Concord Company sells merchandise on account for $3300 to Pharoah Company with credit terms of 1/10, n/30. Pharoah Company retur
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Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
BEP units: 42,017
BEP dollars: 2,100,850
unit cost at 100,000 units produced: 22.40 dollars
operating profit : 1,656,000
Explanation:
50 - 2.4 = 47.6 contirbution margin per unit
2,000,000/47.6 = 42.016,80 BEP units
BEP units x sales price = BEP dollars
42,017 x 50 = 2,100,850
(B)
fixed cosy/ units produced = fixed cost per unit
2,000,000/ 100,000 = 20 fixed cost per unit
fixed cost + variable cost = total cost
20 + 2.40 = 22.4
(C)
There are 40% units sold at the preferred customer at cost
So we sale at gain only 60% of the units:
100,000 units x 60% x 50 = 3,000,000
100,000 units x 40% x 22.40 = 896,000
Total revenue 3,896,000
Cost: 100,000 x 22.40 <u> (2,240,000) </u>
operating profit 1,656,000
Answer:
price for selling 3000 share right is $25060.87
Explanation:
Given data:
Total Amount raised= $4,400,000
Spreading rate = 6%
Subscription price = $20 per share
Number of share owned by company = 500,000
Per share cost = $45
Totals share own in the company = 3000
subscription price after deducting spreading rate
Now, Right share
Right price is calculated as
Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)
plugging all value in above relation
Right share = $36.65
single right value = 45- 36.65 = $8.35
Price for 3000 share right = 8.35 *3000 = $25060.86