All categories

2 years ago

Tayler Company reported the following data.

1 answer:

3 0

Variable cost per unit is $23 , if the Tayler company has price per unit is $33, fixed cost is $5000 and Break even number of units= 500 units.

Explanation:

The given is,

Price per unit = $33

Fixed cos =$ 5000

Break even number of units = 500 units

Step:1

Total price = Price per unit × Break even number of units

= 33 × 500

= 16500

Total price = $16500

Step: 2

Total price = Fixed cost + Variable cost

16500 = 5000 + Variable cost

Variable cost = 16500 - 5000

= 11500

Variable cost = $11500

Step: 3

Variable cost per unit = $\frac{Variable cost}{Number of units}$

= $\frac{11500}{500}$

= 23

Variable cost per unit = $23

Result:

Variable cost per unit is $23.

You might be interested in

When both parties to a contract are mistaken as to the same material fact either paarty can rescind the contract?

crimeas [40]

I took this question already, so if it was

Often, when both parties to a contract are mistaken as to the same material fact, either party can rescind the contract.

It would be "True"

6 0

2 years ago

Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o

Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction Debit ($) Credit ($)

Asset(new) 11,000

Accumulated depreciation(old) 9,000

Asset (old) 28,000

Cash 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction Debit ($) Credit ($)

Asset(new) 16,000

Accumulated depreciation (old) 10,000

Loss 2500

Assets (old) 28,000

7 0

2 years ago

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a

Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Fixed Manufacturing Costs $ 41,000

Gross Margin $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs $ 38,000

Variable Marketing Costs $ 11,500

Net Profit $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Variable Marketing & Administrative Costs $ 11,500

Contribution Margin $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs $ 41,000

Fixed Marketing Coss $ 38,000

Net Profit $ 65,500

3 0

2 years ago

How is cost of attendance (COA) determined at an institute of higher education?

Ivahew [28]

Answer:

Option C, It is an estimate of tuition fees, room and board, books, supplies and other expenses.

Explanation:

Cost of attendance attendance is the total cos incurred on an individual during an entire academic year by the institute. An institute take into account cost incurred on the following for determining COA-

a) tuition and fees

b) books and supplies

c) College infrastructure cost inclusive of room and board

d) transportation

e) scholarship etc.

Hence, option C is correct

8 0

2 years ago

Sahia company bought a building for 90,000 cash and the land on which it was located for 1,10,000 cash. The company paid a trans

Alexxandr [17]

Answer:

Sahia Company

1. Net book value of the property at the end of year 2 = $217,800.

2. Journal entry to record the purchase:

Debit Property (land and building) $241,000

Credit Cash Account $241,000

To record the acquisition of the property.

3. Straight-line depreciation (on building only) = $11,600.

Explanation:

a) Data and Calculations:

Bought building for cash = $90,000

Bought land for cash = 110,000

Transfer cost = 10,000

Renovation on building = 31,000

Book value of property = $241,000

Depreciation:

Building cost = $90,000

Transfer cost 4,500 ($10,000*90,000/200,000)

Renovation 31,000

Total cost = $125,500

Residual value 9,000

Depreciable value = $116,000

Depreciation per annum = $11,600 ($116,000/10)

a) Land is not subject to depreciation and its value is $115,500 or $110,000 + 5,500 ($10,000*110,000/200,000).

b) The net book value of the property at the end of year 2 is

Building $125,500 - 23,200 = $102,300

Land = 115,500

Net book value of property = $217,800

6 0

3 years ago