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const2013 [10]
3 years ago
6

Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.4

0 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,600 shirts to break-even. The after tax net income last year was $5,220. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $12. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. The selling price that would maintain the same contribution margin ratio as last year is:
Business
1 answer:
Darina [25.2K]3 years ago
5 0

Answer:

$11.23

Explanation:

Calculation for the selling price that would maintain the same contribution margin ratio as last year

Selling price per unit = $8.40

Variable cost per unit = $2.25

First step is to the Contribution margin per unit using this formula

Contribution margin per unit = Selling price per unit-Variable cost per unit

Contribution margin per unit= $8.40-$2.25

Contribution margin per unit = $6.15

Second step is to find the Contribution margin ratio using this formula

Contribution margin ratio= Contribution margin / Selling price per unit

Contribution margin ratio= $6.15/$8.40

Contribution margin ratio= 0.73*100

Contribution margin ratio=73%

Third step is to calculate for the Increase in variable cost per unit For coming year

Variable cost per unit will increase by 1/3

Increase in variable cost per unit = 6.15 x 1/3

Increase in variable cost per unit= $2.05

Variable cost per unit = 6.15+2.05

Variable cost per unit = $8.2

Last step is to find the selling price per unit using this formula

Selling price per unit =Variable cost per unit /Contribution margin ratio

Let plug in the formula

Selling price per unit = $8.2/0.73

Selling price per unit= $11.23

Therefore the selling price that would maintain the same contribution margin ratio as last year is $11.23

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Carrie Tune will receive $31,000 for the next 11 years as a payment for a new song she has written. Use Appendix D for an approx
r-ruslan [8.4K]

Answer:

$184,068.70

Explanation:

Given that

Annual payments = $31,000

Discount rate = 12%

Time period = 11 years

The computation of the present value is shown below:

= Annual payments  × PVIFA factor for 11 years at 12%

= $31,000 × 5.9377

= $184,068.70

Simply we multiplied the annual payments with the PVIFA factor so that the present value could arrive

Refer to the PVIFA table

6 0
3 years ago
Which audience analysis anticipates resistance if something is going to cost money?
Katena32 [7]

The audience analysis that anticipates resistance if something is going to cost money is a situational analysis. This is further explained below.

<h3>What is situational analysis?</h3>

Generally, An organizational situation may be better understood by doing a situational analysis, which is a set of techniques for evaluating both the internal and external variables of a company.

In conclusion, A situational analysis is the kind of audience analysis that determines whether or not there will be opposition to anything if it will cost money.

Read more about situational analysis.

brainly.com/question/23563467

#SPJ1

6 0
2 years ago
Sunland Company took a physical inventory on December 31 and determined that goods costing $190,500 were on hand. Not included i
Sergio [31]

Answer:

$241,500

Explanation:

Calculation for What amount should Sunland report as its December 31 inventory

December 31 inventory per physical count $190,500

Add Goods-in-transit purchased FOB shipping point $29,000

Add Goods-in-transit sold FOB destination $22,000

December 31 Inventory $241,500

($190,500 + $29,000 + $22,000 = $241,500)

Therefore What amount should Sunland report as its December 31 inventory is $241,500

8 0
2 years ago
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common
Vikentia [17]

Answer:

1.$92.4million

2. January 1, 2021

No journal entry

3. December 31, 2021

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

4. December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

5. December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

6. December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

Explanation:

1. Calculation to determine the total compensation cost pertaining to the RSUs

Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted

Total compensation cost=$92.4million

Therefore the total compensation cost pertaining to the RSUs is $92.4million

2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021

January 1, 2021

No journal entry

3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021

December 31, 2021

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

($92.4million-$22 million)

6 0
2 years ago
. January 1, 2002 you bought a coupon bond for $1102. You received a coupon of $50 on December 30 . On January 1, 2003, you sold
Natalka [10]

Answer:

-5.72%

Explanation:

Total rate of return = (Total return/net loss ÷ Purchase Price) × 100 ......... (1)

Loss on sales = Purchase price - Sales price = $1102 - $989 = $113.

Net loss = Coupon received - loss on sales = $50 - $113 = -$63

Substituting the values into equation (1), we have:

Total rate of return = ((-63) ÷ 1,102) × 100 = -5.72%

Therefore, the total rate of return is -5.72%. It is negative because the coupon bond led into net loss.

8 0
2 years ago
Read 2 more answers
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