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olchik [2.2K]
3 years ago
6

Agassi Corporation sells products for $90 each that have variable costs of $60 per unit. Agassi’s annual fixed cost is $450,000.

Required Determine the break-even point in units and dollars.
Business
1 answer:
Fittoniya [83]3 years ago
4 0

Answer:

Break even point in unit will be 15000

And in dolor it will be $1350000

Explanation:

We have given selling price for each product = $90

Variable cost = $60 per unit

Contribution margin = $90 - $60 = $30 per unit

Fixed cost = $450000

We have to find the break even point

We know that break even point is given by

Break even point =\frac{fixed\ cost}{contribution\ margin}=\frac{450000}{30}=15000unit

Break even point in dolor = $90×15000 = $1350000

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tekilochka [14]

Answer:

1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.

  • variable overhead cost variance = $1,000 unfavorable
  • variable efficiency variance = -$1,200 favorable
  • fixed overhead costs = $1,500 unfavorable
  • fixed overhead volume variance = -$100 favorable

2. EXPLAIN (as best you can) why the variances are favorable or unfavorable. Based on cost and efficiency budget standards.

  • variable overhead cost variance is unfavorable because actual variable overhead costs per unit are higher than budgeted.
  • variable efficiency variance is favorable because the company used less direct labor hours than budgeted to produce a higher amount of units (1,600 vs. 2,000).
  • fixed overhead costs are unfavorable because total fixed overhead costs were much higher than budgeted, but most of this variance can be explained by higher output.
  • fixed overhead volume variance are favorable because a higher volume was produced using less hours than budgeted.

Explanation:

Static budget variable overhead $1,200

Actual variable overhead $4,000

Static budget fixed overhead $1,600

Actual fixed overhead $3,100

Static budget direct labor hours 800 hours

Actual direct labor hours 1,600

Static budget number of units 400 units

Actual units produced 1,000

Standard direct labor hours 2 hours per unit

Actual direct labor hours 1.6 per unit

standard variable rate = $1,200 / 400 units = $3 per unit

actual variable rate = $4,000 / 1,000 units = $4 per unit

standard fixed rate = $1,600 / 800 hours = $2 per hour

actual fixed rate = $3,100 / 1,600 hours = $1.9375 per hour

variable overhead cost variance = actual costs - (standard rate x actual units) = $4,000 - ($3 x 1,000) = $1,000 unfavorable

variable efficiency variance = (actual hours x standard rate) - (standard hours x standard rate) = (1,600 × $3) − (2,000 x $3) = $4,800 - $6,000 = -$1,200 favorable

fixed overhead costs = actual overhead costs - budgeted overhead costs = $3,100 - $1,600 = $1,500 unfavorable

fixed overhead volume variance = (actual fixed rate x actual hours) - (standard rate x actual hours) = ($1.9375 x 1,600) - ($ x 1,600) = $3,100 - $3,200 = -$100 favorable

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3 years ago
What is home equity?
mariarad [96]

Answer:

A proportion of your property that you truly own.

Explanation:

Home equity is a homeowner's interest in a home. It can increase over time if the property value increases or the mortgage loan balance is paid down.Put another way, home equity is the portion of your property that you truly “own.” You're certainly considered to own your home, but if you borrowed money to buy it, your lender also has an interest in it until you pay off the loan.

Btw I found this in a website

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<h3>What are the statements?</h3>

Statements are sentences that can either be true or untrue. As a result, a statement is a claim that something is true or false.

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Answer:

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B. Expenditure - product market

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A.

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