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Ann [662]
3 years ago
11

Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150

,000 units (produced and sold):
Total Annual Costs (150,000 units)
Direct Material $200,000
Direct Labor $180,000
Manufacturing overhead $150,000
Selling, general, and administrative $100,000
Total = $630,000

a) Compute Breed's unit selling price that will yield a profit of $600,000, given sales of 150,000 units
b) Compute Breed's dollar sales that will yield a projected 20% profit on sales, assuming variable costs per unit are 60% of the selling price per unit and fixed costs are $225,000
c) Management believes that a selling price of $9 per unit is reasonable given current market conditions. How many units must Breed sell to generate the revenues (dollar sales) determined in requirement (b)?
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

(a) $8.20

(b) $1,125,000

(c) 125,000

Explanation:

(a) Unit selling price:

= (Total cost incurred + Desired profit) ÷ Number of units sold

= ($630,000 + $600,000) ÷ 150,000

= $8.20

(b) Profit = Dollar sales - Variable cost - Fixed cost

($ sales × 20% profit) = $ sales - ($ sales × 60%) - $225,000

($ sales × 20% profit) = ($ sales × 40%) - $225,000

$225,000 = ($ sales × 40%) - ($ sales × 20% profit)

$225,000 = ($ sales × 20%)

Dollar sales = $225,000 ÷  20%

                    = $1,125,000

(c) No. of units required to be sold:

= Dollar sales ÷ Selling price per unit

= $1,125,000 ÷ $9

= 125,000

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HD had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account balances of
oksano4ka [1.4K]

Answer:

$101 million income tax expense

Explanation:

The income tax of HD can be computed by beginning with income tax payable less the increase in deferred tax asset in the year and finally by deducting the portion of current deferred tax asset that cannot be realized as shown below:

Current income tax payable                           $90 million

increase in deferred tax asset($170-$130)     ($40 million)

unrealized deferred tax asset ($170*30%)      $51 million

income tax expense in income statement      $101 million

The HD income tax expense in income statement in 2021 is $101 million as computed due to the fact that prior payment in tax ha been paid in the year

7 0
3 years ago
Rusty sells his home for $330,000. He must pay a 6% brokerage fee which will be split evenly between the selling broker and list
Solnce55 [7]

Answer:

=$ 80, 200.00

Explanation:

selling price : $ 330,000.00

Commission 6 %:

Commissions paid = 6/100 x $ 330,000.00

     =$19,800.00

Closing costs =: $ 5000.00

Mortgage  paid : $ 225,000

Total payouts:  $19,800 + $50,00+ $225,000

   =$ 249, 800.00

Rusty Expects: $ 330,000.00- $ 249,800.00

   =$ 80, 200.00

8 0
2 years ago
b. D Corp stock currently trades at $50. August call options on the stock with a strike price of $55 are priced at $5.75. Octobe
coldgirl [10]

Answer:

The value of the time premium between the August and October options is $0.50

Explanation:

A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.

To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value

Time premium = 6.25 - 5.75 = $0.50

3 0
3 years ago
An individual has utility function U(x)=x1/4U(x)=x1/4 for salary, and is considering new job offer which pays $80,000 with a bon
vladimir2022 [97]

Answer:

108,280.22

Explanation:

Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable

U(x) = x^1/4

U^-1(x) = x^4

U^-1(x) === x^4

CE(x) = x^4

Salary   Bonus   Total income   U(x)= x^(1/4)       P(x)        U(x)*P(x)

80000       0          80000               16.82                1/7             2.4

80000    10000     90000               17.32                1/7            2.47

80000    20000    100000              17.78                1/7            2.54

80000    30000    110000               18.21                 1/7            2.6

80000    40000    120000              18.61                 1/7            2.66

80000    50000    130000              18.99                1/7            2.71

80000    60000    140000              19.34                1/7             <u>2.76</u>

Sum                                                                                             <u>18.14</u>

CE(x) =  18.14^4

CE(x) = 108280.22

So therefore,  the certainty equivalent of this job offer is 108,280.22

5 0
3 years ago
What happens to the price of these needed goods if production declines and there are fewer goods to go around?
Lostsunrise [7]

Answer:

the price increases

Explanation:

its inflation due to the decrease in production of the the product but not the need for it the price will rise.

5 0
3 years ago
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