All categories

3 years ago

Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%

Business

1 answer:

Tasya [4]3 years ago

6 0

The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?

Answer:

Fixed costs are $480000

Explanation:

The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000

2400000 = Fixed cost / 0.2

2400000 * 0.2 = Fixed cost

Fixed costs = $480000

You might be interested in

A customer calls to order a gift for their oldest child's 8th

Illusion [34]

Answer:

suggest that he continues to buy from your company?

Explanation:

4 0

2 years ago

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of

Oxana [17]

Answer:

A. a separate schedule.

Explanation:

This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.

In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.

4 0

4 years ago

The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.

Monica [59]

Answer:

TVX Company

Stockholders Equity Section of the Balance Sheet, February 28

Common stock $632,400

Paid in capital in excess of par value, Common stock $449,040

Retained earnings $513,560

Total Stockholders Equity <u>$1,595,000</u>

<u>Workings</u>

Common Stock

= Common Stock + Dividends Declared

= 620,000 + ( 2% * 62,000 shares * $10 par value)

= 620,000 + 12,400

= $632,400

Paid in capital in excess of par value, Common stock

Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.

= Balance + Dividends Declared

= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)

= 423,000 + 26,040

= $449,040

Retained earnings

= Retained Earnings - Dividends distributed

= 552,000 - (2% * 62,000 * $31)

= 552,000 - $38,440

= $513,560

4 0

3 years ago

Explain how a firm's production function is related to its marginal product of labor, how a firm's marginal product of labor is

Ghella [55]

The price paid to each factor adjusts to balance the supply and demand for that factor. Because factor demand reflects the value of the marginal product of that factor, in equilibrium, each factor is compensated according to its marginal contribution to the production of goods and services.

<h3><u>Explanation:</u></h3>

The incremental profit that is being earned for an additional single unit by subtracting the price of the product and all the variable cost that is associated with that product is the marginal contribution. It is the earnings that is obtained in total for paying all fixed expense and also for the profit generation.

The price that is spent for the every factor in order to adjust balancing the supply and demand of that particular factor. This is because of the reason that, the value of the marginal product of any factor is controlled by the demand factor. Thus in an equilibrium state there will be a compensation of each factor based on the marginal contribution to the production of goods and services.

7 0

3 years ago

Are the large drug companies guilty of price gouging or of charging an unfair or exploitative price for their products? should a

Anvisha [2.4K]

Yes the large drug companies guilty of price gouging or of charging an unfair or exploitative price for their products and no <span>americans shouldnt be permitted to import drugs from canada or other countries</span>

4 0

4 years ago