Answer:
The correct answer is 4,000 shirts.
Explanation:
According to the scenario, computation of the given data are as follows:
Selling price = $35
Labor cost = $5
Cost of material = $10
So, Contribution margin amount = $35 - $5 - $10 = $20
And fixed cost = $60,000 + $20,000 = $80,000
So, we can calculate the breakeven units by using following formula:
Breakeven units = Fixed cost ÷ Contribution margin
= $80,000 ÷ $20
= 4,000 shirts
Answer:
Change in Net worth= $133.62
Explanation:
The two lease options require that the leasee ( the tenant) commit himself to pay a series of equal amount of rent installment at the different time period in the future.
These series of equal periodic cash flows occurring in the future are called annuities.
To have a meaningful comparison, the two annuities should be compared based on their present values. So we compute the present value of the two using the formula below:
Present Value (PV) =( A × (1- (1+r)^(-n))/r
Option 1:Current lease
PV = 500 × 1-(1+0.05)^(12)
= 500 × 8.863251636
= $4,431.62
Option 2: New Offer
This will be done in two steps:
PV of lease in year 3
PV =700 × (1-(1+0.05)^(-9))
= 700 × 7.107821676
=4,975.47
PV of lease in year 0
PV = FV × (1+r)^(-3)
=4,975.47 × 0.8638
=$4,298.00
My net worth would change by the amount of the difference between the two PV of the two annuities:
Difference in PV = $4,431.62-$4,298.00
Change in Net worth= $133.62
Answer:
the labor efficiency variance for the month is $23,256 Favorable.
Explanation:
Labor efficiency variance = (Aq × SP) - (Sq × Sp)
= (7,600 × $13.60) - ((950 × 9.8) × $13.60)
= (7,600 × $13.60) - (9.310 × $13.60)
= $23,256 Favorable
This is true. ..............
