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slavikrds [6]
3 years ago
6

In 2012, Carow sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $250,000. The same s

elling price is expected for 2013. Carow is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Carow’s break-even point in units for 2013?
a. 1,000
b. 1,200
c. 1,250
d. 1,500
Business
1 answer:
Oksana_A [137]3 years ago
8 0

Answer:

A) 1,000 units

Explanation:

We first calculate the revised Fixed and Variable costs for 2013

In 2013,

Fixed costs = 250,000 * 1.20 = $300,000 as a result of 20% increase

Variable costs = 250 * 0.8 = $200 per unit as a result of 20% reduction

This gives us a contribution per unit of,

Contribution = Selling price - Variable costs = 500 - 200 = $300 per unit.

Revised break even point then,

Break even = Fixed Costs / Contribution per unit

Break even = 300,000 / 300 = 1000 units

Hope that helps.

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Which document not only helps in a job search but also helps in job advancement?Apart from a job search, a “blank”
rosijanka [135]

Answer:

resume

Explanation:

A resume aids the job-seeking process in that it: organizes experiences and skills.

3 0
3 years ago
Miguel Corporation, a foreign subsidiary of a U.S. parent company, has one asset (Land) and no liabilities. The functional curre
user100 [1]

Answer:

All the 4 statements are correct.

Explanation:

The International Accounting Standard on Currency changes says that the all the assets and liabilities of the subsidiary must be reported at market value of the asset both at the end of the year and at the time of sale of asset & payment of liability. So this means that the statement a and d are correct statements because the translation gain or loss is reported by using the spot rate which is the market value of the asset in the parent company's currency. Similarly, the statement b and c are correct because at the time of sale of subsidiary assets we are actually recognizing the remeasurement gain or loss by using the spot rate, which is the market value of the asset in the parent company's currency.

5 0
3 years ago
Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,
Colt1911 [192]

Answer:

2015 Cola Inc:

A/R  TO               9.51

Days to collect   38.00

2014 Cola Inc:

Inventory TO 10.18

Days to collect 36

2015 Soda Co:

A/R    TO 11.25

Days to collect   32

2014 Soda Co

A/RTurnover 11.28

Days to collect 32

Explanation:

<u>2015</u>

\frac{COGS}{Average Inventory} = $Inventory Turnover  

<em><u>​where: </u></em>

$$Average Account Receivable =(Beginning A/R + Ending A/R)/2

Sales             39,819

ending             4,531

beginnin         3,839

$$Average A/R=4531 + 3839)/2

Avg A/R           4185

\frac{39,819}{4185} = $A/RTurnover

A/R  TO 9.514695341

\frac{365}{A/R   TO} = $Days to collect

\frac{365}{9.51469534050179} = $Days to collect

Days on Inventory 38

<u>2014:</u>

\frac{35690}{3505} = $A/RTurnover

Inventory TO 10.18259629

\frac{365}{10.1825962910128} = $Days to collect

Days to collect 36

Soda Co:

<u>2015</u>

\frac{62483}{5554.5} = $A/RTurnover

A/R    TO 11.24907732

\frac{365}{11.2490773246917} = $Days to collect

Days to collect   32

<u>2014</u>

\frac{47932}{4250} = $A/RTurnover

A/RTurnover 11.27811765

\frac{365}{Inventory TO} = $Days on Inventory

\frac{365}{11.2781176470588} = $Days to collect

Days to collect 32

<u></u>

<u></u>

6 0
3 years ago
Gordon’s Smoothie Stand makes three types of smoothies: blueberry lemon, orange swirl, and triple berry. Before all flavors ar
Nitella [24]

Answer:

Let Blueberry lemon smoothies A

Let Orange swirl smoothies = B C

Let Triple berry smoothies = C

                                             Gordon’s Smoothie Stand      

Allocation of joint costs      

                                                                               A         B          C       Total

Number of cups produced A                            21.75   29.00   36.25  

Weight B                                                             2.00     1.00      2.00  

Weighted Number of cups produced C=A*B  43.50   29.00   72.50 145.00

Cost per batch D                                                                                     43.00

Cost/Weighted Number of cups produced E=D/C                                0.30

Cost allocated to each product F=C*E             12.90    8.60    21.50   43.00

5 0
3 years ago
he information systems department prides itself on being on the edge of high-tech course offerings. They were the first departme
alexgriva [62]

Answer: Technology

Explanation:

The options relating to the question are:

A) The environment.

B) Technology.

C) Geographical location.

D) Critical incidents.

Based on the information given in the question, we can infer that Corporate culture in this department is probably most affected by technology.

Since they were the first department to create online classes and also they were the first to solve the issues that were associated with these offerings, it simply means that they department was mostly affected by technology.

Lastly, Wally knowing that his subcutaneous chip was only a hiring decision away was because he knew that the department focused on technology.

Other options such as environment, geographical location and critical incidents are wrong in this case.

7 0
3 years ago
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