Answer:
The indifference point is $17,000
Explanation:
Giving the following information:
Location:
Alpha Ave.:
Fixed Costs= $ 5,000
Variable costs= $ 200 per person
Beta Blvd.:
Fixed costs= $ 8,000
Variable costs= $150 per person
We need to find the indifference point.
Alpha= 5000 + 200*x
Beta= 8000 + 150*x
5000 + 200x=8000 + 150x
50x=3000
x= 60
Answer:
794 composite units.
Explanation:
Calculation to determine the firm's break-even point in composite units
First step
Contribution Margin per Composite Unit:
Youth model $700
($140× sales mix of 5 )
Adult model model $4,365
($485× sales mix of 9)
Recreational model $3,210
( $535 × sales mix of 6 )
Contribution Margin per Composite Unit=8,275
($700+$4,365+$3,210)
Now let determine the Break-even Sales in Composite Units using this formula
Break-even Sales in Composite Units = Total Fixed Costs/Contribution Margin per Composite Unit
Let plug in the formula
Break-even Sales in Composite Units = $6,570,000/$8,275
Break-even Sales in Composite Units = $793.9
Break-even Sales in Composite Units = 794 composite units
Therefore the firm's break-even point in composite units is 794 composite units.
Answer:
$18,000 F
Explanation:
Actual overhead– Overhead Budgeted=
Overhead Controllable Variance
Actual overhead=$194,000
Overhead Budgeted=$212,000
$194,000–$212,000
=$18,000 F
(40,000 ×$3.80) + $60,000
=$152,000+$60,000
= $212,000
Therefore the manufacturing overhead controllable variance is $18,000 F
Answer:
Operating profit is projected to be $35,100
Explanation:
Morrow City International
Analysis of the Current and Projected demand to determine the Operating Profit
Particulars Current Projected Changes in
Demand Demand Demand
Selling price $8.50 $9.25 0.75
Less: Cost Price $5.80 $5.80 0
Contribution $2.7 $3.45 0.75
Margin
Unit Sold <u>79,000 72,000 -7000</u>
Total $213,300 $248,400 $35,100
Contribution
Note: Total contribution = Unit sold * Contribution margin