees s
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Answer:

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In this case the employee suggested that if their clients didn't earn a minimum 12% profit, then they would refund any fees collected. But the IA firm is not allowed to guarantee the 12% value increase or profit.

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You are expected to do a presentation of your business plan to a group of potential investors. Explain how you would respond to
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In what areas do federal agencies regulate to ensure safety and the general
NeTakaya

Answer:

d. All of the above

Explanation:

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Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
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Answer:

Cor's share of Cor-Eng's 20X1 net income is $60,000

Explanation:

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Ratio                                         60%        40%         100%

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Less: Drawing                      -3,000        -9,000     -12,000

Year End balance                 72,000      61,000    133,000

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2 years ago
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