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PilotLPTM [1.2K]
3 years ago
10

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a ne

w machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine?
Business
1 answer:
Leona [35]3 years ago
6 0

Answer:

12,000 units

Explanation:

The computation of the level of production is shown below:

Since the variable cost is reduced by $5 so new variable cost is $70 so there is an margin of $5

And, there is an increase in fixed cost i.e $60,000

So, the level of production is

= An increase in fixed cost ÷  Margin per unit

= $60,000 ÷ $5

= 12,000 units

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<span>Answer: This means that income is 8.5 times greater than his annual interest expense. In other words, it can afford to pay additional interest expenses.</span>
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What do employers seek when they are looking for "groupings" of collective skills and knowledge?
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A company sold equipment for $100,000; the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company
antiseptic1488 [7]

Answer:

Debit to loss on sale of equipment of $20,000

Explanation:

Data provided in the question:

Selling cost of the equipment = $100,000

Cost of the equipment = $300,000

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Now,

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= Cost of the equipment - Accumulated depreciation

= $300,000 - $180,000

= $120,000

Therefore,

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= $100,000 - $120,000

= - $20,000

Here, the negative sign depicts a loss

Hence,

The company’s journal entry to record the sale of the equipment would include a Debit to loss on sale of equipment of $20,000

7 0
3 years ago
Which goal incorporates most of the criteria required for a SMART goal?
stellarik [79]

Answer:

E. Zeenat plans to become a kindergarten teacher, she has a part-time job to help finance her education and plans to obtain her graduate degree in education in three years.

Explanation:

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EPS is Net Income attributed to shareholders divided by no. of shares outstanding. The dividend on preferred stock is subtracted from net income before calculating earnings per share (EPS). Following is the formula for Earnings per share

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= $1.74

Therefore, earnings per share would be $1.74.

8 0
3 years ago
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