1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Verdich [7]
3 years ago
14

In 2019, Wildhorse Company had a break-even point of $244,000 based on a selling price of $5 per unit and fixed costs of $97,600

. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $442,000.
Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g. 20.)
Business
1 answer:
Luden [163]3 years ago
7 0

Answer:

unitary variable cost= $3

contribution margin ratio= 0.4

Explanation:

Giving the following information:

break-even point= $244,000

the selling price= $5 per unit

Fixed costs of $97,600.

First, we need to calculate the contribution margin ratio, we will use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

244,000= 97,600/contribution margin ratio

contribution margin ratio= 97,600/244,000

contribution margin ratio= 0.4

Now, we can calculate the unitary variable cost:

contribution margin ratio= (selling price - unitary variable cost)/seling price

0.4= (5 - unitary variable cost)/5

2= 5 -unitary variable cost

unitary variable cost= 3

You might be interested in
Is a decline in the value of the real against the us dollar good for embraer, bad for embraer, or a mixed bag? explain your answ
avanturin [10]

The decline in value of the real towards the U.S. greenback changed into precise for Embraer due to the fact the components for the nearby jets cost much less once they were translated into reals, making it tremendously reasonably priced to produce. therefore, Embraer's earnings margins have been high.

A decline in value takes place in any 12 months in which the modern market fee of actual assets is less than its adjusted base year price as of the lien date, January 1.

A depreciating asset is an asset that has a restrained powerful existence and may fairly be predicted to say no in value over the time it's miles in use. equipment, gadgets,s and different gadgets along with computer systems and books are depreciating property.

For example, if an asset is used 40% of the time for a non-public motive, the deduction for its decline in value is decreased by 40%. The decline in fee of positive property costing $300 or less may be the value, this is, you may be entitled to an immediate deduction.

Learn more about the decline in value here

brainly.com/question/25297296

#SPJ4

3 0
1 year ago
Which is NOT an example of an expense a) advertising b)insurance c)dividends d)depreciation
docker41 [41]

Answer:

c. dividends

Explanation:

not payable... so

7 0
3 years ago
Peter and Paul shared a sum of money in the ratio of 4:5. If peter got ₱56,000,what was the original amount of money?​
Natalka [10]

Answer:

126,000

Explanation:

56,000/4 = 14,000

5*14,000 = 70,000

56,000 + 70,000 = 126,000

8 0
2 years ago
Computing first-year depreciation and book value At the beginning of the year, Austin Airlines purchased a used airplane for $33
irakobra [83]

Answer:

1. a. $560,000

  b. $13,400,000

  c. $7,700,000

Explanation:

The computation of the depreciation expense and the year end book value for the first year is shown below:

a) Straight-line method:

= (Purchase value of airplane - residual value) ÷ (useful life)

= ($33,500,000 - $5,500,000) ÷ (5 years)

= ($28,000,000) ÷ (5 years)  

= $560,000

In this, the depreciation expense is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= Percentage ÷ useful life

= 100 ÷ 5

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $33,500,000, so the depreciation is $13,400,000 after applying the 40% depreciation rate

(c) Units-of-production method:

= (Purchase value of airplane - residual value) ÷ (estimated miles)  

= ($33,500,000 - $5,500,000) ÷ ($4,000,000 miles)

= ($28,000,000) ÷ ($4,000,000 miles)  

= $7 per miles

Now for the first year, it would be  

= Expected miles in first year × depreciation per miles

= 1,100,000 miles × $7 per miles

= $7,700,000

Now the book value would be

Straight-line method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  -  $560,000

= $32,940,000

Double-declining balance method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  - $13,400,000

= $20,100,000

Units-of-production method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  - $7,700,000

= $25,800,000

5 0
3 years ago
A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed
Elodia [21]

Answer:

It is cheaper to make the units in-house by $300,000.-

Explanation:

<u>First, we need to calculate the total avoidable production costs of making 300,000 units:</u>

Total variable cost= 300,000*15= $4,500,000

Total avoidable fixed cost= 800,000 - 200,000= $600,000

Total production cost= $5,100,000

<u>Now, the total differential cost of buying:</u>

<u></u>

Cost of buying= 300,000*18= $5,400,000

It is cheaper to make the units in-house.

5 0
3 years ago
Other questions:
  • Candy is trying to decide between two job offers. The compensation package for job A includes a $300 per-month health insurance
    6·1 answer
  • In addition to joint ownership ventures in china, intel has made substantial outlays in its own manufacturing and research facil
    9·1 answer
  • Angie asks her grandmother over the phone, "do you like the color of my new shirt that i'm wearing now?" this is an example of
    11·1 answer
  • Casio, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material scienc
    12·1 answer
  • Jack Palomo has deposited $2,500 today in an account paying 6 percent interest annually. What would be the simple interest earne
    15·1 answer
  • Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion
    5·1 answer
  • Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
    7·2 answers
  • 25. A firm that uses weighted average process costing has 400 units in Beginning Inventory that are 80% complete. During the per
    13·1 answer
  • Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 35%. Stock B has an expected return of 17%
    11·1 answer
  • The following strategy(ies) could be used to sustain the value provided by an organization: Group of answer choices Run Strategy
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!