Help with question no.19?

Boston’s Dairy has just opened its main yogurt factory in upstate Massachusetts. This main factory can produce 3,500 boxes of yo

REY [17]

Answer:

7,733 units

Explanation:

Breakeven point is one where revenue equals the cost.

In the main Factory:

Fixed cost = $40,000

Variable cost = $19,250 [($4.5 + $1.0) * 3,500 boxes]

Total cost = $59,250 [$40,000 + $19,250]

Revenue = $52,500 [3,500 * $15]

Net profit or loss : $52,500 - $59,250 = - 6,750 Loss

In the new Factory:

The break even point will be achieved when the loss of $6,750 in the main factory is covered by the new factory.

Fixed cost : $16,000

Variable cost : $6.0 + $1.0 = $7

Selling price = $15

16,000 + 6,750 + 7x = 15x

solving for x we get:

x = 2,844.

In the new factory 2,844 units needs to be produced in excess to achieve the breakeven point.

Total units required to produce 3,500 + 2,844 = 6,344.

If the company adds bonus of $0.80 for its sales force on each box sold above the breakeven then the cost will be increased.

Contribution Margin : 15 - [ 6 + 1 + 0.80 ] = $7.20

Box required to sell to produce net operating income of $10,000

10,000 / 7.20 = 1,389 units

Total units 7,733 [6,344 + 1,389]

8 0

4 years ago

The following information is available for Windsor Inc. for the year ended December 31, 2017:_______.

Lapatulllka [165]

Answer:

Requirement

Prepare Income statement

Calculate the per share of common stock

Windsor Inc.

Income statement for the year ended December 31, 2017

Sales $3,775,000

Less: Cost of goods sold $1,648,000

Gross profit $2,127,000

Operating expenses

Selling expenses $876,000

Administrative expenses $507000

Total operative expenses $1,383,000

Operative income $744,000

Other revenues and (expenses):

Rent revenue $98000

Gain on sale of equipment $31000

Interest expenses ($57,000) $72,000

Income before income taxes $816,000

Income tax applicable to continuing $297,000

operations

income from continuing operations $519,000

Discontinued operations:

Loss on discontinued operations ($66000)

Income tax applicable to loss on ($23,000)

discontinued operations

Total discontinued operations $89,000

Income before extraordinary item $430,000

Extraordinary item:

Loss on write-down of inventory ($37000)

Income after extraordinary item $393,000

Other comprehensive income:

Unrealized gain on available-for-sale securities $27,000

Comprehensive Income $420,000

EPS = Net Income of a company / Outstanding Shares

EPS = $420,000/200,000

EPS = $2.1 per share

4 0

4 years ago

The following data (in millions) are taken from the financial statements of Target Corporation: Recent Year Prior Year Revenue $

Sliva [168]

Answer:

1.88% and $1,339

Explanation:

The computation of the amount of change revenue is shown below:-

Amount of change revenue = Recent year - prior year

= $72,618 - $71,279

= $1,339

Percentage of change revenue = (Recent year - prior year) ÷ Prior years

= ($72,618 - $71,279) ÷ $71,279

= $1,339 ÷ $71,279

= 1.88%

We simply applied the above formulas

8 0

3 years ago

If Calibrated believes that orders will fall off by no more than 15% following a 10% price increase, should it go through with t

ra1l [238]

Answer:

should it hold the price constant and meet all the excess demand with an increase in production

Explanation:

to determine if the firm should increase their price or not, we have to determine the elasticity of demand.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. the absolute value of elasticity would be less than one

elasticity of demand = 15% / 10% = 1.5

Demand is elastic. if price is increased, the quantity demanded would fall more than the change in price and total revenue would fall.

7 0

3 years ago

Suppose Charles and Dina are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix

marin [14]

Answer and Explanation:

As per the data given in the question,

a) Dominant strategy is that strategy in which a player chooses strategy irrespective of the strategy which other player has already chosen.

For Charles, If Dina chooses right he will choose right because payoff is higher (6 > 3) but if Dina chooses left he will choose left because payoff is

is higher (7>6) So, he doesn't have any strategy.

For Dina, he will choose right because it gives highest payoff whether Charles choose right or left.

The dominant strategy is for Dina to choose right.

b)

The outcome matching the unique Nash equilibrium in this game is :

Nash equilibrium is that in which both players will chose after keeping in mind the other players' strategy.

Here equilibrium is :

Charles chooses right(while Dina chooses Right) and Dina chooses right (while Janet chooses right).

4 0

3 years ago