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andreev551 [17]
3 years ago
12

Astair, Inc. reported sales of $6,000,000 for the month and incurred variable expenses totaling $4,600,000 and fixed expenses to

taling $940,000. The company has no beginning or ending inventories. A total of 70,000 units were produced and sold last month. How many units would the company have to sell to achieve a desired profit of $620,000
Business
1 answer:
tiny-mole [99]3 years ago
4 0

Answer:

Break-even point in units= 78,000

Explanation:

Giving the following information:

Fixed cost= $940,000

Total contribution margin= (6,000,000 - 4,600,000)= $1,400,000

Unitary contribution margin= 1,400,000 / 70,000= $20

Desired profit= $620,000

<u>To calculate the number of units to be sold, we need to use the following formula:</u>

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

Break-even point in units= (940,000 + 620,000) / 20

Break-even point in units= 78,000

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Answer:

The answer is "\$ 137,000"

Explanation:

Please find the complete question in the attached file.

Commercial sector contribution margin

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Margin per unit of contribution = sales price – Unit cost variables

Margin of Contributions = Revenue Sales - Fixed expenses

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7 0
3 years ago
"In 2020, a customer buys a 3 3/4% U.S. Government bond maturing in 2029 at 104-16. The customer elects to amortize the bond pre
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Answer:

carrying value after 2 years = $967.64

Explanation:

the journal entry to record the purchase of  the bond:

Dr Investment in bonds 1,000

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Assuming a straight line amortization, the yearly amortization = $41.60 / 9 years = $4.62 per year

carrying value at moment of purchase = $958.40

carrying value after 1 year = $963.02

carrying value after 2 years = $967.64

8 0
2 years ago
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a
Tomtit [17]

Answer:

Answer is 12.64%. Therefore,

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.

Refer below for the explanation.

Explanation:

E - 4%= 0.5(3)(24%)2

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7 0
3 years ago
Read 2 more answers
(A) If variances are prorated at the end of the accounting period, an unfavorable direct materials price variance will, when pro
charle [14.2K]

Answer:

Both A and B are correct.

Explanation:

Variance analysis help the business to identify the deviation from their budgeted expenditures. The budget cost or volume is analyzed against the actual expenditure or production volume. Variance can be favorable or unfavorable. An unfavorable material price variance will increase the cost of finished goods.

5 0
3 years ago
Antique Brass Company has budgeted sales volume of 127 comma 000 units and budgeted production of 110 comma 000 ​units, while 30
olga55 [171]

Answer:

13,000 units

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7 0
3 years ago
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