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9966 [12]
4 years ago
14

We are evaluating a project that costs $756,000, has a six-year life, and has no salvage value. Assume that depreciation is stra

ight-line to zero over the life of the project. Sales are projected at 67,000 units per year. Price per unit is $60, variable cost per unit is $25, and fixed costs are $665,000 per year. The tax rate is 35 percent, and we require a return of 20 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the accounting break-even point.
Business
1 answer:
8_murik_8 [283]4 years ago
3 0

Answer:

22,600 units

Explanation:

Depreciation = Asset price ÷ Usable life

                      = $756,000 ÷ 6

                      = $126,000

Break even point:

= (Fixed cost + Depreciation) ÷ (Sales price - Variable cost)

= ($665,000 + $126,000) ÷ ($60 - $25)

= $791,000 ÷ $35

= 22,600 units

Therefore, the accounting break-even point is 22,600 units.

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For Blossom Inc., variable manufacturing overhead costs are expected to be $21,050 in the first quarter of 2020, with $4,220 inc
tresset_1 [31]

Answer:

Explanation:

The preparation of the manufacturing overhead budget by quarters and in total for the year is shown below:

Particulars                    Quarter 1   Quarter 2  Quarter 3   Quarter 4   Total

Variable manufacturing

overhead costs              $21,050  $25,270   $29,490   $33,710    $109,520

Fixed overhead costs    $35,750  $35,750   $35,750   $35,750   $143,000

Total manufacturing       $56,800  $61,020  $65,240   $69,490   $252,520

costs

The variable manufacturing overhead costs is increased by $4,220 in every following quarter.

3 0
4 years ago
What is the future value of $1800 invested today at 18% interest in 30 years with interest compounded quarterly?
Lynna [10]

Answer:

Future value of amount will be $354182.711

So option (C) will be the correct option

Explanation:

We have given present value P=$1800

Rate of interest r = 18 %

Time t = 30 years

As interest is paid quarterly so

Rate of interest r=\frac{18}{4}=4.5%

And time period = 30×4 = 120

Future value is given by A=P(1+\frac{r}{100})^n=1800\times (1+\frac{4.5}{100})^{120}=1800\times 196.768=$354182.711

So future value of amount will be $354182.711

So option (C) will be the correct option

5 0
3 years ago
An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own.
Gekata [30.6K]

Options:

a. have no effect on; increase; decrease; negative

b. increase; increase; decrease; negative

c. increase; increase; increase; positive

d. increase; increase; decrease; uncertain

e. decrease; increase; decrease; negative

Answer:

Option D is the correct answer.

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to <u>increase</u> investment spending by the firms. At the same time we can expect the unemployment rate to <u>increase</u> and consumption spending to <u>decrease</u>. Overall the effect on gross domestic product (GDP) is <u>uncertain.</u>

Explanation:

Since, Firm choose to build venture by introducing tablets and PCs and hope to accomplish benefit level. And yet joblessness can be relied upon to increment and subsequently utilization spending will diminish. Thus, the general impact GDP is dubious in light of the fact that an underlying increment in venture increment the monetary development level by increment in work rate. On the off chance that business rate increment, at that point consequently utilization spending increment. And yet it was relied upon to expand joblessness rate which decline the utilization spending. Thus, all things considered GDP may increase or diminish . Consequently GDP is dubious.

8 0
3 years ago
Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. W
Daniel [21]
<h3>In the given scenario unemployment rate is 10% </h3>

Explanation:

In the given problem,

Number of People who are working is 90,000

Number of People who are not working but looking and available is 10,000

Unemployment rate = Percentage of the total labor force that is unemployed but actively looking for employment and ready to  work.  

Unemployment rate = ((Unemployed people * 100) / (Total people in an economy (Working + Available for work)))

Unemployment rate = ((10000 * 100) / (90000+10000))

Unemployment rate = (1000000 / 100000)

Hence, Unemployment rate = 10%

5 0
4 years ago
Read 2 more answers
An industrial distributor is
Oliga [24]

Answer: An intermediary that deals exclusively with the selling, stocking, and delivery of raw materials used by manufacturers in the production of its products.

Explanation:

An industrial distributor is an individual/organization that has the function of purchasing raw materials and selling these raw materials to industries that produce goods with those specific raw materials. The industrial distributors do not have any supply duty to consumers/retailers.

5 0
4 years ago
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