Answer:
23,750 units
Explanation:
The computation of the break even point in unit sales is shown below
Break even point = (Fixed expenses) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
The variable expense per unit is
= (Sale revenue - fixed expenses - net operating income) ÷ (Number of sales units)
= ($280,000 - $17,000 - $95,000) ÷ ($280,000 ÷ 10 per unit)
= ($280,000 - $17,000 - $95,000) ÷ (28,000 units)
= $6 per uni
And, the fixed expenses is $95,000
Now put these values to the above formula
So, the value would equal to
= ($95,000) ÷ ($10 - $6)
= 23,750 units
Answer:
work in process debit
raw materials inventory credit
--to record assignment of DM to work in process--
work in process debit
wages payable credit
--to record assignment of Labor to work in process--
work in process debit
manufacturing overhead credit
--to record assignment of MO to work in process--
Explanation:
We are n't given with numbers but we can determinate the account and were to post the value
a) Our materials stock decrease so we credited. We will debit WIP in order to balance the entry.
b) WIP as qualifies as assets (later it will become finished product that once sold will generate cash for the company) Thus, we need to debited. In the credit side there are two possible options:
if labor weren't paid then it will wages payable. If they were; we will credit cash to represent it.
c) for MO we credit for the allocate amount and debit WIP
At the end of the period, once we got the actual Manufacturing Overhead we will adjust
Answer:
A. Comcast should produce 6 units in the short run and shut down in the long run.
Explanation:
Comcast in operating cable business. The government of Philadelphia has imposed a tax of $99 every month. Comcast should produce 6 units in the short run. This will minimize it total cost and the company will be able to continue its operation in the short run. If the taxes persist in the long run then the company will go towards shut down.
P=present value
F=future value=500
n=number of years=2
i=annual interest rate=3%
We have
F=P(1+i)^n
=>
P=F/(1+i)^n
=500/(1.03^2)
= 471.30 to the nearest cent
Answer:
124 rooms per month
Explanation:
Total operating cost per month = 5500 +1000+1200+1868+(31*50)+(61*50)
= $14,168
Rental income per night = 115
Therefore, Breakeven point in number of rented rooms = 14168/115=123.2
Approximately, atleast 124 rooms should be rented in a month to break even