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NikAS [45]
3 years ago
7

Mix Sweet Shop bakes and sells pies. Mix has annual fixed costs of​ $880,000 and a variable cost per pie of​ $7.50. Each pie sel

ls for​ $15.50 each. The firm expects to sell​ 500,000 pies annually. What is the break−even point in sales​ dollars?Select one:
a. 190,440
b. 110,000
c. 200,000
d. 280,000
Business
1 answer:
kolezko [41]3 years ago
3 0

Answer:

Break-even point in units= 110,000

Break-even point in dollars= $1,705,00

Explanation:

Giving the following information:

Mix has annual fixed costs of​ $880,000 and a variable cost per pie of​ $7.50. Each pie sells for​ $15.50 each. The firm expects to sell​ 500,000 pies annually.

We need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 880,000/ [(15.5 - 7.5)/15.5]= $1,705,000

Break-even point (units)= fixed costs/ contribution margin

Break-even point= 880,000/ (15.5 - 7.5)= 110,000 units

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Answer:

January 1, 2021, vehicle purchased on credit

Dr Vehicles 50,000

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January 31, 2021, first installment

Dr Notes payable 578.64

Dr Interest expense 250

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Interest expense = $50,000 x 6% x 1/12 = $250

February 28, 2021, second installment

Dr Notes payable 579.89

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Interest expense = $49,750 x 6% x 1/12 = $248.75

Generally loans are made on a 360 day year basis, that means that the monthly interest expense is always calculated as 1/12 of the annual interest charge.

4 0
3 years ago
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JulsSmile [24]

Answer:

$48,000

Explanation:

<em>What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20?</em>

<em />

Allowance for Doubtful Accounts 12/31/20 = Accounts receivable at 12/31 * Uncollectible percentage of Accounts receivable

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4 0
3 years ago
Which of these is true about the cash cow?
laiz [17]

Answer:

d

Explanation:

Cash cow relates to a company investment in a low growth market with a high market share.....

5 0
3 years ago
.) A currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate in th
d1i1m1o1n [39]

Answer:

The question does not fit the options, since the options all refer to a 2% interest rate in US dollars and a 6% interest rate in euros. While the question states that the interest rate in US dollars is 5% and the interest rate in euros is 4%.

The answer to the question is:

If you borrow $1,000,000 today, you will be able to purchase 800,000€. Or if you borrow 800,000€ today, you will be able to purchase $1,000,000.

Since the forward rate is higher, you should borrow dollars, invest in euros and after a year, purchase back dollars and pay back your debt.

Gain:

= 800,000€ x 1.04 = 832,000€ x 1.4 = $1,164,800, then you pay back your loan = $1,164,800 - ($1,000,000 x 1.05) = $1,164,800 - $1,050,000 = $114,800 gain

Options C will also yield gains:

option C = borrow 800,000€ and buy $1,000,000. After one year you will have $1,020,000 which you can use to purchase 850,000€. Your gain = 850,000€ - (800,000€ x 1.06) = 2,000€

7 0
3 years ago
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tangare [24]

Answer:

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5 0
3 years ago
Read 2 more answers
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