What’s the answer????

Finch Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $43. V

ioda

Answer:

a) Break even in units= 12, 684 units; Break even in dollars= 547,727.27

b) Break even in units= 19,052 units; Break even in dollars= $822,727.27

c) The salaries to pay to get a profit of $121,600 is $196,400

Explanation:

Solution to A) Compute the Contribution Margin per unit and use it to calculate the break -even point

1. Per unit Contribution Margin is calculated as the

Price- Variable Cost (Manufacturing and Selling)

=$43- $17-$7

= $19

Based on this calculation, then calculate the Contribution Margin Ratio

= Contribution/Sales

= $19/$43 = 0.44 or 44%

2. Next step, calculate total fixed cost as follows:

Total fixed cost = Manufacturing + Administrative Fixed costs)

= $160,000 + $81,000

= $241,000

Now, calculate the Break Even in Units =

The total fixed cost/ Contribution Margin

= $241,000/$19

= 12, 684 units

Now, calculate the Break even in dollars=

Total fixed cost/ Contribution margin ratio

= $241,000/0.44

= $547,727.27

Solution B: Using the Contribution per unit Contribution Margin, determine Sales level in Units and dollars required for a profit of $121,600

What is the desired profit $121,600

The total fixed cost <u> $241,000</u>

Total amount is $362,000

Therefore, calculate the Break Even in Units using the new total fixed cost

= $362,000/$19= 19,052 units

Also, Calculate the Break even in dollars

= $362,000/ 0.44= $822,727.27

Solution C: Calculate salaries for salespeople to sell 21,500 units and make a profit of $121,600

We can start with an equation assumption as follows:

Let the required fixed cost be as follows:

The total fixed cost in solution 1 + X( the additional fixed cost required).

Therefore, the target profit

= Target Profit= Units to sell x (price- variable manufacturing cost) - the total fixed cost

= $121,600= 21,500 units x (43-17) - $241,000+ x

= $121,600= (21,500 x 26)- (241,000+ x)

=$121,600= 559,000- 241,000 -x

x= 559,000-241,000-121,600

x= $196,400

The salaries to pay to get a profit of $121,600 is $196,400

7 0

3 years ago

As a manager or owner, what insight can accounting information about accounts receivable and bad debts provide you to help make

pychu [463]

The information that a manager or an owner can get by having an insight into the accounting information about accounts receivable and bad debts is how much amount of goods are sold to the consumers on credit and how much is the amount that the consumers are not able to pay for the goods that they had bought.

It will also help to decide how much of a provision is required to be kept in advance for bad debts. If a company has a high amount of accounts receivable but a small number of bad debts then it shows that the company is efficient in doing the credit sales and gives goods on credit only to those consumers who can give the debt back.

The manager or the owner can decide that they can do more credit sales as there is less chance of it becoming worse. If a company has a high amount of accounts receivable and a high amount of bad debts then it shows that the company is inefficient in doing the credit sales and gives goods on credit to consumers without a surety of getting the debt back.

The manager or the owner can decide that they cannot do more credit sales as there is more chance of it becoming worse.

Learn more about accounting information here brainly.com/question/26261281

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6 0

1 year ago

A client is interested in becoming a limited partner of a DPP (direct participation program). He signs a subscription agreement

maw [93]

The Correct answer is B

7 0

3 years ago

3. Nghiep gave his mother half of his weekly earnings, and then spent half of what was left on a new shirt. He then had $32. Wha

wel

Answer:

$128

Explanation:

Given: Nghiep gave half of his weekly salary to his mother.

Spent remaining half on a new shirt.

Finally he is left with $32

Lets assume Nghiep´s weekly earning be "x".

As given, Nghiep gave his mother half of weekly earning.

∴ Remaining earning= $x- \frac{x}{2}$

Taking LCD as 2

⇒ Remaining earning= $\frac{2x-x}{2} = \frac{x}{2}$

Hence, remaining salary giving half earning to his mother is $\frac{x}{2}$

Now, as given Nghiep spent half of what was left on a new shirt.

∴ Amount spent on shirt= $\frac{x}{2} \times \frac{1}{2} = \frac{x}{4}$

Next, finding the amount left with Nghiep after spending on shirt.

⇒ Amount left after spending on shirt= $\frac{x}{2} - \frac{x}{4}$

taking LCD as 4

⇒ Amount left after spending on shirt= $\frac{2x-x}{4} = \frac{x}{4}$

As given, Nghiep left with $32 after spending on shirt.

∴ We can form an equation for amount left with Nghiep after spending on shirt.

⇒ $\frac{x}{4} = 32$

Now, solving it to find the weekly earning of Nghiep.

⇒ $\frac{x}{4} = 32$

Multiplying both side by 4.

⇒ $x= 32\times 4$

∴ $x= \$ 128$

Hence, Nghiep´s weekly earning is $128.

6 0

4 years ago

Ten years ago a corporation purchased a building for $160,000. at that time, the corporation felt that the building was worth

Alla [95]

<span>The building should be recorded in the corporation's account records as $405,000 because of it's assessed value for property tax purposes. The worth of the building ten years ago as well as the amount the corporation paid for it at that time no longer matters, and the current market value of the building also does not matter if the building is not being sold.</span>

8 0

3 years ago