All categories

3 years ago

Break-Even Point

Business

1 answer:

11111nata11111 [884]3 years ago

5 0

Answer:

The right answer is:

(a) 5916 units

(b) 5046 units

Explanation:

Given:

Sales,

= $59

Variable cost,

= $30

Fixed cost,

= $171,564

Increased sale,

= $64

Now,

(a)

Contribution margin will be:

= $Sales - Variable \ cost$

= $59-30$

= $29 \ per \ unit$ ($)

hence,

Breakeven will be:

= $\frac{Fixed \ cost}{Contribution \ margin}$

= $\frac{171564}{29}$

= $5916 \ units$

(b)

Contribution margin will be:

= $Sales-Variable \ cost$

= $64-30$

= $34 \ per \ unit$ ($)

hence,

Breakeven will be:

= $\frac{Fixed \ cost}{Contribution \ margin}$

= $\frac{171564}{34}$

= $5046 \ units$

You might be interested in

Jasmine is the director of marketing for a chain of clothing stores. She's been given a set budget and needs to drive as many po

klio [65]

Answer:

Strategy she should use is "Maximize Clicks"

Explanation:

Jasmine should use Maximize clicks automated bidding strategy as to drive her clients to her website so that maximum people can visit her website in a set budget and choose her clothing products.

3 0

3 years ago

Journalize the following transactions for Reed Company. Assume a perpetual inventory system. Also, assume a constant gross profi

igor_vitrenko [27]

Answer:

The Journal entries are as follows:

(i) On April 6,

Cash A/c Dr. $5,000

To Sales $5,000

(To record the cash sales )

(ii) On April 6,

Cost of goods sold A/c Dr. $3,000

To merchandise inventory $3,000

(To record the cost of goods sold)

(iii) On April 12,

Sales return and Allowances A/c Dr. $630

To cash $630

(To record the sales return)

(iv) On April 12,

merchandise inventory A/c[(630 ÷ 5,000) × 3,000] Dr. $378

To cost of goods sold $378

(To record the cost of sales return and allowances

4 0

3 years ago

Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a $530,000 par value. The bonds pay interest on June 30 and Decem

Ket [755]

Answer:

1. Total interest rate is $166,790

2. Refer to the attached file for the straight-line amortization table for the bonds' life.

To record interest rate paid in 30th June 2018:

Dr Interest expenses 16,679

Dr Premium on bond payable 4,521

Cr Cash 21,200

To record interest rate paid in 31st Dec 2018:

Dr Interest expenses 16,679

Dr Premium on bond payable 4,521

Cr Cash 21,200

Explanation:

Total interest rate as followed : Interest payment - Premium on bond payable = 530,000 x 8% /2 x 10 - (575,210 - 530,000) =166,790.

6 0

3 years ago

The auditors' count of the client's cash should be coordinated to coincide with the

Savatey [412]

The auditor's count of the client's cash should be coordinated to coincide with the ''count of investment securities'' since both mean counting/managing money.

6 0

3 years ago

Which of the following would be considered an assurance engagement?

yarga [219]

Answer: Option (E)

Explanation:

Assurance engagement tends to refer or mean that an engagement, under which an individual or practitioner tends to express a conclusion, that is designed in order to enhance the level or degree of confidence of user or the intended user, apart from the responsible individual about the result or outcome of measurement or evaluation of the subject matter against the stated criteria.

5 0

3 years ago