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2 answers:
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Answer:
D) $26,000
Explanation:
The computation of the acquisition value associated with the non-controlling interest is shown below:
= Cash ÷ acquiring percentage × non- owning percentage
= $234,000 ÷ 0.90 × 0.10
= $26,000
It is computed by simply applied the above formula so that the acquisition value in case of non controlling interest could arrive and the same is to be considered
Answer:
BEP 2016: $ 1,700,000
BEP 2017:
under proposition a)
contribution margin:
(2,310,000 * 1.25 - 924,000) / 2,310,000 * 1.25 = 1,500,000
under porposition b)
fixed cost decrease by: 197,000 - 40,000 = 157,000
contribution margin decrease by 5% to 55%
(1,020,000 - 157,000) / (0.6 - 0.05) = 1,569,090.90
under proposition c)
We distrubute the same cost but now 50% is fixed and 50% variable:
1,944,000 x 50% = 927,000
contribution margin:
2,310,000 - 927,000 = 1,383,000
ratio: 1,383,000 / 2,310,000 = 0.5987
BEP
927,000 / 0.5987 = 1,548,354.77
Explanation:
Break even point formula:
Where:
Sales: 2,310,000
Variable cost: 924,000
Contribution: 2,310,000 - 924,000 = 1,386,000
Contribution ratio: 1,386,000 / 2,310,000 = 0.6
Fixed cost: 1,020,000
BEP 2016
1,020,000 / 0.60 = 1,700,000