Diversification is important and investing because

Newton Company currently produces and sells 7,000 units of a product that has a contribution margin of $5 per unit. The company

mart [117]

Answer:

selling price= $25

Explanation:

Giving the following information:

Fixed costs= $78,000

Unitary variable cost= $11

Desited profit= $90,000

Break-even point in units= 12,000

To calculate the selling price, we need to use the following formula:

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

12,000= (78,000 + 90,000) / (selling price - 11)

12,000*selling price - 132,000 = 168,000

12,000selling price = 300,000

selling price= $25

8 0

4 years ago

A property is generating $100,000 in income and has expenses of $25,000. The investor pays $3,000 toward mortgage principal each

Salsk061 [2.6K]

Answer:

$40,000

Explanation:

Calculation to determine the before-tax cash flow

Using this formula

Before-tax cash flow=Income-[Expense+(Debt service)]

Let plug in the formula

Before-tax cash flow=$100,000-[$25,000+($3,000 + $32,000)]

Before-tax cash flow=$100,000-($25,000+$35,000)

Before-tax cash flow=$100,000-$60,000

Before-tax cash flow=$40,000

Therefore the before-tax cash flow is $40,000

8 0

3 years ago

For long-lived assets that have been in use for more than one accounting period, Depreciation Expense on the ______ Accumulated

ddd [48]

For long-lived assets that have been in use for more than one accounting period, Depreciation Expense on the debit. Accumulated Depreciation on the credit.

Therefore, the entry that was made by the accountant, assets and stockholders' equity will be decreased.

Depreciation simple defined as the allocation of the cost of a long-lived, tangible asset over its useful life making an expense on the income statement that is matched against the revenue gotten by the use the asset.

The effect of recording depreciation expense on the accounting equation is that Total assets decrease and Total stockholders' equity decreases

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8 0

3 years ago

Read 2 more answers

Gross domestic product is calculated by summing up.

Scilla [17]

Answer:

Summing up all of the money spent by consumers, businesses, and government in a given period. It may also be calculated by adding up all of the money received by all the participants in the economy

3 0

3 years ago

6.) If your company has a large production-related task, such as assembling an airplane, what strategy could help you increase p

NeTakaya

6).Option A. Division of labor

Division of labor is defined as the allocation of various parts of a manufacturing process assigned to different people in order to increase the efficiency. Furthermore, distributing a job or task into many technical parts, among a single or few number of workers assigned to every part. In mass production division of labor plays a significant role. Division of labor is simply the division of tasks in , e.g, in a manufacturing plant. Each and every worker perform a certain duty. Which in results boosts efficiency and productivity.

7). Option B. A paper cutting machine

There are two types of costs namely variable costs and fixed costs. Fixed costs are the costs which are fixed an cannot be decreased or cut down in the short term. Fixed costs usually includes bill payments, physical structure of a company, rent, and machinery (in this case paper cutting machine). Variable costs are the costs which can be increased or decreased in the short term for example, labor and inputs. In case if a company is in financial loss situation or poor financial circumstances, the company can reduced their staff (labor) but the fixed costs cannot be cut down such as rent of the building or bills and most importantly machinery.

8). Option C. Form Utility

Form utility refers to the certain product or service that a company offers to its potential customers or clients. The value seen by a consumer or customer in the finished product is called Form utilities. The company emphasize on the increase in form utility by making of a product available for the final consumption on a way so that it is more beneficial for the customer in this form, rather than the materials in the raw form used to produce it.

9). Option B. Depreciation

Depreciation is defined as the monetary value of an asset reduced or decreased over the time due to its use, its wear and tear, and its obsolescence. Such as Machinery ( cars , machines), equipment (electronic devices, cell phones), currency. For example, when a new model of a car is launched the previous model loses part of it value or this could happen due to the use (wear and tear) or deterioration.

10). Option B. Paint

The cost f goods and services are the costs that must be included into the account of the costs of giving the services or making the products. In this case paint is the direct cost of goods and services for the company that paints houses. On the other hand flyers falls in the promotion costs. Whereas the van and the fuel used for commute are variable costs.

11). Option A. Fewer workers will be needed

In this case the increase in the productivity means increase in the production per worker. Like if the productivity increases definitely workers will become more productive which results in the production of more goods produced per worker and if the demand is in elastic or not very elastic (as in this case). Which means that the demand is not sensitive to the reduced or falling prices of goods then the definitely less or fewer workers will be needed to produce and supply the same amount of product.

12). Option B. Labor

The Law of diminishing returns could be applied to the three factors of production i.e. Land, Labor, and Capital, but it is commonly used to analyze the amount of production that will be attained by the adding additional unit of labor. Generally an additional unit of labor tend to produce diminishing levels of output for example, a worker will be able to produce 30 units per day, while on the other hand extra worker will produce only 27 units per day.

13). Option B. Providing a delivery service

Providing a delivery service is a way to increase possession utility for refrigerator. By making an increase in the possession in the way to ensure that you have the refrigerator or any other product that you are purchasing. Possession utility is the value which customers gets while buying a product. Possession is referred as the physical access of a product what a customer has purchased.

14). Option B. A company that makes many sales

Economies of scale is referred as where large organizations have the advantage over the small organizations. Which means the larger the organization selling and producing more products, the lower the cost compared to the small organizations. So an organization which makes larger sales has the cost advantages that the company will exploit by expanding their production size.

15). Option D. By the amount a consumer is willing to pay for it

The value of a product is calculated by the ratio of its quality to its price and Prices of products are determined by supply and demand. The greater the value of product, the better will be its position among competitors. Thus either increasing the quality or reducing the price of certain product will increase the chance that the consumer will select that product than the competing product. So the value of the product is determined by the amount a consumer is willing to pay for it.

4 0

4 years ago