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3 years ago

In an acquisition the firm being purchased is the and the firm which is purchasing the other firm is the

1 answer:

4 0

In an acquisition, the firm being purchased is the target firm, and the firm which is purchasing the other firm is the acquiring firm.

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Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed

suter [353]

Answer:

Contribution margin ratio = 1 - variable cost ratio

= 25%

(a) $Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}$

$Break\ even\ in\ dollars=\frac{350,000}{0.25}$

= 1,400,000

$Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}$

$Break\ even\ in\ units=\frac{1,400,000}{56}$

= 25,000

(b) For profit of $42,000,

$sales=\frac{Profit+fixed\ cost}{contribution\ margin\ ratio}$

$sales=\frac{42,000+350,000}{0.25}$

= 1,568,000

$In\ units=\frac{sales}{sales\ price}$

$In\ units=\frac{1,568,000}{56}$

= 28,000

= $56 × 75%

= $42

New contribution margin = $\frac{New\ sales\ price-variable\ cost}{New\ sales\ price}$

New contribution margin = $\frac{70-42}{70}$

= 0.4

= 40%

$New\ Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}$

$New\ Break\ even\ in\ dollars=\frac{350,000}{0.4}$

= $875,000

$New\ Break\ even\ in\ units=\frac{New\ Break\ even\ in\ dollars}{New\ sales\ price}$

$New\ Break\ even\ in\ units=\frac{875,000}{70}$

= 12,500

3 0

3 years ago

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6

Vesna [10]

Answer:

$3540.

Explanation:

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Ending inventory comprises of goods bought in May, September and November

cost of the ending inventory :

(4 x $130) + (12 x $135) + (10 x$140) = $3540

6 0

3 years ago

Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. The broker quotes a price of $1,180. Jim

Dimas [21]

Answer:

Jim Busby and Bonds of Disk Storage Systems

The new price of the bond is:

= $21,059

Explanation:

a) Data and Calculations:

Quoted price of bond = $1,180

Face value of bond = $1,000

Coupon interest rate = 14%

Bond's maturity period = 25 years

Current yield to maturity = 12%

Therefore, new price of the bond is computed as follows:

Bond Price = C* (1-(1+r)-n/r ) + F/(1+r)n

where C = Periodic coupon payment = $140 ($1,000 * 14%)

• F = Face / Par value of bond = $1,000

• r = Yield to maturity (YTM) = 12% and

• n = No. of periods till maturity = 25 years

= $140 * (1 – (1+0.12)^-25)/0.12 +$1000/(1+0.12)^25

= $140 * (1 - -17.00)/0.12 + $1,000/17.00

= $140 * (18.00)/0.12 + $1,000/17.00

= $140 * 150 + $59

= $21,000 + $59

= $21,059

5 0

3 years ago

From June 2008 oil was at a high of $144.78 per barrel. During the period from April 2011 until July of 2014, the price of oil h

In-s [12.5K]

Answer:

I don't even know big cuh

3 0

3 years ago

Good friends, bernie and latasha, both studied accounting in college. recently, they decided to work together as co-owners of a

-BARSIC- [3]

This is an example of a partnership

3 0

3 years ago