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vlabodo [156]
3 years ago
7

Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The compan

y’s monthly fixed expense is $31,600. Required: 1. Calculate the unit sales needed to attain a target profit of $8,300. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $10,000. (Round your intermediate calculations to the nearest whole number.)
Business
1 answer:
Fudgin [204]3 years ago
6 0

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $140

Unitary variable cost= $70

Fixed cost= $31,600

<u>To calculate the number of units to be sold to obtain a profit of $8,300, we need to use the following formula:</u>

<u></u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (31,600 + 8,300) / (140 - 70)

Break-even point in units= 570

<u>Now, the dollar sales for $10,000 profit:</u>

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

Break-even point (dollars)=  (31,600 + 10,000) / (70/140)

Break-even point (dollars)= $83,200

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If revenue is less than operating expenses, the business would have a _____ cash flow. break-even negative
Aneli [31]

The correct answer is negative cash flow.

When a company has a situation where their revenue is less than their operating expenses they have a negative cash flow. This is normally indicative that a company is not doing well and may need to make changes in order to become profitable.

3 0
3 years ago
Read 2 more answers
A Treasury bill with 119 days to maturity is quoted at 97.630. What are the bank discount yield, the bond equivalent yield, and
Dovator [93]

Answer:

discount yield=7.17%

bond equivalent yield=7.34%

effective annual yield =7.64%

Explanation:

Discount yield =discount /face value*360/t

where t is the number of days to maturity

discount =face value -issue price

discount=100-97.63

discount=2.37

discount yield =2.37/100*360/119

discount yield=7.17%

bond equivalent yield=(1+periodic yield)^360/t-1

periodic yield =discount/face value=2.37/100=2.37%

bond equivalent yield =(1+2.37%)^(360/119)-1

bond equivalent yield=7.34%

effective annual yield=(1+HPY)^365/t-1

Holding period yield (HPY)=discount/price=2.37/97.63

HPY=2.43%

effective annual yield=(1+2.43%)^(365/119)-1

effective annual yield =7.64%

6 0
3 years ago
Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e
anygoal [31]

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier

Substituting the values from the question in the DuPont identity we get,

0.1964 = 0.051 * 2.3 * Equity Multiplier

Equity Multiplier = \frac{0.1964}{0.051*2.3}

Equity Multiplier = 1.674339301&#10;

Equity Multiplier = \frac{Total Assets }{Equity}

So,

\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}

Substituting the value of equity multiplier in the formula above we get,

\frac{Equity}{Total Assets} = 0.597250509

Now,

\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1

So,

\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}

\frac{Debt }{Total Assets} = 1 - 0.597250509&#10;

\frac{Debt }{Total Assets} = 0.402749491&#10;

Now that we have the proportions of debt and equity to total assets, we can  find the Debt Equity (D/E) ratio as follows:

\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}

Substituting the values we get,

\frac{D}{E} = \frac{0.402749491&#10;}{0.597250509&#10;}

\frac{D}{E} = 0.674339301&#10;

3 0
3 years ago
A(n) ______ is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.
Tema [17]

Every individual or business wants to make profit this is done by providing goods and services that satisfy people's needs and wants.

<h3>What is a business?</h3>

A business is an organization that aims at making a profit by providing goods and services that are desired by individuals also known as customers.

Business meets a need and gets profit in return.

Therefore, A Business is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.

learn more on business here

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3 0
2 years ago
EA16.
Artist 52 [7]

Answer:

Explanation:

The journal entry is shown below:

Work in process A/c - shaping department Dr $35,000

Work in process A/c - packaging department Dr $25,000

         To Manufacturing overhead A/c $60,000

(Being apply overhead to the manufacturing departments is recorded)

The computation is shown below:

For shaping department

= 3,500 machine hours × $10 per machine hour

= $35,000

For Packaging department

= 2,500 machine hours × $10 per machine hour

= $25,000

5 0
3 years ago
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