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stepladder [879]
3 years ago
13

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be

$80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000. If Sam makes his proposed changes, how many sales in units will he need to make to keep prices the same while earning the same profit?
Business
1 answer:
kvasek [131]3 years ago
7 0

Answer:

New units sale= 2,063 units

Explanation:

Giving the following information:

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be $80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently, Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000.

First, we need to calculate the current profit:

Sales in units= 1,500

Contribution margin= (200 - 80)*1,500= 180,000

Fixed costs= 95,000 (-)

Profit= 85,000

To calculate the units required to adapt to the new changes using the following formula:

Break-even point= (fixed costs + profit)/ contribution margin

Break-even point= (80,000 + 85,000)/ (200 - 120)

Break-even point= 2,063 units

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while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent​
goldenfox [79]

Answer:

$4,050

Explanation:

Grey has $4,500 for shopping.

She spent 90%  while on shopping.

The amount spent = 90/100 x $4500

=0.9 x $4,500

=$4,050

7 0
3 years ago
4. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inven
IrinaK [193]

Answer:

$6400

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is considering that it shows whether or not the current assets can be used to settle the current obligations or liabilities of the company adequately.

The change in property, plant, and equipment of $48,000 is not an element of working capital, Hence change in working capital

= $8700 - $2300

= $6400

5 0
3 years ago
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,2
kipiarov [429]

Answer:

E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Explanation:

The Journal entry is shown below:-

Retained earnings Dr, $7,400 (14,800 × $0.50)

             To Common dividend Payable $7,400

(Being dividend declaration is recorded)

Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability

So the correct option is D.

4 0
3 years ago
The following information pertains to Crane Video Company.
AlekseyPX

Answer:

A. Cash balance per bank $ 9,066

Cash balance per books $9,066

B.Jul'31

Dr Cash $1,216

Dr Expenses for collection $ 26

Cr Note receivables $ 1,200

Cr Interest revenue $ 42

Jul'31

Dr Miscellaneous Expenses $ 34

Cr Cash $ 34

Explanation:

A. Preparation of Bank Reconciliation at July 31

BANK RECONCILIATION

Cash balance per bank, July 31, $7,863

Add Deposit in transit $ 1,800

Less Outstanding checks ($597)

Adjusted cash balance $ 9,066

Cash balance per books, July 31 $7,884

Collection of note receivable $1,216

($1200+$42-$26)

Less Bank service charge ($34)

Adjusted cash balance $ 9,066

B. Preparation of the adjusting journal entries at July 31 on the books of Crane Video Company

JOURNAL ENTRIES

Jul'31

Dr Cash $1,216

Dr Expenses for collection $ 26

Cr Note receivables $ 1,200

Cr Interest revenue $ 42

(To record note collection by bank)

Jul'31

Dr Miscellaneous Expenses $ 34

Cr Cash $ 34

(To record bank service charges)

8 0
3 years ago
Roger inherited 100 shares of Periwinkle stock when his mother, Emily, died. Emily had acquired the stock for a total of $60,000
Serjik [45]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0
3 years ago
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