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iragen [17]
2 years ago
9

Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $23,000 and variable exp

enses of $10,070. Product X96N had sales of $36,000 and variable expenses of $17,660. The fixed expenses of the entire company were $45,980. The break-even point for the entire company is closest to:
Business
1 answer:
Talja [164]2 years ago
3 0

Answer:

$865.75

Explanation:

The computation of break even point is given below:-

Total sales

= $23,000 + $36,000

= $59,000

Total variable cost

= $10,000 + $17,660

= $27,660

So, contribution margin = Total sales = Total variable cost

= $59,000 - $27,660

= $31,340

Profit volume ratio = (Contribution margin per unit) ÷ (Total sales) × 100

= $31,340 ÷ $59,000 × 100

= 53.11%

Since, the break even point = Fixed cost ÷ profit margin ratio

= $45,980 ÷ 53.11%

= $865.75

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You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ
alexgriva [62]

Answer:

A. 8.15

Explanation:

WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.

In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:

WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)

E = Common equity

D = Debt

PE = Preferred equity

%E = Common equity / total capital

%D = Debt / total capital

%PE = Preferred equity / total capital

Tax = Tax rate

<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>

<u>Calculation:</u>

Using the above formula we can calculate WACC

WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)

WACC = 0.0815 or 8.15%

7 0
3 years ago
E25-18 Making outsourcing decisions Cool Systems manufactures an optical switch that it uses in its final product. The switch ha
Vikentia [17]

Answer:

From a cost savings perspective the switch should be made in-house

Explanation:

In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to  both situations,then compare t see which option saves costs.

The cost of making the switch is calculated thus:

Direct materials per unit      $5

Direct labor                           $3

Variable overhead                <u>$6</u>

Total relevant cost               <u> $14</u>    

The cost of purchasing the switch from another supplier is $15

From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.

However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.      

7 0
2 years ago
how much money must you invest now at 4.7​% interest compounded continuously in order to have​ $10,000 at the end of 4 ​years?
Lemur [1.5K]

Answer: $12068.33

Explanation:

in the attachment

4 0
2 years ago
The ​short-run effect of consumers becoming more pessimistic will be for the
Bogdan [553]

Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.  

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.  

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

7 0
3 years ago
In order for a business to be really successful,
poizon [28]

it would be a as a team I hope this helps

3 0
1 year ago
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