Answer:
Instructions are below.
Explanation:
Giving the following information:
Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
<u>1 machine:</u>
Break-even point in units= 2,100/ (45 - 17)
Break-even point in units= 75 costumers
<u>2 machines:</u>
Break-even point in units= 3,900/ 28
Break-even point in units= 139 costumers
If the demand is from 90 to 120 costumers per day, the company should buy 1 machine. <u>With this level of demand, the company will not cover the costs of two machines. </u>
Answer:
a. $80,000
Explanation:
In this question we are only concerned about the net income reported by Dodge on its income statement.
First we need to calculate ownership % in 2012 = 15% + 25% = 40%
Net income of 2012 (Gates) = $ 200000
hence Dodge will report net income of 40% of 200000 = $80000
Hence the correct answer is A
Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)
Answer:
Scubapro Corporation
The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:
E) 8,000 shares.
Explanation:
Data and Calculations:
Outstanding common stock = 500,000
Planned issue of additional shares = 200,000
Proportion of new issue to outstanding = 0.40 (200,000/500,000)
For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.
The earnings in a cooperative are shared with member owners. The cooperative societies distribute the profits to its members based on the business transacted with the Cooperative society.
Out of the above choices I would Asnwer. D Rent. Rent is an Essential (fixed) expense. The other expenses electricty, telephone and car repair are all variable expenses because they normally are net set rates every month. Due to the changng of amounts these expenses fluxtuate not allowing thme to be a fixed expense like rent is.
