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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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Free cash flows are a. dividends that have been distributed to shareholders that are taxed as capital gains. b. liquid financial
ch4aika [34]

Answer:

The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.

Explanation:

One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.

In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.

In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.

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3 years ago
Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be
Sergeeva-Olga [200]

Answer a)  The letter b is best described as the estimate of the cost for an additional customer visit.

Answer b)  The letter y is best described as the observed store cost for a given month.

Answer c)  The letter x is best described as observed customer visit for a given month.

Answer d)  The estimated cost for 370 customer visits is

Y = a + bx

a =$ 687.65 b = $ 7.59 x = 370 customer visits

Y = $ 687.65 + ($ 7.59 * 370 customer visit) = $ 687.65 + $ 2,808.3  = $ 3,495.95

Answer e)  The percent of total variance that can be explained by regression equation is R2 = 0.79754 or 79.754%

8 0
4 years ago
Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely
MaRussiya [10]

Answer: Wholesaler

Explanation:

Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely a wholesaler.

A wholesaler involves someone who buys goods from the manufacturer or producer in bulk, that is large quantities and then sell to the retailers after which the retailer then sells to the consumers

Here, Television Haven is a whilesaler while the department store is a retailer.

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3 years ago
Toyoda Company buys gas pedals and other parts from subcontractors and puts them in its vehicles without changing their composit
julia-pushkina [17]

Answer:

Toyoda and the subcontractors.

Explanation:

According to UCC Article 2, both the manufacturer and the subcontractor are liable for any damage caused by any defects.

This situation happened (and continues to happen) with the Takata airbag recall, where several car manufacturers and Takata were liable for defective airbags. Takata already filed for bankruptcy, so the car manufacturers deal with the recalls themselves. Both of them are liable for the defective airbags even though Takata manufactured them.

3 0
4 years ago
William buys land for $40,000 cash. Ten years later, when the land has dropped in value to $30,000, William sells it to his wife
olga_2 [115]

The income tax consequences to William on the sale is that he realizes loss in the amount of $10,000 but does not recognize that loss.

Realized loss = Purchase cost - Sales cost

Realized loss = $40,000 - $30,000

Realized loss = $10,000

Hence, the income tax consequences to William on the sale is that he realizes loss in the amount of $10,000 but does not recognize that loss.

Therefore, the Option A is correct.

Missing options includes <em>"William realizes and recognizes loss in the amount of $10,000.  William realizes and recognizes zero gain or loss. William realizes loss in the amount of $10,000 but does not recognize that loss. None of the above."</em>

<em />

Read more about income tax

<em>brainly.com/question/1657264</em>

8 0
2 years ago
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