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suter [353]
3 years ago
13

N Corp has a variable cost per unit of $1.20, and the lease payment on the production facility runs $4,200 per month. N Corp sel

ls the units at $4.60 and has depreciation equal to $225. What is the amount of units that N Corp needs in order to break-even
Business
1 answer:
zheka24 [161]3 years ago
6 0

Answer:

1,301 units.

Explanation:

With regards to the above, we know that break even level is

= ( FC + Depreciation ) / Contribution margin

FC = $4,200

Depreciation = $225

Contribution margin = P - V, where P = $4.60 , V = $1.20

Therefore,

Break even level = ($4,200 + $225) / $4.60 - $1.20

Break even level = $4,425 / $3.40

Break even level = 1,301 units

Hence, the amount of units N corp needs in order to break even is 1,301 units

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Jan. 1Purchased a small company and recorded goodwill of $177,000. Its useful life is indefinite. May 1Purchased for $144,000 a
stich3 [128]

Answer:

The Journal entries are as follows:

(i) On December 31,

No entry

(ii) On December 31,

Amortization expense A/c Dr. $16,000

           To Patents A/c                            $16,000

(To record the amortization expenses)

Workings:

Amortization expense:

= (Purchasing cost of patent ÷ Estimated useful life) × Time period

= ($144,000 ÷ 6) × (8/12)

= $24,000 × (8/12)

= $16,000

3 0
3 years ago
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year e
Andrew [12]

Answer:

A.Net income $5,155

Earning per share :-

Income from continuing operation 3.20

Income from discontinued operation 0.47

Net income 3.67

B. Comprehensive income $5,215

Explanation:

A. Preparation of statement of comprehensive income for 2021, including earnings per share disclosures

SCHEMBRI MANUFACTURING CORPORATION

Statement of Comprehensive Income

For the Year Ended December 31, 2021

($ in 000s)

Sales revenue $17,900

Cost of goods sold ($7,500)

Gross profit $10,400

Operating expenses:

Selling expenses ($1,430)

General and administrative expenses ($930)

Restructuring costs ($1,600)

Total operating expenses ($3,960)

Operating income $6,440

(10,400-3,960)

Other income (expenses):-

Loss on sale of investment $(350)

Interest expenses $(310)

Interest revenue $200

Other income (expenses) $(460)

Income from continue operation before income tax $5,980

(6,440-460)

Income tax expenses (25%*5,980) $1,495

Income from continuing operations $4,485

(5,980-1,495)

Discontinued operation :-

Income from operation of discontinued component (1,660-680) $980

Income tax expenses $(310)

Income from discontinued operation $670

(980-310)

Net income $5,155

(4,485+670)

Other comprehensive income (loss)

Unrealized gain from investment,net of tax [460*(1-25%)] $345

Loss from foreign currency translation , net of tax [380*(1-25%)] $(285)

Total other comprehensive income $60

(345-285)

Comprehensive income $5,215

(5,155+60)

Earning per share :-

Income from continuing operation 3.20

Income from discontinued operation 0.47

Net income 3.67

Workings for Earning per share

Weighted average share = 1,000,000+(800,000/2)

Weighted average share = 1,000000+400,000

Weighted average share = 1,400,000

Net income from continue operation = 4,485/1400 = 3.20

Net income from discontinued operation = 670/1400 = 0.47

2. Preparation of a separate statement of comprehensive income for 2021.

SCHEMBRI MANUFACTURING CORPORATION

Statement of comprehensive income

For the year ended December 31,2021

Net income $5,155

(4,485+670)

Other comprehensive income (loss)

Unrealized gain from investment,net of tax [460*(1-25%)] $345

Loss from foreign currency translation , net of tax [380*(1-25%)] $(285)

Total other comprehensive income $60

(345-285)

Comprehensive income $5,215

(5,155+60)

5 0
3 years ago
"The minimum acceptable price for a product that producer Sam is willing to receive is $15. The price he could get for the produ
mars1129 [50]

Answer:

Sam's producer surplus is $3

Explanation:

A producer surplus is the difference between the amount a producer is willing to sell a product for and the price of the product in the market that consumers are willing to pay if the consumer price is higher.

Mathematically, it is represented as; market price - willing price

= 18 - 15 = $3.

7 0
3 years ago
Rokhanna, Inc. issued $1,000 par value bonds with an 8% coupon. The bonds have 18 years to maturity. Market interest rates are 5
Zielflug [23.3K]

Answer:

Bond Price = $1294.65063 rounded off to $1294.65

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. Assuming the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.08 = 80

Total periods (n) = 18

r or YTM = 0.054 or 5.4%

The formula to calculate the price of the bonds today is attached.

Bond Price = 80 * [( 1 - (1+0.054)^-18) / 0.054]  + 1000 / (1+0.054)^18

Bond Price = $1294.65063 rounded off to $1294.65

8 0
2 years ago
If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following
PilotLPTM [1.2K]

Answer:

a. Is answered

b. The amount realized increases.

As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.

c. The amount realized decreases.

As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.

d. Amount realized increases.

As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.

e. Realized value increases to $10,000.

The seller accepted the stock so the fair value will be the amount considered for the realized value.

3 0
3 years ago
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