All categories

3 years ago

Porter Corporation has fixed costs of $660,000, variable costs of $24 per unit, and a contribution

Business

1 answer:

Vitek1552 [10]3 years ago

5 0

Answer and Explanation:

The computation is shown below:

a. The unit sale price is

But before that the variable cost ratio is

= 100% - 40%

= 60%

Now the unit sale price i

= $24 × 100% ÷ 60%

= $40

Now the contribution margin per unit is

= $40 - $24

= $16

b. the sales volume in units is

= Fixed cost + operating income ÷ contribution margin per unit

= ($660,000 + $300,000) ÷ $16

= 60,000 units

c. Sales volume in dollars is

= Fixed cost + operating income ÷ contribution margin ratio

= ($660,000 + $300,000) ÷ 40%

= $2,400,000

You might be interested in

(1 point) Why does the journalist think Enron's stock is overvalued?

antiseptic1488 [7]

Hi, you've asked an incomplete question. However, I provided some explanation.

Explanation:

Note, in the stock/asset trading market, the term 'stock/asset is overvalued' is used when the worth of a particular asset or stock is overestimated; in other words having a stock price that is too high considering the projects/company's usefulness.

Hence, the journalist's comments may have been based on this observation.

6 0

3 years ago

Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a pr

Ymorist [56]

Answer:

Long term liability

Explanation:

Long term liability is defined as the amount of money a business owes that is due above a year. It is liabilities that do not affect the current liquidity of the business and its ability to do business.

In this scenario Chestelle Corporation has borrowed a large amount of money that is due in 4 years. It is due in over a year so it is a long term liability.

Long term liabilities are usually used to purchase capital assets or to make long term investment

3 0

4 years ago

Read 2 more answers

Major Manuscripts, Inc.

Lisa [10]

Answer:

Projected total assets = $10,318 

Projected retained earnings = $4,675.30 

Additional new debt required = $537.70

Explanation:

external financing needed = EFN = [(total assets/total sales) x ($ Δ sales)] - [(total current liabilities/total sales) x ($ Δ sales)] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]

total assets = $9,380, projected total assets = $9,380 x 1.1 = $10,318

total sales = $7,800

$ Δ sales = $780

current liabilities = $1,550

profit margin = net income / sales = $410 / $7,800 = 0.052564

forecasted sales = $7,800 x 1.1 = $8,580

dividends payout ratio = dividends / net income = $187 / $410 = 0.4561

EFN = [($9,380/$7,800) x ($780)] - [($1,550/$7,800) x ($780)] - [0.052564 x $8,580 x (1 - 0.4561)]

EFN = $938 - $155 - $245.30 = $537.70

projected retained earnings = current retained earnings - projected net income - projected dividends = $4,430 + $451 - $205.70 = $4,675.30

6 0

4 years ago

Mr. Rodriguez is caring his suitcase to his room. He sees a sign indicating that elevators are ahead. Now, he knows where he is

DiKsa [7]

Answer:poop

Explanation:

4 0

3 years ago

Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. Th

diamong [38]

Answer:

No, as the net present value comes in negative

Explanation:

As we know that

Net present value = Present value of cash inflows - Initial investment

where,

Present value os $163,000

And, the initial investment is $180,000

Now placing these values to the above formula

So, the net present value is

= $163,000 - $180,000

= -$17,000

Therefore the company should not accept the project as net present value is in negative that is -$17,000

6 0

3 years ago