Answer:
c. $6,200 loss
Explanation:
<u>Calculating the gain or loss Geary should record:</u>
Gain or loss = Fair value of residual value - Value of leased equipment
Gain or loss = $9,800 - $16,000
Loss = $6,200
So, the loss that Geary should record is $6,200.
Answer:
232, 255 dollar sales FPCC need to have at manufacturer's prices before it starts making a profit.
Explanation
Lets start with calculation of Variable cost that includes following
Cloth per shirt = 2.2
Button per shirt = 0,05
Thread per shirt = 0.05
Direct labor per shirt = 1.33
Shipping per shirt = 0.27
Adding all these above cost we get per unit varibale cost = 3.9
Manufacturing sales price = 15/140*100 = 10.7
Now calculating sales = 10.7-3.9 = 6.8
Now calculating break even in order to determine point of profitable
Break even = FV/ contribution per unit = 147,600/ 6.8 = 21,706 units
Sales in dollars = 21,706 * 10.7 =232, 255 aprox
Answer:
Explanation:
Cash Payment to customers: $450,000 x contract rate of 9% x 1/2 = $20,250
Amortization of the premium: $11,795/6 periods = $1,966
Bond interest Expense: $20,250 - $1966 = $18,284
Answer:
a) Average Cost per unit = $63 / unit
b) Cost per unit below break point = $ 70 / unit
c) Marginal Cost for 650th Unit = $35 / unit
Explanation:
a) To calculate average cost per unit, we simply divide the total cost for the month $31500 by the total units shipped this month 500 units.
Average cost p.u = 31500 / 500 = $63 / unit
b) The breaking point is at 400 units. The cost for initial 400 units is twice that of the additional units after 400. So, we can say that in this case of 500 units, it takes 2x cost to test initial 400 units while x to test the later 100 units.
Thus,
- 31500 = 400 * 2x + 100 * x
So, plugging 35 in place of x,
the cost per unit below cost break = 2 * 35 = $70 / unit
c) Marginal cost of 650th unit is simply x that is $35 / unit