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vredina [299]
3 years ago
11

Locus Company has total fixed costs of $117,500. Its product sells for $53 per unit and variable costs amount to $43 per unit. N

ext year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
a. 11,600.
b. 9,083.
c. 3,480.
d. 42,971.
e. 15,080.
Business
1 answer:
Sholpan [36]3 years ago
3 0

Answer:

12,925 units

Explanation:

Given,

Fixed expense = $117,500

If pretax income is 10% of fixed cost, the expected net operating income = $117,500 × 10% = $11,750.

Contribution margin per unit = $53 - $43 = $10.

We know,

Expected sales (units) = (Fixed expense + Target profit) ÷ Contribution Margin per unit

Expected sales (units) = ($117,500 + $11,750) ÷ $10

Expected sales (units) = $129,250 ÷ $10

Expected sales (units) = 12,925 units

As there is no information related to the next year, we will use current year information to find expected sales volume.

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If firms can easily enter and exit a​ market, then A. firms will produce at minimum average cost in the short run. B. firms will
enyata [817]

Answer:

The correct answer is option C.

Explanation:

`If firms can easily enter and exit the market, then firms operating in the market will earn zero economic profit in the long run. This is because the short run is too short for firms to enter and exit so potential firms will enter and exit in the long run.  

If the existing firms will be having negative profits, the firms having loss will exit the market. This will reduce market supply. As a result, the price level will increase. This will go on until all firms will have zero economic profits.  

Similarly, if the existing firms are having positive economic profits in the long run, the other firms will enter the market. This will increase the market supply such that the price level decreases. This will go on till all the firms will be having zero economic profits.

5 0
4 years ago
The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the
irinina [24]

Answer:

$87 million

Explanation:

The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

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Interest =  Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

Benefits paid paid by trustees = $6 million

The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million

6 0
3 years ago
(Numeric Entry) Suppose you put $1000 into a money market mutual fund that paid 10% a year, where interest was compounded annual
kkurt [141]

Answer:

$1100

Explanation:

Compound Interest is a multiplying effect interest , in which interest for each successive period  is calculated on (Principal + Interest) of each preceeding period .

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r = Interest rate , t = time , n = compound in time 't' , P = Principal

A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100

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4 years ago
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Serggg [28]

Answer:

The correct answer is B

Explanation:

Utilitarian approach or method is the approach which assesses or analyze the actions in terms of the outcomes or results, that is the net costs and the benefits to all the stakeholders on individual level.

This approach aspire or attempt to accomplish the greatest good for the  numbers when creating the least amount for preventing the suffering of the greatest amount.

So, the shop uses or practice the approach of utilitarian as it will provide them the extra one million dollar to put it in the marketing.

7 0
3 years ago
The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Receive
nirvana33 [79]

Answer:

See every requirement in details bellow

Explanation:

6 0
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