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2 years ago

All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.

Business

1 answer:

Ivanshal [37]2 years ago

6 0

Answer and Explanation:

The computation is shown below:

Total fixed costs is

= depreciation + advertising + insurance

= 1224 + 153 + 1683

= $3060 per month

Now

Total variable cost per unit

= weed + direct labor + fuel

= 10 + 8 + 2

= $20/ per lawn

Now

Contribution margin ratio = (sales per unit - variable cost per unit) ÷ sales per unit

= ($50 - $20) ÷ 50

= 60%

Now

Breakeven sales is

= fixed costs ÷ contribution margin ratio

= $3,060 ÷ 60%

= $5100

And,

Breakeven sales units is

= breakeven sales ÷ sales per unit

= 5100 ÷ 50

= 102 lawns

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Assume the economy is operating at full employment. If the economy enters a sudden economic expansion, the quantity of money ava

eduard

Answer:

the qquantity of money available in the economy will increase because there will be more foreign investments plus now the economy will start exporting and will reduce its imports so the quantity of money will increase.

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3 years ago

Read 2 more answers

Net sales for the year were $325,000 and cost of goods sold was $240,500 for the companyâ€™s existing products. A new product is

marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

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3 years ago

Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by

Art [367]

Answer:

$80 million

Explanation:

We know that

Multiplier = (1) ÷ (1 - marginal propensity to consume)

= (1) ÷ (1 - 0.75)

= (1) ÷ (0.25)

= 4

Now the GDP would increase by

= Increase in Investment spending × multiplier effect

= $20 billion × 4

= $80 million increase

We simply multiplied the investment spending increase with the multiplier effect

4 0

3 years ago

Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An

Ahat [919]

Answer:

equivalent annual cost: 19,784.81

The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.

Explanation:

We calcualte the PMT of a 75,000 dollars equipment at 10%

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 75,000

time 5

rate 0.1

$75000 \div \frac{1-(1+0.1)^{-5} }{0.1} = C\\$

C $ 19,784.811

EPA fines: <u> </u><u>$ 18,500.00 </u>

differential: (1, 284.81)

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3 years ago

A firm incurs $35,000,000 of actual OH costs. It has a PDOH rate of $450 per machine hour and 100,000 machine hours were actuall

ella [17]

Answer:

c. Debit: Overhead Control $10,000,000

Credit: Cost of Goods Sold $10,000,000

Explanation:

The journal entry to close the overhead account is presented below:

Overhead Control A/c Dr $10,000,000

To Cost of Goods Sold A/c $10,000,000

(Being the overhead account is closed)

The computation is shown below:

= Applied overhead - actual overhead

where,

Applied overhead equal to

= $450 × 100,000 machine hours

= $45,000,000

And, the actual overhead is $35,000,000

So, the amount would be

= $45,000,000 - $35,000,000

= $10,000,000

Since the applied overhead is greater than the actual overhead, so we debited the overhead control account and credited the cost of goods sold account

5 0

3 years ago