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3241004551 [841]
3 years ago
7

Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit

are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? A. 48,000 B. 72,000 C. 3,600 D. 8,471
Business
1 answer:
____ [38]3 years ago
8 0

Answer:

Option (A) is correct.

Explanation:

Given that,

Estimated fixed cost = $288,000

Estimated variable cost = $14 per unit

Units expects to produce and sell = 60,000

Selling price = $20 per unit

We first need to calculate the contribution margin:

Contribution margin per unit:

= Selling price - Variable cost

= $20 - $14

= $6

The break even point in units is the ratio of fixed cost to the contribution margin per unit.

Break-even point in units:

= Fixed cost ÷ Contribution margin per unit

= $288,000 ÷ $6

= 48,000 units

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The records of Norton, Inc. show the following for July. Standard labor-hours allowed per unit of output 1.2 Standard variable o
ruslelena [56]

Answer:

Direct labor rate variance = $162,000 U

Direct labor efficiency variance = $48,000 U

Variable overhead rate variance = $240,000 F

Variable overhead efficiency variance = $72,000 U

Explanation:

As per the data given in the question,

Direct labor efficiency variance = (Standard hour - Actual hour) × Standard rate

-$48,000 = (60,000 * 1.2 - 73,600) × Standard rate

Standard rate = -$48,000 ÷ -1,600

= 30

Direct labor rate variance = (Standard rate × Actual hour - Direct labor)

= (30 × 73,600 - $2,370,000)

= -$162,000

= $162,000 U

Direct labor efficiency variance = $48,000 U

Variable overhead rate variance = (Direct labor hour × Actual hour - actual variable overhead)

= ($45 × 73,600 -$3,072,000)

= $240,000 F

Variable overhead efficiency variance = (72,000 - 73,600) × $45

= $72,000 U

3 0
3 years ago
Please help me What are interests?
den301095 [7]

Answer:

things that people are into or enjoy doing.

Explanation:

also known as hobbies or skills

4 0
3 years ago
Read 2 more answers
You have the following information on Marco's Polo Shop: total liabilities and equity = $210 million; current liabilities = $50
KengaRu [80]

Answer:

$60 million

Explanation:

The quick ratio is  the financial ratio of the current assets less inventory to current liabilities. While the accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity.

This may be expressed mathematically as

Assets = Liabilities + Equity

Given that quick ration is 1.7 and current liabilities = $50 million

1.7 = current assets less inventory/$50 million

current assets less inventory = 1.7 * $50 million

= $85 million

The total asset is made up of the current assets less inventory, inventory, fixed assets. Let the balance for fixed assets be y

$85 + $65 + y = $210   (all amounts in millions)

y = $210 - $150   (all amounts in millions)

y = $60   (all amounts in millions)

3 0
3 years ago
"Imagine a small agrichemical laboratory with a very small marketing budget develops a seed that produces grass, which grows two
NemiM [27]

Answer: Publicity

Explanation:

From the question, we are told that a small agrichemical laboratory with a very small marketing budget develops a seed that produces grass, which grows two-inches high and no higher.

Since the laboratory has a small marketing budget, the promotional element it can use to let others know about its discovery will be publicity.

Through publicity, the company can give out vital information about its new discovery. By doing this, the public will be aware of the innovation. Publicity is a marketing and promotion component.

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3 years ago
MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg
timama [110]

Answer:

weighted cost of capital for next year is 10.27 %.

Explanation:

Weighted cost of capital = Ke × (E/V) + Kd × (D/V)

Ke = Cost of Equity

    = Dividend Yield + Expected growth rate

    = $1.30 / $30.00 + 0.07

    = 0.11333 or 11.33 %

Kd = Cost of Debt

     = Interest × (1 - tax rate)

     = 11% × ( 1 - 0.21)

     = 8.69 %

Weighted cost of capital =  11.33 % × 60% + 8.69 % × 40%

                                         = 10.27 %

5 0
3 years ago
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