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Margarita [4]
2 years ago
9

Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $1

5 per unit. The company’s monthly fixed expense is $12,000. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Business
1 answer:
Eduardwww [97]2 years ago
7 0

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $19

Unitary variable cost= $15

Fixed costs= $12,000

<u>To calculate the break-even point in units and dollars, we need to use the following formulas:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 12,000 / 4

Break-even point in units= 3,000

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

Break-even point (dollars)= 12,000 / (4/19)

Break-even point (dollars)= $57,000

<u>Now, the fixed costs are $12,600:</u>

Break-even point in units= 12,600 / 4

Break-even point in units= 3,150

Break-even point (dollars)= 12,600 / (4/19)

Break-even point (dollars)= $59,850

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Marilyn County operates on a calendar year basis. It uses a Capital Projects Fund to account for major capital projects and a De
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Answer:

Marilyn County

1. Journal Entries:

1. January 1, 2013,

Debit Capital Projects Fund $1,000,000

Credit General Obligation Bonds Payable $1,000,000

To record the issuance of bonds, payable in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2013, with interest of 4 percent per annum paid on the outstanding debt.

2. May 1,

Debit Capital Projects Fund $20,000

Credit General Fund $20,000

To fund the additional project costs.

3. July 1

Debit Construction of Community Center $1,020,000

Credit Capital Projects Fund $1,020,000.

To record the payment to the contractors for completed construction of Community Center with estimated 20 years useful life.

4. September 30, 2013

Debit Debt Service Fund $70,000

Credit General Fund $70,000

To transfer funds for debt service.

5. October 1:

Debit Bonds Payable $50,000

Debit Interest on Bonds Expense $20,000

Credit Debt Service Fund $70,000

To record the payment of the debt service with semi-annual interest.

2. Governmental activities column of the government- wide financial statements:

Capital assets $1,020,000

Reduction of Liabilities $950,000 ($1,000,000 - $50,000)

Payment of debt service and interest $70,000

3. December 31, 2013, government-wide statement of net position

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Related debt                              (950,000)

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4. December 31, 2014, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt                              (850,000)

Invested capital assets, net      $170,000

Explanation:

a) Data and Analysis:

1. January 1, 2013, Capital Projects Fund $1,000,000 General Obligation Bonds Payable $1,000,000

2. May 1, Capital Projects Fund $20,000 General Fund $20,000

3. July 1 Construction Contract $1,020,000 Capital Projects Fund $1,020,000.

4. September 30, 2013 Debt Service Fund $70,000 General Fund $70,000  

5. October 1, Bonds Payable $50,000 Interest on Bonds Expense $20,000 ($1,000,000 * 4% * 6/12) Debt Service Fund $70,000

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3 years ago
Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved
valentinak56 [21]

Answer:

False

Explanation:

Missing question: <em>The ability to declare bankruptcy increased the disagreement value of the city during negotiation with the unions</em>

Alternatives available to an agreement determine the terms of an agreement. If bankruptcy is been declared in a situation where the cities can manipulate  and evade much of their pension obligations owed to unions, such scenarios gives the city a much better alternative, if the favorable agreement with the city's unions and retirees emerge.

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