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Soloha48 [4]
3 years ago
6

A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building

is $5,000/month and additional utilities cost $15,000/month. The production line is open 24 hours every day of the month (calculate with 30 days per month). Each day has three 8-hour shifts with 10 workers present in each of these snifts. All workers get paid $30/hour. The materials used for your product cost $2,500/product. Your accountant advises you that your corporate taxes are estimated to be $500/product.
Calculate, how many products you must make and sell in one month to make a $1,000,000 profit per month.
Business
1 answer:
V125BC [204]3 years ago
4 0

Answer:

Break-even point in units= 172 units

Explanation:

Fixed costs=  5,000 + 15,000= $20,000

Direct labor cost= [(10*8)*3]*30= $7,200

Tax= $500 per unit

Direct material= $2,500 per unit

<u>To calculate the number of units to be sold, we need to use the following formula:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (20,000 + 7,200 + 1,000,000) / (9,000 - 500 - 2,500)

Break-even point in units= 172 units

<u>Prove:</u>

Sales= 172*9,000= 1,548,000

Variable costs= 172*3,000= (516,000)

Contribution margin= 1,032,000

Fixed costs= 27,200

Net income= 1,004,800

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Which of the following items are allowed when calculating an individual taxpayer's alternative minimum tax?a. Standard deduction
blsea [12.9K]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Alternative Minimum Tax (AMT) is an action taken by the Internal Revenue Service (IRS) to encourage every taxpayer to pay at least the minimum amount possible out of the income received. This includes a series of deductions that are not limited to <em>standard deductions</em>, <em>personal exemptions, medical and dental expenses, charitable donations, qualified taxing interest, </em>and <em>casualty losses</em>.

6 0
2 years ago
Matthew​ Liotine's Dream Store sells water beds and assorted supplies. His​ best-selling bed has an annual demand of 395 units.
Sergeu [11.5K]

Answer:

77.48 units

Explanation:

Data provided in the questions

Annual demand = 395 units

Ordering cost = $38

Holding cost per unit per year = $5

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{395}\times \text{\$38}}{\text{\$5}}}

= 77.48 units

hence, the economic order quantity is 77.48 units

We simply applied the above formula so that approximate units could come. And it always expressed in units

8 0
3 years ago
Define cultural intelligence<br>How important is it terms of doing business globulty
Alex17521 [72]
Cultural Intelligence can be described as the capability of a person to relate and communicate to different cultures including his own. This can be very important in terms of doing global business involving different cultures. This intelligence can be used to analyze other cultural techniques and easily relate to them. 
4 0
3 years ago
Discuss decision making under conditions of uncertainty, specifically using expected monetary value
IceJOKER [234]

Answer with Explanation:

The decision making under the conditions of uncertainty:

Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.

The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.

Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.

Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.

The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.

The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.

5 0
3 years ago
The cost of capital:
ladessa [460]

Answer:

Option A: is the expected rate of return on a capital investment.

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A capital is usually the money used to start up any business.

Cost of capital is simply cost of company's long-term sources of funds: debt, preferred equity and others. It shows how the market views the risk of the firm's assets. A firm must earn required return to compensate investors for the financing the business.

7 0
3 years ago
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