Answer:
b) $600,000
Explanation:
The break-even sales can be regarded as sales value in which the result makes the firm to report zero profit.
Total fixed costs was given from the question as ( $180,000)
The Contribution margin ratio was give from the question as ( 30%)= 0.3
✓break even point can be calculated as ratio of Total fixed costs to Contribution margin ratio. This can be expressed as
break even point=[Total fixed costs ]/ [ Contribution margin ratio.]
Substitute,
break even point= [ $180,000]/ [0.3]
=$600,000
Answer:
a. I have corrected the discrepancy in the Taylor account.
Explanation:
When expressing oneself the message needs to be concise and pass accross the intended idea in as few words as possible.
The second option (As per your suggestion, I have corrected the discrepancy in the Taylor account) is wordy and we can do without the first part of the sentence (As per your suggestion).
The selected option avoids long lead-ins, is written in an active voice, and has a conversational tone.
Answer:
$1,666,667
Explanation:
Let assume that the annual growth rate is Zero
PV = ($110,000)/(.05)
= $2,200,000
NPV= $2,200,000 - $2,000,000
= $200,000
Let assume that the benefit growth rate is 2%
PV = ($110,000)/(.05-.02)
=$110,000/0.03
= $3,666,667
NPV=
$3,666,667 - $2,000,000
= $1,666,667
Answer:
Complete the following statements: <u>THEORETICAL CAPACITY</u> would result in the largest production volume variance; <u>NONE OF THE CAPACITY CHOICES</u> would result in a favorable production volume variance.
a. theoretical capacity; none of the capacity choices
Explanation:
production volume variance = (actual unit quantity manufactured - budgeted unit quantity manufactured) x budgeted cost per unit
(actual production - theoretical capacity) x budgeted cost per unit = (250,000 - 275,000) x budgeted cost = 25,000 x budgeted cost
None of the capacity choices would result in a favorable variance because actual production was lower than all of them.
actual production 250,000 < theoretical 275,000
actual production 250,000 < practical 265,000
actual production 250,000 < normal 260,000