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spin [16.1K]
3 years ago
7

Riveria Co. makes and sells a single product. The current selling price is $32 per unit. Variable expenses are $20 per unit, and

fixed expenses total $43,200 per month. Sales volume for May totaled 4,100 units. Required: a. Calculate operating income for May. b. Calculate the breakeven point in terms of units sold and total revenues. c. Management is considering installing automated equipment to reduce direct labor cost. If this were done, variable expenses would drop to $14 per unit, but fixed expenses would increase to $67,800 per month. 1. Calculate operating income at a volume of 4,100 units per month with the new cost structure. 2. Calculate the breakeven point in units with the new cost structure. (Round your answer.) 3. Why would you suggest that management seriously consider investing in the automated equipment and accept the new cost structure
Business
1 answer:
Eddi Din [679]3 years ago
4 0

Answer:

Explanation:

Rivera Co

Selling price $32

Less Variable costs $20

Contribution $12

Sales Volume 4,100 units

A.

Sales = $131,200

Variable costs = $82,000

Contribution = $49,200

Fixed costs = $43,200

Gross profit/ operating income = $6,000

B.

Break even.point (units)= fixed costs divided by contribution per unit

= 43,200 / 12

= 3,600 units

Break even point sales = Break even point (units) x unit selling price

= 3,600 x $32

= $115,200

C.

Sales = $131,200

Variable costs = $57,40

Contribution = $73,800

Fixed costs = $67,800

Gross profit/ operating income = $16,000

D.

Break even.point (units)= fixed costs divided by contribution per unit

= 67,800 / ($32 - $14)

= 3,767 units

Break even point sales = Break even point (units) x unit selling price

= 3,767 x $32

= $120,533

E.

Management should consider the project because Operating income increased by $10,000.

However it takes more sales effort to break even (additional 167units more)

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Answer:

Option  B

Explanation:

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3 years ago
During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pled
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Answer:

D) It would not be recorded.

Explanation:

FASB means Financial Accounting Standards Board.

Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US.

No matter what kind of restriction a donor might impose, FASB standards require nonprofits to report finances in a way that makes it clear which funds have donor restrictions and which funds come without donor restrictions. FASB standards are in three categories: “unrestricted,” “temporarily restricted,” and “permanently restricted.”

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Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched.

Since the school will recieve the pledge ONLY if it is able to raise $500,000 in funds over the next year, then the pledge would not be recorded

3 0
3 years ago
does the social responsibility and social efficiency of a company weigh into your decision when buying a product
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Answer:

yes very much so

Explanation:

I would not want to associate my self with or support any company that doesn't have any concern for the environment in which operates in. Even if it's social efficiency is high.

6 0
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Bryan Dobbs, Director of Marketing at Sarga Inc. has received multiple complaints about Davy Siegler over the past two months. A
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Answer:

D. organizational citizenship behavior.

Explanation:

In this scenario exemplified in the question, it can be said that Davy has all work behaviors except the behavior of organizational citizenship.

This behavior can be described as one that is not mandatory as part of the functional requirements of a job position, but an employee who presents organizational citizenship helps the company to promote a culture favorable to the maintenance of ethics and the development and performance of the organization as one all.

Any informal action by the worker that benefits the organization is part of the behavior of organizational citizenship. Some of these dimensions of behavior are altruism, loyalty, conscience, self-development, obedience, etc.

These behaviors are capable of promoting the well-being of the employee and the entire organization.

3 0
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On January​ 1, Year​ 1, Gallagher Corporation issued 400 comma 000 stock options for 400 comma 000 shares to a division manager.
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Answer:

$1,000,000

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4 0
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