Answer:
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To find the total profit or loss for the month:
Add total fixed and total variable expenses to get total expense.
9,000 + 300 = 9,300
Total expense = 9,300
To get total profit/loss, less total expenses from total revenue.
Total revenue = 9,500
9,500 - 9,300 = 200
Total profit/loss = $200
Answer:
Break-even point= 110,000 units
Explanation:
Giving the following information:
Hurly Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50.
The break-even point in units is the number of units required to cover for the fixed and variable costs.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 165,000/1.5= 110,000 units
Answer:
the fixed cost per month is $20,600
Explanation:
The computation of the fixed cost is given below:
Fixed costs = Total Production Costs - Variable costs
= $30600 - $0.40 per unit × 25000 units
= $30600 - $10,000
= $20,600
hence, the fixed cost per month is $20,600
We simply deduct the variable cost from the total production cost so that the fixed cost could come
Answer:
$ 615,000
Explanation:
Data provided :
Capital budget = $ 650,000
Debt ratio = 40%
Equity ratio = 60%
thus,
The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000
= $ 390,000
Dividend to be paid = $ 225,000
Therefore,
the net income must be earned = $ 390,000 + $ 225,000
or
The net income must be earned = $ 615,000
