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mihalych1998 [28]
3 years ago
5

Afirm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable cos

ts per unit are $5, total fixed costs must be: A. $65,000. B. $900,000. C. $125,000. D. $215,000. E. $275,000.
Business
2 answers:
Rama09 [41]3 years ago
7 0

Answer:

total fixed cost= 90,000

Explanation:

Giving the following information:

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. The variable costs per unit are $5.

The pretax income is calculated using the following formula:

Pretax income= total contribution margin - total fixed cost

60,000= 25,000*(11 - 5) - total fixed cost

60,000 - 150,000= - total fixed cost

total fixed cost= 90,000

pshichka [43]3 years ago
3 0

Answer: $110,000

Explanation:

Given the following ;

Projected unit sale = 25,000

Cost per unit = $11

Projected Pretax income = $60,000

Variable cost per unit = $5

Total fixed cost =?

Pretax income is the earning accrued by a business after deduction all expenses except tax fees.

Pretax income can be calculated using the relation;

Pretax income = (Total contribution margin - fixed cost)

Total contribution margin = (Total cost per unit - Total variable cost)

Cost per unit total = 25000 × $11 = $275,000

Total variable cost = 25000 × $5 = $125,000

Total contribution margin = $275,000 - $125,000 = $170,000

Pretax income = total contribution margin - fixed cost

$60,000 = $(170,000 - total fixed cost)

Total fixed cost = $170,000 - $60,000 = $110,000

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Answer:

$544

Explanation:

LIFO means last in first out. It means it's the last purchased inventory that is the first to be sold.

The cost of the 250 units sold would be first deducted from the inventory purchased on the 25th

= 100 × 2.34 = $234

That leaves 250 - 100 = 150 units.

The cost of goods sold would be next allotted to the inventory purchased on the 9th

= 50 × 2.20 = $110

This leaves 150 - 50 = 100

The cost of the 100 would be alloted to the beginning inventory

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Total cost of goods sold = $200 + $110 + $234 = $544

I hope my answer helps you

5 0
3 years ago
last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable
Inga [223]

A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Present Yearly Net operating income (loss)

(Units * CM Per unit)-Fixed cost

Units Sales 415000|

[Selling Price Per Unit 70

\Variabel Expense Per unit 40|

Fixed Expenses 540000]

Compute the CM ratio

Selling Price Per Unit 70.00

Variable Expense Per unit 40.00

Contribution Margin per unit ( Selling Price - Variable Cost) 30.00

Ico Ratio =( CM/Selling Price) 42.857%

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5 0
1 year ago
Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of s
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Answer:

a.

Date                     Account Title                                          Debit             Credit

Jan. 31                 Product Warranty Expense                 $15,160

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<u>Working:</u>

Product warranty expense = Amount of sales for January * Estimated product warranty

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b.

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Jan. 31                 Product Warranty Payable                     $355

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                            Wages payable                                                          $105

The costs of the warranty will be taken from the liability account for warranties  because the warranty payable account represents that the company owes warranty repairs which the customer just came to collect.

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Imagine you are the manager of the housekeeping department of the local hospital. Recently, you have noticed that your worker’s
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