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stiv31 [10]
3 years ago
12

QUIZLET Brandon's computer shop is considering two different configuration options. The first one is to have each computer built

by a sales associate when he or she has free time. The second option is to hire a dedicated assembly technician. Option A has variable costs of $50 per computer and no fixed costs. Option B has a fixed cost of $1,000 but variable costs of only $5 per computer. What is the cross-over point?
Business
1 answer:
natka813 [3]3 years ago
5 0

Answer:

The cross-over point is about 22 computers.

Explanation:

Fixed cost, F = 0

Variable cost = $50

Option B

Fixed cost, F = $1,000

Variable cost, V = $5

Therefore,

Total cost = F + (n × V)

n = no of units

Option A

Total cost TC = 50n

Option B

Total cost TC = 1000 + 5n

We can calculate cross-over point by equalizing two options :

50n = 1000 + 5n

45n = 1000

n = 22.2

The cross-over point is about 22 computers.

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Answer:

Explanation:

Sales revenue to be reported - $1,000,000

Warranty expense - $40,000

Unearned warranty revenue - $12,000

Cash = 1,000,000+12,000 = $1,012,000

Warranty liability - $40,000

5 0
3 years ago
Gammy Corporation provides services with a normal price of $800,000 and a trade discount of $100,000. Terms are 2/10, n/30 and t
oee [108]

Answer:

$686,000

Explanation:

net service revenue = gross revenue - discount for early payment

gross revenue = total sales price - trade discount

gross revenue = $800,000 - $100,000 = $700,000

net service revenue = $700,000 - 2%($700,000) = $700,000 - $14,000 = $686,000

4 0
2 years ago
The degree of risk is associated with the probability or magnitude of loss.
pochemuha

The degree of risk is associated with the probability or magnitude of loss. The given statement is true.

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4 0
1 year ago
Blossom Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at co
horsena [70]

Answer:

$1,012,696

Explanation:

The computation is shown below:

At Cost method:

Merchandise available for sale is :

= Beginning inventory + Purchases + Fright-in

= $403,500 + $3,608,000 + $169,500

= $4,181,000

At Retail method:

Merchandise available for sale:

= Beginning inventory + Purchases + Markups

= $604,000 + $5,393,600 + $424,000

= $6,421,600

Now

Ending inventory at retail is

= Retail  - Markdowns - Net sales

= $6,421,600 - $0 - $4,866,000

= $1,555,600

Now

Cost to retail ratio is

= $4,181,000÷ ($4,866,000 + $1,555,600)

= 65.10%

And finally the ending inventory at cost is

= $1,555,600 × 65.10%

= $1,012,696

8 0
3 years ago
Jose put $200 in a savings acount, where he will earn 10% interest annually. At the end of the year how much money will Jose hav
spayn [35]
20
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