Answer:
$1.5 million.
Explanation:
Calculation of the amount of the break-even sales for Grace Food Company:
Sales mix calculation will be:
Corn Flakes = $2,000,000/$2,500,000
= 0.80,
Frosted Flakes = $500,000/$2,500,000
= 0.20.
Calculation for the Contribution margin ratio will be:
(60%) × (0.80) + (50%) × (0.20) = 58�lculation for the Break-even point will be:
Break even point= Total Fixed Costs/Overall Contribution margin ratio
Hence,
$870,000/0.58= $1.5 million.
Therefore amount of break even sales will be $1.5 million.
Answer:
The necessary investement today is $783.53
Explanation:
Giving the following information:
An investor wishes to have $1,000 available in five years. The interest rate is 5%.
We need to use the following formula:
PV= FV/(1+i)^n
FV= 1000
i=0.05
n=5
PV= 1,000/(1.05)^5= $783.53
Answer:
reserves will be 0.1 billion
Explanation:
given data
discount rate = 1 %
borrow = $2 billion
reserve ratio = 10%
discount rate= 4.0% to 3.5%
to find out
bank reserves will be
solution
we know here discount rate is 1 % with borrow additional $2 billion and reserve ratio is 10%
and here discount rate is 0.5 % for 4% to 3.5 %
so here we can say bank will borrow $2 billion × 0.5
bank borrow = $1 billion
and
here bank reserves increase that is 10% × $1 billion
so reserves will be 0.10 × $1 billion = 0.1 billion
Answer:
$0
Explanation:
Since 100% of Cooper Corporation's stock were owned by Carole and Chris (who are siblings), then no one can recognize any loss or gain from the contribution of property (nor the distribution of property). Under section 351, no gain or loss can be recognized for the contribution of property in exchange for stocks in a controlled corporation.
Since the contribution was made through a carryover basis transaction less than 5 years before the liquidation, the distribution is carried out in the same way.
