Unsure with this question . Can someone please help and explain ? Thank you !

A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100

pantera1 [17]

Answer:

a. Breakeven point = Fixed cost / Contribution margin

Contribution margin = Selling price - Variable costs per unit

Variable cost per unit = 2,000,000 / (5,000 * 365 days)

= $1.10

Contribution margin = 1.75 - 1.10

= $0.65

Breakeven point = 700,000 / 0.65

= 1,076,923 kg

Fixed cost per kilogram at those units is:

= 700,000 / 1,076,923

= $0.65

_________________________________________________________

b. Net profit at original prices:

= (Contribution margin * units produced) - Fixed costs

= (0.65 * 5,000 * 365) - 700,000

= $486,250

Less taxes:

= 486,250 * (1 - 35%)

= $316,062.50

Net profit after price increase:

New selling price = 1.75 * 1.1

= $1.93

Net profit = ((Selling price - Variable cost) * units sold) - fixed cost

= ( (1.93 - 1.10) * 5,000 * 365) - 700,000

= $814,750

After tax:

= 814,750 * (1 - 35%)

= $529,587.50

Dollar increase:

= 529,587.50 - 316,062.50

= $213,525

5 0

2 years ago

What is the difference between accounts payable and accounts receivable?

NeX [460]

Accounts payable - Accurately tracking what's owed to suppliers, ensuring payments are properly approved and processing payments.

$\: \: \: \: \: \: \: \: \: \: \: \:$

Accounts receivable - The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

5 0

2 years ago

Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following event

natita [175]

Answer:

D) South American cocoa bean producers refuse to ship to chocolate producers in the US.

Explanation:

A nonbinding rice ceiling means that the equilibrium price is below the price ceiling, so it will have no effect in real life. In order for the price ceiling to become binding and start to negatively affect the market, the equilibrium price must increase.

The only option that would increase the equilibrium price is option D, since the shortage of a key input will probably result in an increase in the price of the key input. If the price of a key input increases, the cost of producing chocolate will increase, resulting in a leftward shift of the supply curve.

A leftward shift of the supply curve will decrease the total quantity supplied and it will increase the price of chocolate at every level of quantity demanded. This will result in an increase in the equilibrium price which might ultimately change the price ceiling from nonbinding to binding.

6 0

2 years ago

After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May

umka2103 [35]

Answer:

question

1. how much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, year 3?

2. In lieu of the original facts, assume that Ingrid purchase only a phone list with a useful life of 5 years for $16,500.

How much amortization expense on the phone list can Ingrid deduct in year 1, year 2 and year 3?

Explanation:

The explanation is shown in the file attached. Thank you i hope it helps

Download docx

3 0

2 years ago

_____ refers to the idea that all organizational members are capable of leading themselves at least to some extent. a. Leaders

scoray [572]

Answer:

Option d (Self-leadership) seems to be the appropriate response.

Explanation:

Self-leadership seems to be a process through recognizing whoever you are, defining certain ideal perceptions, as well as consciously leading yourself towards yourself.
It, therefore, tells people who you are, but whether you're a certain kind of individual individuals would like to emulate.

Other possibilities aren't connected to the circumstance in question. So that is indeed the right choice.

6 0

2 years ago