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Lesechka [4]
3 years ago
12

g The contribution margin ratio of Donath Corporation's only product is 64%. The company's monthly fixed expense is $454,200 and

the company's monthly target profit is $40,200. Required: Determine the dollar sales to attain the company's target profit.
Business
1 answer:
zloy xaker [14]3 years ago
6 0

Answer:

Break-even point (dollars)= $772,500

Explanation:

Giving the following information:

The contribution margin ratio of Donath Corporation's only product is 64%. The company's monthly fixed expense is $454,200 and the company's monthly target profit is $40,200.

To calculate the sales in dollars to obtain the desired profit, we need to use the following formula:

Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio

Break-even point (dollars)= (454,200 + 40,200) / 0.64

Break-even point (dollars)= $772,500

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Rasek [7]

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

PV of Cash Flows :

($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)

$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

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7 0
3 years ago
Cheshire Corporation purchases a machine for​ $125,000. It has an estimated salvage value of​ $10,000 and is expected to produce
densk [106]

Answer: <u><em>Depreciation for the first year = 17825</em></u>

Explanation:

Given:

Machine purchased for $125,000

Salvage value of​ $10,000

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First year of​ operation, Output = 15500

First, we'll evaluate depreciation per unit over the entire life of the machine:

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Depreciation per unit = \frac{125000 - 10000}{100000}

<em>Depreciation per unit = 1.15</em>

Now, we'll compute the depreciation for the first year:

Depreciation for the first year = Depreciation per unit ×  Output (first year)

Depreciation for the first year = 1.15 × 15500

<u><em>Depreciation for the first year = 17825</em></u>

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3 years ago
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Answer:

The answer is c. $600,000

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