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melomori [17]
3 years ago
9

Perform a sensitivity analysis by answering the following questions: a. What is the break-even point in sales dollars for RBC? b

. What is the margin of safety for RBC? c. What sales dollars would be required to achieve an operating profit of $210,000? $520,000?

Business
1 answer:
Rzqust [24]3 years ago
8 0

a). Break­even point = Total fixed costs ÷ Contribution margin ratio

Contribution ratio = Contribution margin ÷ Total sales

Contribution ratio = $822,212 ÷ $1,953,000 =  0.421

Break­even point = $520,000 ÷ 0.421= $1,235,154.

b). Margin of safety = Total Sales - Break-even point

Margin of safety = $1,953,000 – $1,235,154= $717,846.

c) Target profit =(Total fixed costs + Target profit) ÷ Contribution margin ratio

Target profit = ($520,000 + $200,000) ÷ 0.421= $720,000 ÷ 0.421= $1,710,214

Explanation:

The Data sheet has been added as an attachment

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Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead
enot [183]

Answer:

$23,122

Explanation:

Calculation to determine the overhead cost assigned to Product C9 under activity-based costing

First step is to calculate the cost allocation to machining activity and order filling

MACHINING

Equipment depreciation (0.60 : 0.10 : 0.30)

Machining=$47,000 x 0.60 = $28,200

Supervisory expense (0.60 : 0.20 : 0.20) Machining=$6,000 x 0.60 = $3600

Total $31,800

($28,200+$3,600)

ORDER FILLING

Equipment depreciation (0.60 : 0.10 : 0.30)

Order filling=$47,000 x 0.10 = $4,700

Supervisory expense (0.60 : 0.20 : 0.20)

Order filling=$6000 x 0.20 = $1,200

Total $5,900

($4,700+$1,200)

Second step is to calculate the Assign overhead costs to products:

Assign overhead costs to products:

Machining= $31,800 ÷ 10,000 MHs

Machining= $3.18 per MHOrder

Order Filling=$5,900 ÷ 1,000 orders

Order Filling = $5.90 per order

Now let calculate the Overhead cost for Product C9

Machining= $3.18 per MH × 6,900

Machining=$21,942

Order Filling= $5.90 per order × 200 Orders Order Filling=$1,180

TOTAL $23,122

($21,942+$1,180)

Therefore the overhead cost assigned to Product C9 under activity-based costing is $23,122

5 0
2 years ago
Which sentence best describes how money functions as a “store of value”?
pashok25 [27]
You can exchange money for goods and services.
5 0
3 years ago
Read 2 more answers
What factor counts the least in calculating a person's credit score?
aleksandrvk [35]

Rent and utility payments: In most cases, your rent payments and your utility payments are not reported to the credit bureaus, so they do not count toward your score.

4 0
2 years ago
debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, wor
Rina8888 [55]

Answer:

The conversion cost per equivalent unit is $3.31

Explanation:

The computation of the conversion cost per equivalent unit is shown below:

= Total conversion costs ÷ Total equivalent units

where,

Total conversion cost = completed units + Conversion costs during April

                                    = $6,000 + $35,000

                                    = $41,000

And, the total equivalents units equal to

= Finished good units × percentage of completion + ending work in process units  × percentage of completion

= 11,500 units × 100% + 1,500 units × 60%

= 11,500 units + 900 units

= 12,400 units

Now put these values to the above formula  

So, the per unit would equal to

= $41,000 ÷ 12,400 units

= $3.31 per unit

7 0
3 years ago
Which force in​ porter's competitive forces model would describe an organization that loses customers due to its product prices
Alexxandr [17]

I guess the correct answer is Substitute products and services

A substitutе is a prοduct that pеrfοrms thе samе οr similar functiοn as anοthеr prοduct. Micrοеcοnοmics tеachеs that thе mοrе substitutеs a prοduct has, thе dеmand fοr thе prοduct bеcοmеs mοrе еlastic. Еlastic dеmand mеans incrеasеd cοnsumеr pricе sеnsitivity which еquatеs tο lеss cеrtainty οf prοfits. Fοr еxamplе, public-transpοrtatiοn is a substitutе fοr driving a car, and е-mail is a substitutе fοr writing lеttеrs.

4 0
3 years ago
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