Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
Answer:
The amount of revenue to be recognized at 31st March is $383500
Explanation:
The revenue amount that should be recognized in the income statement as at March 31,2020 is the sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.
Hence, the amount of revenue as at 31st March is calculated thus:
Sales price $365000
Installation fee for 3 months(3/6*$37000) <u>$18500</u>
Total revenue as at 31st March $ 383,500
The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months
Answer:
Large Medium Small
Unit selling price $184 $160 $100
Unit variable cost 130 120 76
Unit contribution margin $54 $40 $24
Autoclave hours per unit 3 2 1
Total process hours per unit 5 4 2
Budgeted units of production 3,000 3,000 3,000
a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.
- total contribution margin for large safety plate glasses = $54 x 3,000 = $162,000
- total contribution margin for medium safety plate glasses = $40 x 3,000 = $120,000
- total contribution margin for small safety plate glasses = $24 x 3,000 = $72,000
b. Prepare an analysis showing which product is the most profitable per bottleneck hour.
contribution margin per autoclave hour:
- large safety plate = $54 / 3 = $18 per autoclave hour
- medium safety plate = $40 / 2 = $20 per autoclave hour
- small safety plate = $24 / 1 = $24 per autoclave hour ⇒ MOST PROFITABLE PRODUCT PER AUTOCLAVE HOUR (BOTTLENECK)
Answer:
The answer is Relational Database
Explanation:
Answer:
$3760
Explanation:
Calculation to determine the December 31 balance in Bad Debt Expense
Using this formula
Bad debt expense = Credit sales × Uncollectible percentage
Let plug in the formula
Bad debt expense= $94,000 × 4%
Bad debt expense= $94,000 × 0.04
Bad debt expense= $3760
Therefore the December 31 balance in Bad Debt Expense will be $3760
