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gtnhenbr [62]
3 years ago
5

Sales $ 2,000,000 100 % $ 500,000 100 % $ 2,500,000 100 % Variable expenses 800,000 40 % 250,000 50 % 1,050,000 42 % Contributio

n margin $ 1,200,000 60 % $ 250,000 50 % 1,450,000 58 % Fixed expenses 870,000 Net operating income $ 580,000 Knowledge Check 01 What is the amount of the break-even sales for Grace Food Company? $1.2 million $2.2 million $2.0 million $1.5 million
Business
1 answer:
Sonja [21]3 years ago
3 0

Answer:

$1.5 million

Explanation:

The computation of break even sales in dollars is shown below:

= (Fixed expenses) ÷ (profit volume ratio)

where,  

Contribution margin  = Sales  - Variable expense

= $2,500,000 - 1,050,000

= $1,450,000

And, Profit volume ratio = (Contribution) ÷ (sales) × 100

So, the Profit volume ratio = ($1,450,000) ÷ ( $2,500,000) × 100 = 58%

And, the fixed expenses is $870,000  

Now put these values to the above formula  

So, the value would equal to  

= ($870,000) ÷ (58%)  

= $1.5 million

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Answer:

ABC net income for the year is $42,500

Explanation:

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = Beginning total assets + Ending total assets ÷ 2

= ($400,000 + $450,000) ÷ 2

= $425,000

Return on assets = 10%

Therefore,

Net income ÷ Average total assets = Return on assets

Net income = Return on assets × Average total assets

Net income = 0.1 × Average total assets

= $425,000 × 0.1

= $42,500

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3 years ago
Suppose an increase in demand in the market for mutual funds (a financial capital market) causes the interest rate to increase f
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With the increase in the demand of the mutual funds, the quantity supplied of the mutual funds will also increase because of the increase in the rate of interest.

<u>Explanation:</u>

All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.

As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.

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3 years ago
Jonathan's company has been operating under restrictions placed by the state government. His company now has to issue public sta
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Answer: direct and indirect

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Right on Plato

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3 years ago
Marigold Corp. has begun and ending raw materials inventories of $64000 and $80000, respectively. If direct materials used were
blondinia [14]

Answer:

The answer is $126,000

Explanation:

Please find the attached file for the calculation.

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On June 30, 2021, Mabry Corporation issued $5 million of its 8% bonds for $4.6 million. The bonds were priced to yield 10%. The
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Answer:

D. $30,000

Explanation:

The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

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3 years ago
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