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kifflom [539]
3 years ago
11

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit cont

ribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit). Multiple Choice 858 composite units. 429 composite units. 6,161 composite units. 15,150 composite units. 7,575 composite units.
Business
1 answer:
Elan Coil [88]3 years ago
5 0

Answer:

858 composite units

Explanation:

\left[\begin{array}{cccc}&$CM&$Unit Mix&$weight&$Youth&105&5&525&$Adult&450&9&4,050&$Recreational&500&6&3,000&$Subtotal&&20&7,575&\end{array}\right]

We have to multiply the contribution per unit for the compose of the sales mix.

105x5 =    525

450x9= 4,050

500x6= 3,000

<u>Then we add it to get the composed unit contribution margin</u>

7,575

Then, we calcualte the BEP using this amount

\frac{Fixed\:Cost}{Contribution \:Margin \:MIX} = BEP\: MIX_{units}

Fixed Cost 6,500,000

Composite Units Margin 7575

\frac{6500000}{7575} = BEP\: MIX_{units}

BEP 858.0858086

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Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250).
Yanka [14]

Answer:

Ending Inventory  $ 64,000

Explanation:

To define the final inventory of the company it's necessary to find the cost of good of the period.  

As the company had a 43% of gross profit, it means that for every dollar of sales we have 0,43 dollar of Gross Profit, with this value is possible to know the total cost of the goods sold during the period, that it's the difference between Sales Revenue and Gross Profit.  

Total Sales Revenue had to be the net value after returns and discounts as it's detailed.  

Income Statement  

Sales revenue        $ 300,000  

Cost of goods sold  -$ 171,000  

Gross Profit            $ 129,000 43%

Beginning Inventory  $ 60,000

Purchases                  $ 175,000

Cost of goods sold  -$ 171,000

Ending Inventory    $ 64,000

7 0
3 years ago
In previous years, Cox Transport reacquired 4 million treasury shares at $22 per share and, later, 2 million treasury shares at
crimeas [40]

Answer:

$8 million

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Amount of increase in paid-in capital—share repurchase = Number of treasury shares × $4 = 2 million × $4 = $8 million

Therefore, Cox’s paid-in capital - share repurchase will increase by $8 million.

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4 0
1 year ago
In a planned economy, prices of commodities are controlled by _________.
GalinKa [24]

The correct answer is C. The government

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