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zubka84 [21]
2 years ago
7

Which of the following is the formula for break-even point in sales dollars? A : Fixed costs divided by contribution margin rati

o. B : Fixed costs divided by unit contribution margin. C : Contribution margin ratio divided by fixed costs. D : Unit contribution margin divided by fixed costs.
Business
1 answer:
ruslelena [56]2 years ago
8 0

Answer:

B. Fixed costs divided by unit contribution margin

Explanation:

In sales dollars, Break-Even point = Fixed Costs ÷ Contribution Margin.

Break-Even point in (units) = Fixed Costs / (Sales price per unit - Variable costs per unit).

The Break even point is a measure of which a company can determine if when the product its manufactured or produced will start to be profitable.

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What transactions that are include in sales and sales return journal?
IceJOKER [234]
Sales journal, here goods that are sold on credit are recorded while in a sale return journal goods, initially sold on credit when returned are recorded here.
5 0
3 years ago
Holton Company makes three products in a single facility. Data concerning these products follow:
evablogger [386]

Answer:

86,700 minutes

Explanation:

a.  Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700  

Minutes required to produce 1000 units of B (1000 x 2) 2000  

Minutes required to produce 2000 units of C (2000 x 2) 4000  

Total minutes   =    86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

                         Product A Product B Product C  

Selling price per unit           $ 137.10     $ 74.80 $ 167.60  

Direct materials     $ 59.70       $ 41.70  $ 100.70  

Direct labor      $ 43.00       $ 13.30  $ 29.50

Variable manufacturing overhead $ 8.20       $ 4.30 $ 13.80

Variable selling cost per unit  $ 15.20       $ 3.10  $ 8.50

Total variable cost per unit        $ 126.10    $ 62.40 $ 152.50

Contribution margin per unit  $ 11.00  $ 12.40  $ 15.10

Mixing minutes per unit          26.90 2.00  2.00

Contribution margin per minute  $0.41 $6.20  $7.55

Rank in terms of profitability          3  2          1

Optimal production          223  1,000  2,000

 

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.  

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

8 0
3 years ago
If a firm faces ________________________, while the prices for the output the firm produces remain
DerKrebs [107]

Answer:

The correct answer is letter "B": lower costs of production.

Explanation:

Production Costs are any expense associated with manufacturing a good or providing a service. Production Costs provide a baseline for determining a product's profitability. The lower the production costs of a company, the higher the profits they will earn.

3 0
3 years ago
White Company manufactures furniture. Assume the following information: Manufacturing overhead is allocated based on machine hou
Lorico [155]

Answer:

overhead rate: 15

applied overhead 30,000

underapplicatio for 1,000

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

The manufacturing overhead rate is determinate by dividingthe total expected cost  by a cost driver. In this case, the machine hours.

estimated cost 150,000

expected machine hours 10,000

predeterminate overhead rate = 150,000/10,000 = 15

Next, to allocate cost, we multiply the actual value fo the cost driver by the rate

actual machine hours x MO rate

2,000 x 15 = 30,000 applied overhead.

Last, we compare with the actual overhead to determinate over or underapplied overhead:

applied - actual

30,000  -  31,000  = -1,000

Thew overhead was underapplied, as the cost were for 31,000 but we only recognize 30,000

3 0
3 years ago
What is the use of collateral?
bazaltina [42]
It is used to secure a small business loan
5 0
3 years ago
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