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emmasim [6.3K]
2 years ago
4

The Corner Market has fixed costs of $1,600, depreciation of $1,200, a tax rate of 35%, and a cost of capital of 12%. Variable c

osts represent 67% of sales. What minimum level of sales must the market obtain to avoid a net loss on its income statement?
Business
1 answer:
Inessa05 [86]2 years ago
5 0

Answer:

$8,484.85

Explanation:

Fixed costs = $1,600

Depreciation = $1,200

Tax rate = 35%

Cost of capital = 12%

Variable costs = 67% of sales

Desired sales = (Fixed cost + Depreciation) / Contribution ratio

Desired sales = ($1,600 + $1,200) / (1 - 67%)

Desired sales = $2,800 / 0.33

Desired sales = 8484.84848485

Desired sales = $8,484.85

The minimum level of sales that Corner Market must obtain to avoid a net loss on its income statement is $8,484.85.

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The Green Fiddle has current liabilities of $28,000, sales of $156,900, and cost of goods sold of $62,400. The current ratio is
olya-2409 [2.1K]

Answer: 83.53 days.

Explanation:

We would need to calculate the Current Assets as well as the Quick Assets.

Calculating the Current Assets we can use the Current ratio and Current Liabilities as follows,

Current Assets = Current Ratio * Current Liabilities

= 1.22 * 28,000

= $34,160

Then we calculate the Quick Assets which are essentially the most liquid assets being Cash and Cash Equivalents,

= Quick Ratio * Current Liabilities

= 0.71 * 28,000

= $19,880

Inventory will be Current Assets minus Quick Assets because Current Assets include all Current Assets whereas Quick Assets are Cash And Cash Equivalents Current Assets

= 34,160 - 19,880

= $14,280

We can then calculate the Inventory Turnover as,

= Cost of Goods sold / Inventory

= 62,400/14,280

= 4.36974789916 times.

Now we can finally calculate the days of Inventory by dividing the days in a year by the Turnover ratio. We will assume a 365 year.

= 365/4.36974789916

= 83.53 days.

It takes 83.53 days on average does it take to sell the inventory.

5 0
3 years ago
If the price of sugar (ps) falls by $5, how does this affect the equilibrium price?
Dennis_Churaev [7]

If the price of sugar falls it will affect the quantity supplied of the sugar. As it will lead to the decrease in the supplied quantity.

<h3>What causes a fall in the equilibrium price?</h3>

A decrease in equilibrium demand and an increase in equilibrium supply will lead to a drop in equilibrium price, but the effect on equilibrium quantity is unpredictable.

Prices will drop because producers are ready to accept a lower price and consumers now place less value on the product, regardless of the amount.

Reduced demand will cause the equilibrium price to fall and the supply to increase.

Thus, it leads to the decrease in supplied quantity.

For more details about fall in the equilibrium price, click here:

brainly.com/question/14480835

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3 0
1 year ago
TLC Credit, Inc. has $35.0 million in consumer loans with an average interest rate of 12.0%. The bank also has $30.0 million in
MissTica

Answer:

$460,000 decrease

Explanation:

The computation of TLC's estimated change in revenues next year is shown below:-

TLC's estimated change in revenues next year = ((Consumer loan × Interest rate) + (Home equity loan × Interest rate) + (Corporate securities × Interest rate)) - ((Increased consumer loan × Decrease rate) + (Increase equity loan × Interest rate) + (Corporate securities × (1 - decreased percentage) × average interest rate))

= (($35.0 million × 0.12) + ($30.0 million × 0.O8) + ($5.0 million × 0.06)) - (($40.0 million × 0.10) +($32.0 million × 0.065) + (5 million × (1 - 20%)  × 0.09))

=$6,900,000 - $6,440,000

= $460,000 decrease

Therefore for computing the TLC's estimated change in revenues next year we simply applied the above formula.

6 0
2 years ago
A survey question asking voters which political party they are affiliated with (democrat, republican, independent) would be cons
Oxana [17]
A survey question asking voters which political party they are affiliated with (democrat, republican, independent) would be considered mutually exclusive or nominal scale. This type of questions talk about labels or names, mainly used for labeling variables that don’t have any quantitative value. 
8 0
3 years ago
Manifold, Inc., is a multinational company with divisions around the world. Division X in the United States purchases a part fro
xeze [42]

Answer:

Transfer price would be $ 20 less profit part = $ 13

Explanation:

Is necessary to deduct the 35% of the price.

As there is no outside market for the component, and part is normally sold at price of $20, which includes profit.

Hence transfer price would be $ 20 less profit part = 13

3 0
3 years ago
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