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m_a_m_a [10]
3 years ago
10

The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operati

ng assets $3,000,000
Annual fixed costs 560,000
Unit selling price 40
Variable cost per unit 24
How many units must the division sell each year to achieve an ROI of 16%?
Business
1 answer:
balandron [24]3 years ago
5 0

Answer:

65,000 units

Explanation:

Let the number of units be sold = x

Operating Income= Sales- Variable cost – Fixed Cost

Operating Income = 40x - 24x - 560,000

Operating Income = 16x - 560,000

Return on Investment = Operating Income / Net Operating Assets  

16% = (16x - 560,000  )/ 3,000,000

480,000 = 16x - 560,000

16x = 480,000 + 560,000

16x = 1,040,000

x = 65,000 units

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You've decided to buy a house that is valued at $1 million. You have $150,000 to use as a down payment on the house, and you tak
Sergeeva-Olga [200]

Answer:

a. $6,237.

Explanation:

We use the PMT formula i.e shown in the attachment below:

Data provided in the question

Present value = $850,000

Future value = $0

Rate of interest = 8% ÷ 12 months = 0.66666%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the  monthly mortgage payment is $6,237

3 0
3 years ago
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

Accumulated depreciation of the equipment = $180,000

Now,

The book value of the equipment

= Cost of the equipment - Accumulated depreciation

= $300,000 - $180,000

= $120,000

Therefore,

Proceeds for selling

= Selling cost of the equipment - Book value of the equipment

= $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
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

(1+0.004)^{-n}= 0.20

now we use logarithmic properties to solve for n:

-n= \frac{log0.2}{log(1+0.004)

-403.16  

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0
3 years ago
A traditional GAAP income statement does not help managers to predict the financial results of their decisions. Which of the fol
Amiraneli [1.4K]

Answer:

A) The GAAP statement is based on cost function rather than cost behavior.

Explanation:

Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.

While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?

7 0
3 years ago
Which of the following is a period during which aggregate output, as measured by real GDP, declines
Klio2033 [76]

Answer:

D. Recession

Explanation:

Aggregate output in an economy declines during a recession. This is because economic activities are declining. When such occurs GDP declines. This is different from stagflation in the sense that during a recession, only real GDP declines. However, in a stagflation, the fall in GDP also results to the increase in inflation. During recessions, economic activities are low so is price level.

4 0
1 year ago
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