Answer:
selling price= $5
Explanation:
Giving the following information:
She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand.
<u>To calculate the break-even selling price, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
2,500= 7,500 / (selling price - 2)
2,500selling price - 5,000= 7,500
selling price= 12,500/2,500
selling price= $5
Answer:
1. The journal entry to recognize depreciation on machinery would include
= None of these choices are correct.
2. The journal entry to record the transfer fro work in process to finished goods would include a debit to
= Finished Goods.
Explanation:
a) The correct journal entry is a debt to Depreciation on Machinery and a credit to Accumulated Depreciation on Machinery. However, when the Depreciation is being transferred to Work in Process, the debit goes to Work in Process with the credit going to the Depreciation on Machinery account.
b) The corresponding credit entry is a credit to Work in Process.
Answer:
The unit sales to attain the company's monthly target profit of $19,000 is closest to 6,548
Explanation:
Units required to achieve a target sale must first cover the fixed cost (break even) then once the fixed costs are covered the extra units would meet the target profit.
<em>Units for Target Profit = (Fixed Cost + Target Profit)/Contribution per unit</em>
= ($ 429,490+ $19,000) / ($ 160.00 - $ 91.50)
= $ 448,490/ $68.50
= 6547.29927
= 6,548
Answer:
Limited Liability Partnership / Limited Liability Company.
Explanation:
- Limited Liability Partnership: A limited liability relationship is a company in which certain or all members have defined obligations, based on the law. Consequently, it can show collaboration and organizational features. Each partner in an LLP is not accountable or liable for any wrongdoing or incompetence of another party.
- Limited Liability Company: A limited liability company is a management structure whose proprietors are not personally responsible for the obligations or responsibilities of the business. Limited liability corporations are hybrid organizations that combine a company's features with that of a partnership or sole business entity.
Answer:
Margin of safety = 3190.922902 units rounded off to 3191 units
Explanation:
Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.
Margin of safety = Budgeted units - Break even number of units
First we need to calculate the break even in units. The formula for break even in units is,
Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)
Break even in units = 9376 / (6.74 - 2.33)
Break even in units = 2126.077098 rounded off to 2126 units
Margin of safety = 5317 - 2126.077098
Margin of safety = 3190.922902 units rounded off to 3191 units