Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
You will have to just take the whole amount then square root it and use pie to find the whole toll amount then. Subtract your original amount from it and your done !!
Answer:
since there is not enough room here I used an excel spreadsheet
Explanation:
Answer:
the internal rate of return is 6%
Explanation:
The computation of the internal rate of return is shown below;
Given that
Years Cash flows
0 -$20,790
1 $6,000
2 $6,000
3 $6,000
4 $6,000
Now apply the following formula i.e..
= IRR()
After applying the above formula, the internal rate of return is 6%
Answer:
Please see answers below
Explanation:
1. Prepare an income statement for the year ended, December 31, 2021
Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.
Details
$
Service revenue
500,000
Salaries expense
400,000)
Rent expense
20,000)
Depreciation expense
40,000)
Interest expense
5,000)
Earnings for the year
35,000
2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021
Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.
Details
$
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
3. Prepare a classified balance sheet as at 31, December
Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.
Details
$
Fixed assets
Equipment
400,000
Accumulated depreciation
135,000
Net fixed assets
265,000
Current assets
Cash
12,000
Accounts receivables
150,000
Prepaid rent
6,000
Supplies
30,000
Total current assets
198,000
Current liabilities
Accounts payable
($12,000)
Salaries payable
(11,000)
Interest payable
(5,000)
Working capital
170,000
Long term liabilities
Notes payable (due in two years)
(40,000)
Net total assets
395,000
Financed by;
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
