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Alexeev081 [22]
3 years ago
5

We are evaluating a project that costs $735,200, has an eight-year life, and has no salvage value. Assume that depreciation is s

traight-line to zero over the life of the project. Sales are projected at 80,000 units per year. Price per unit is $48, variable cost per unit is $33, and fixed costs are $730,000 per year. The tax rate is 22 percent, and we require a return of 12 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±15 percent.(a-1) Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)(a-2) What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)(b-1) Calculate the base-case cash flow and NPV. (Do not round intermediate calculations. Round your cash flow answer to the nearest whole number, e.g., 32. Round your NPV answer to 2 decimal places, e.g., 32.16.)(b-2) What is the sensitivity of NPV to changes in the quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)(c) What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. )
Business
1 answer:
Feliz [49]3 years ago
3 0

Answer:

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Explanation:

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The following are transactions and events of the general fund of Sycamore Hospital, a not-for-profit entity, for the 20X6 fiscal
BigorU [14]

Answer:

1. Dr Accounts receivable 6,600,000

Cr Patient services revenue 6,600,000

2. Dr Nursing services expense 2,100,000

Dr Other professional services expense 1,280,000

Dr Fiscal services expense 230,000

Dr General services expense1,520,000

Dr Bad debts expense 138,000

Dr Administration expense250,000

Dr Depreciation expense 480,000

Cr Cash 4,794,000

Cr Allowance for uncollectibles 138,000

Cr Accumulated depreciation 480,000

Cr Accounts payable 213,000

Cr Inventory 210,000

Cr Donated services 163,000

3. Dr Patient services revenue210,000

Cr Accounts receivable210,000

4. Dr Cash 200,000

Cr Net assets released from program use restrictions 200,000

5. Dr Cash 230,000

Cr Net assets released from equipment acquisition restriction 230,000

6.Dr Cash 150,000

Cr Contributions-Unrestricted 150,000

7. Dr Cash 6,455,000

Cr Allowance for uncollectibles 65,000

Cr Accounts receivable 6,390,000

8. Dr Investment securities 90,000

Cr Unrealized holding gain on investment securities 90,000

Explanation:

Preparation of the Journal entries for Sycamore Hospital.

1. Since we were told that the company Provided a total of the amount of $6,600,000 in patient services this means that the transaction will be recorded as:

Dr Accounts receivable 6,600,000

Cr Patient services revenue 6,600,000

2. Based on the information given we were told that the company had total operating expenses of the amount of $5,998,000 which means that the transaction will be recorded as:

Dr Nursing services expense 2,100,000

Dr Other professional services expense 1,280,000

Dr Fiscal services expense 230,000

Dr General services expense1,520,000

Dr Bad debts expense 138,000

Dr Administration expense250,000

Dr Depreciation expense 480,000

Cr Cash 4,794,000

Cr Allowance for uncollectibles 138,000

Cr Accumulated depreciation 480,000

Cr Accounts payable 213,000

Cr Inventory 210,000

Cr Donated services 163,000

3. Since we were told that Allowed contractual adjustments was the amount of $210,000 which is a deductions from gross patient revenue, which means that the transaction will be recorded as:

Dr Patient services revenue210,000

Cr Accounts receivable210,000

4. Based on the information given we were told that the company received a transfer of the amount of $200,000 for the payment of approved operating costs which means that the transaction will be recorded as:

Dr Cash 200,000

Cr Net assets released from program use restrictions 200,000

5. Since the company received a transfer of the amount of $230,000 from the temporarily restricted plant fund in order to purchase new equipment for the hospital, this means that the transaction will be recorded as:

Dr Cash 230,000

Cr Net assets released from equipment acquisition restriction 230,000

6.Since the company received the amount of $150,000 of unrestricted gifts, this means that the transaction will be recorded as;

Dr Cash 150,000

Cr Contributions-Unrestricted 150,000

7. Since the company collected accounts receivable except for the amount of $65,000 which was written off, this means that the transaction will be recorded as:

Dr Cash 6,455,000

(6,390,000 +65,000)

Cr Allowance for uncollectibles 65,000

Cr Accounts receivable 6,390,000

(6,600,000-210,000)

8. Based on the information given we were told that the company reported the amount of $90,000 as an increase in the market value, this means that the transaction will be recorded as:

Dr Investment securities 90,000

Cr Unrealized holding gain on investment securities 90,000

8 0
3 years ago
Teams are task groups that have matured to the _____ stage.A. formingB. stormingC. normingD. performingE. adjourning
Pie

The answer to this is D, Performing.

3 0
3 years ago
Read 2 more answers
What is market saturation?
Leona [35]
In economics, market saturation is a situation in which a product has become diffused (distributed) within a market;the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
3 0
3 years ago
Bradford, Inc., expects to sell​ 9,000 ceramic vases for​ $21 each. Direct materials costs are​ $3, direct manufacturing labor i
Ierofanga [76]

Answer:

Direct material= $19,500

Direct labor= $78,000

Overhead= $19,500

Explanation:

Giving the following information:

Direct materials costs are​ $3, direct manufacturing labor is​ $12, and manufacturing overhead is​ $3 per vase.

The following inventory levels apply to​ 2019:

Beginning inventory - Ending inventory

Direct materials ​3,000 units ​3,000 units

Finished goods inventory 300 units 500 units

Sales= 9,000 units

First, we need to determine the number of units to be produced:

Production= sales + desired ending inventory - beginning inventory

Production= 9,000 + 500 - 3,000= 6,500

Purchases (direct material)= produciton + desired ending inventory - beginning inventory

Purchases= 6,500 + 3,000 - 3,000= 6,500

Now, we can calculate the budgeted costs:

Direct material= 3*6,500= $19,500

Direct labor= 12*6,500= $78,000

Overhead= 3*6,500= $19,500

8 0
3 years ago
Rob changes his car every year and prefers a car that is always under warranty. Which option will suit him best?. . Select one o
never [62]
The correct answer to this question is this one: "B.. leasing a car for a certain period." Rob changes his car every year and prefers a car that is always under warranty. The option that will suit him best is that of B.. leasing a car for a certain period. Hope this helps answer your question

4 0
3 years ago
Read 2 more answers
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