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Stells [14]
3 years ago
15

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha

ve presented proposals. The fixed costs are $ 50 comma 000 for proposal A and $ 70 comma 000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00. Vendor A and Vendor B have the same cost when the output volume​ = nothing units ​(round your response to the nearest whole​ number).
Business
2 answers:
MaRussiya [10]3 years ago
7 0

Answer:

10,000 units

Explanation:

Given:

Total fixed costs for proposal A = $50,000

Total fixed costs for proposal B = $70,000

Variable cost for proposal A = $12

Variable cost for proposal B = $10

Revenue generated by each vendor = $20

let the number of units be 'x'

Now,

Cost of proposal A = Cost of proposal B

Fixed cost + x × Variable cost of proposal A = Fixed cost + x × Variable cost of proposal B

or

$50,000 + x × $12 = $70,000 + x × $10

or

x × $12 - x × $10 = $70,000 - $50,000

or

x × $2 = $20,000

or

x = 10,000 units

andrezito [222]3 years ago
3 0

Question is Incomplete

a) What is the break-even point in units for proposal A?

b) What is the break-even point in units for proposal B?

Answer:

a. Break Even Point for Proposal A = 6,250 Units

a. Break Even Point for Proposal B = 7,000 Units

Explanation:

a. Calculating Break Even Point for Proposal A

Given

For Proposal A:

Fixed costs = $50,000

Variable cost = $ 12.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $50,000

R = Generated Revenue = $20

V = Variable Cost = $12

By Substituton

Break Even Point = $50000/($20-$12)

Break Even Point = $50000/$8

Break Even Point = 6250 Units

a. Calculating Break Even Point for Proposal A

Given

For Proposal A:

Fixed costs = $50,000

Variable cost = $ 12.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $50,000

R = Generated Revenue = $20

V = Variable Cost = $12

By Substituton

Break Even Point = $50,000/($20-$12)

Break Even Point = $50,000/$8

Break Even Point = 6250 Units

b. Calculating Break Even Point for Proposal B

Given

For Proposal B

Fixed costs = $70,000

Variable cost = $ 10.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $70,000

R = Generated Revenue = $10

V = Variable Cost = $12

By Substituton

Break Even Point = $70,000/($20-$10)

Break Even Point = $70,000/$10

Break Even Point = 7,000 Units

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ziro4ka [17]

Answer:

a)

Rent Expense   Dr.$16,000

Bank                  Dr.$48,000

Prepaid Rent     Cr.$64,000

Explanation:

The company entered into lease on 1st November 2019 with rent of $8,000 per month. the company on 1st November 2019 recorded prepaid rent as follows; which is wrong

Prepaid Rent Dr. $72,000

Bank              Cr. $72,000

This is wrong entry as prepaid rent was overstated by ($72,000-$24,000 ) $48,000 and same like bank was understated by $48,000

The correct entry should have been like this as on 1st November 2019;

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By 31st December 2019, two months rent have already accrued so prepaid rent should be credited by (8000*2+48,000 for additional amount recorded)

<em>So the rectifying entry is; as on 31st December 2019</em>

<em>Rent Expense   Dr.$16,000</em>

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7 0
3 years ago
When distributing a third party research report to its clients, an investment adviser (IA) must:
alexira [117]

Answer:

D.

Explanation:

When distributing a third party research report to its clients, an investment adviser (IA) must disclose that there was a third party involved that prepared the report. This is because disclosing the reports origin is absolutely necessary and required by law when the person that prepared the report is anyone but the investment adviser. Mostly due to the fact that the clients place their trust in the investment adviser and are trusting him/her with their money.

8 0
3 years ago
Raven Company has a target of earning $71,900 pre-tax income. The contribution margin ratio is 25%. What amount of dollar sales
VMariaS [17]

The number of dollar sales to be achieved to reach the goal is $287,600

<h3>What is a dollar?</h3>
  • The official money of the United States of America is the USD (United States dollar).
  • One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.
  • The U.S. dollar, which is considered a standard, is the most widely used money in transactions globally. In addition, it is used as the official currency in several regions outside of the U.S., while many others use it alongside their own as an unofficial currency.

We have the following details:

Fixed Cost = $ 39,800

Earning Required = $71,900

Hence

Contribution Required= Fixed Cost+Earning Required

Contribution Required = ($39,800+$71,900)

Contribution Required = $ 111,700

We use then the following formula:

Contribution Margin ratio = Contribution Margin/Sales

25%= $ 109,900/Sales

Sales = $ 109,900/25%

Sales = $287,600.

The number of dollar sales to be achieved to reach the goal is $287,600

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Which trade scenario is most beneficial for a country?
weeeeeb [17]

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<h3>What is a trade?</h3>

Trade can be regarded as the means of exchange by an organization or country.

When the currency of a a country appreciate, the money will have value, export also boast the currency.

Therefore, option D is correct.

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2 years ago
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DanielleElmas [232]

The answer is publicity. Hope I helped!


6 0
3 years ago
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