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I am Lyosha [343]
2 years ago
15

Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30

%, and fixed expense is $250,000. Required: 1. Calculate Bay Area Cycle’s breakeven point in units and total sales dollars. (Round your Unit answer to nearest whole units and other answer to the nearest whole dollar.) 2. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio. (Do not round your intermediate answers and Round your percentage answer to the 1 decimal place and other answer to nearest whole dollar)
Business
1 answer:
NeX [460]2 years ago
3 0

Answer:

1. 6,944 units and $833,333.33

2.  $1,080,000 and  22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)  

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

                                      = $246,667 ÷ $1,080,000

                                      = 22.83%

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Answer:

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Explanation:

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The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending in
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If  Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2:

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Inventory turnover=$426,650/$90,125

Inventory turnover=4.7 times

Days' sales in inventory=$87,750/$ 426,650×365 days

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b) Inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3

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Inventory turnover=$643,825/$92,575

Inventory turnover=6.95 times

 

Days' sales in inventory=$97,400/$643,825×365 days

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Learn more here:

brainly.com/question/15520316

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Julie transferred a building with an adjusted basis of $240,000 for another building with a fair market value of $350,000 and $2
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Answer:

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Here

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Adjusted Basis $240,000

By putting values, we have:

Realized Gain = $375,000 - $240,000 = $135,000

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