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Phantasy [73]
3 years ago
13

Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that w

as popular in the 1930s. The retro-look cycle would be sold for $15,000 and at that price, Thad estimates 300 units would be sold each year. The variable cost to produce and sell the cycles would be $11,250 per unit. The annual fixed
cost would be $1,012,500.
What is the break-even in unit sales?
What is the margin of safety in dollars (Omit the "$" sign in your response.)
Business
1 answer:
levacccp [35]3 years ago
6 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Price= $15000

Q=300

The variable cost to produce and sell the cycles would be $11,250 per unit.

The annual fixed cost would be $1,012,500.

A)break-even point in units=fixed costs/contribution margin= 1012500/(15000-11250)= 270 units

B) margin of safety= budgeted sales - break-even sales

Margin of safety= 4500000-4050000= $450000

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A company is in its first month of operations. Supplies worth $4,000 were purchased on January 5. At the end of the month suppli
never [62]

Answer:

Explanation:

The adjusting entry is shown below:

Supplies expense A/c Dr $1,000

       To Supplies A/c                       $1,000

(Being supplies are adjusted)

Since in the question, it is given that the supplies were purchased at $4,000 and in hand it was $3,000 so, the remaining balance i.e $1,000 ($4,000 - $3,000) would be adjusted to the supplies expense account.

6 0
3 years ago
The argument advanced by Milton Friedman for adopting a monetary growth rule is that A. the growth rate of M1 has been unstable.
Y_Kistochka [10]

Answer:

C. active monetary policy potentially destabilizes the economy.

Explanation:

5 0
2 years ago
As treasury secretary, Alexander Hamilton Select one: a. wanted to eliminate the national debt. b. opposed the federal governmen
Anna35 [415]

Answer:

C) supported the creation of a national bank.

Explanation:

As the first treasury secretary, Alexander Hamilton supported the creation of a national bank because he believed it would strengthen the national economy, since the country had been recently formed.

He finally succeeded in creating the Bank of the United States in 1791, which was the first national bank of the US. The Bank of the US started operating in 1797 in Philadelphia.

5 0
3 years ago
Pina Colada Corp. had beginning inventory of $16500 at March 1, 2017. During the month, the company made purchases of $71500. Th
patriot [66]

Answer:

The cost of goods sold is $68970

Explanation:

The cost of goods sold is the cost of inventory that a company sells in a partcular period.

The cost of goods sold can be calculated as,

Cost of Goods sold = Opening inventory + Purchases - Closing Inventory

Cost of Goods Sold = 16500 + 71500 - 19030  = $68970

4 0
3 years ago
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. Durin
hjlf

Answer:

Global Marine

a. Indication of the accounts and amounts for each transaction:

a. Cash $5,500,000 Common stock $500,000 Additional Paid-in Capital $5,000,000

b. Treasury stock $125,000 Additional Paid-in Capital $1,125,000 Cash $1,250,000

c. Cash $510,000 Treasury stock $50,000 Additional Paid-in Capital $460,000

d. Cash $490,000 Treasury stock $50,000 Additional Paid-in Capital $440,000

b. Journal Entries:

a. Debit Cash $5,500,000

Credit Common stock $500,000

Credit Additional Paid-in Capital $5,000,000

To record the issuance of 100,000 shares of the common stock at $55 cash per share.

b. Debit Treasury stock $125,000

Debit Additional Paid-in Capital $1,125,000

Credit Cash $1,250,000

To record the repurchase of 25,000 shares at $50 cash per share.

c. Debit Cash $510,000

Credit Treasury stock $50,000

Credit Additional Paid-in Capital $460,000

To record the re-issuance of 10,000 shares from treasury for $51 per share.

d. Debit Cash $490,000

Credit Treasury stock $50,000

Credit Additional Paid-in Capital $440,000

To record the re-issuance of 10,000 shares from treasury for $49 per share.

Explanation:

a) Data and Calculations:

Authorized common stock shares, 1,000,000 at $5 par value

Net income earned during the year = $400,000

Selected transactions:

a. Cash $5,500,000 Common stock $500,000 Additional Paid-in Capital $5,000,000

100,000 shares of the common stock at $55 cash per share.

b. Treasury stock $125,000 Additional Paid-in Capital $1,125,000 Cash $1,250,000

25,000 shares at $50 cash per share.

c. Cash $510,000 Treasury stock $50,000 Additional Paid-in Capital $460,000

10,000 shares from treasury for $51 per share.

d. Cash $490,000 Treasury stock $50,000 Additional Paid-in Capital $440,000

10,000 shares from treasury for $49 per share.

8 0
3 years ago
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