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nordsb [41]
3 years ago
8

Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $1

8 per unit. The company’s monthly fixed expense is $8,100. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales
Business
1 answer:
Grace [21]3 years ago
3 0

Answer:

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

Explanation:

Break even point = \frac{Fixed Cost}{Contribution per unit}

Fixed Cost = $8,100

Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3

1. Break even points in units will be

= \frac{8,100}{3} = 2,700 units.

2. Break-even point in dollar sales

= Break even point in units X Sale price per unit

= 2,700 units X $21 = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales

= \frac{8,100 + 600}{3} = 2,900 units

Final Answer

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

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Fill in the blanks to complete the sentence. A manufacturing company has budgeted production at 5,000 units for May and 4,400 un
GarryVolchara [31]

Answer:

Direct material purchases in May = 21,670× $10= $216,700

Explanation:

Material purchase budget is determined by adding the closing inventory of material to the material usage budget less the opening inventory.

Material budgets for May will be prepared as follows:

Materials needed for May production = 5,500 × 3 = 16,500

Materials needed for June production = 4,400× 3= 13,200

Closing inventory of raw material in May =60% × June requirement = 60% × 13,200 =7,920

 Material purchase budget for February = Usage budget + closing inventory - opening inventory

= 16,500 + 7,920- 2,750=21,670

Direct material purchases in May = 21,670× $10= $216,700

3 0
2 years ago
Britt is a member of an environmental activist organization and has helped organize peaceful protests on campus. She is deeply i
larisa [96]

Answer:

Rebel

Explanation:

Burton Clark and Martin Trow, the two sociologists described about the four types of college subcultures.

1) Collegiate

2) Academic

3) Vocational

4) Rebel

Britt has all the characteristics of Rebel subculture, that is being deeply involved with ideas from the classroom and wider society of art, literature, and politics. They are aggressive nonconformism, and find critical detachment from the college they attend and from its faculty like Britt consider her professors ideas as outdated.

8 0
3 years ago
Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid w
8_murik_8 [283]

Answer:

B. $ 12 comma 600 comma 000

Explanation:

15,000 units x $700 cost per unit = 10,500,000 total cost

markup policy for the firm: 20% of total cost

the sales price will be the total cost for the order plus a 20% of that cost as a gross profit margin.

sales price = cost x (1 + 20%)

sales price = total cost x 1.20

sales price = 10,500,000 x 1.2 = 12,600,000

4 0
2 years ago
Divine Apparel has 3,100 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to st
Naya [18.7K]

Answer:

1.

                                                                              Debit                         Credit

Retained Earnings ($0.75*3,100)                         $2,325

Dividend payable                                                                                    $2,325

2. "No Journal Entry Required"

3.

                                                                              Debit                         Credit

Dividend payable                                                 $2,325

Cash                                                                                                        $2,325

Explanation:

The following journal entries will be required to be made

1. Recording declaration of dividend

The Divine Apparel shall record the the following journal entry on October 1 in respect of dividend declared by it.

                                                                              Debit                         Credit

Retained Earnings ($0.75*3,100)                         $2,325

Dividend payable                                                                                    $2,325

2.Record the entry on date of record

"No Journal Entry Required"

3.Record the payment of cash dividends

The Divine Apparel shall record the the following journal entry on October 31 in respect of dividend paid by it.

                                                                              Debit                         Credit

Dividend payable                                                 $2,325

Cash                                                                                                        $2,325

7 0
3 years ago
Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the r
Grace [21]

The original investment that Rob made was $4,981 with the rate of interest of 11% per year for 18 years.

<h3 /><h3>What do you mean by present value?</h3>

Present value (PV) refers to the current price of a future amount of money or move of cash flows given a certain price of return. Future cash flows are discounted at the discount price, and the better the discount price, the lower the present price of the future cash flows.

As per the given information:

A: $32,595

P: ?

r: 11%

n = 18 years

A=P(1+ \dfrac{r}{100} )^{n} \\\\32,595 = P(1+ 0.11)^{18} \\\\32,595 = P (1.11)^{18} \\\\32,595 = 6.5435P\\\\ P = \$4,981

Therefore, The original investment that Rob made was $4,981 with a rate of interest of 11% per year for 18 years.

learn more about present value:

brainly.com/question/20813161

#SPJ1

<h3 />

3 0
1 year ago
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