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shtirl [24]
3 years ago
11

Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $7,500. Assuming it

s selling price is $36.50 per unit and its variable costs per unit are $24, how many units must be sold to achieve its target given that total fixed costs are $60,000? Multiple Choice
a. 2,188
b. 1.439
c. 4,200
d. 1800
Business
1 answer:
alex41 [277]3 years ago
3 0

Answer:

c. 4,200 Units

Explanation:

The computation of units to be sold is shown below:-

For computing the units to be sold first we need to find out the Contribution Margin Per Unit and  Required Contribution Margin which is shown below:-

Contribution Margin Per Unit = Selling Price Per Unit - Variable Cost Per Unit

= $36.50 - $24

= $12.50

Required Contribution Margin = Fixed Cost + Required Profit ÷ Loss

= $60,000 - $7,500

= $52,500

Units to be sold to achieve the target = Required Contribution Margin ÷ Contribution Margin Per Unit

= $52,500 ÷ $12.50

= 4,200 Units

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3 years ago
Normally, a person with a high level of education makes more money than a person without an education.
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Answer: true

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Campbell Home Maintenance Company earned operating income of $6,821,100 on operating assets of $58,300,000 during Year 2. The Tr
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Answer:

1.

Return on investment = operating income divided by operating Assets

A. Return on investment on Campbell business = $6,821,100 / $58,300,000 x 100%

= 11.7%

B. Return on investment on Tree cutting business = $1,174,670 / $6,790,000 x 100%

= 17.3%

C. Return on new investment on tree cutting business :

i. Only new investment = $434,000 / $2,170,000 x 100%

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ii. Total new investment = $1,608,670 / $8,960,000

= 18%

2.

Residual income = controllable Margin - (required return % x average operating assets)

Residual income on Campbell business = $6,821,100 - (9.70% x $58,300,000)

= $1,166,000

B. Residual income on Tree cutting business = $1,174,670 - (9.70% x $6,790,000)

= $516,040

C. Residual income on tree cutting business :

i. Only new investment = $434,000 - (9.70% x $2,170,000)

= $223,510

ii. Total new investment = $1,608,670 - (9.70% x $8,960,000)

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6 0
3 years ago
Which factors may influence a company's choice of inventory cost flow assumption?
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inventory cost flow assumption influence by tax implications of choice ,financial statement effect, actual physical flow of inventory.

<h3>What Is Cost Flow?</h3>

The way or channel that costs move through a company is referred to as the flow of costs. The flow of costs typically pertains to manufacturing businesses where accountants are required to quantify expenses associated with raw materials, work in progress, finished goods inventory, and cost of goods sold.

Four commonly acknowledged methods—specific cost, average cost, first-in, first-out (FIFO), and last-in, first-out—are available for allocating expenses to ending inventory and cost of goods sold (LIFO).

To know more about Cost Flow visit:

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1 year ago
The following data is available for BOX Corporation at December 31, 2017: Common stock, par $10 (authorized 30,000 shares) $270,
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Answer:

26,920

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At $10 par value,

Number of authorized shares = 30,000 (given)

Number of issued shares = $270,000/$10 = 27,000 shares

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Since Treasury shares do not form part of outstanding shares, they will be deducted from issued shares to obtain outstanding shares

Therefore, number of outstanding shares

= 27,000 - 80

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3 years ago
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