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Molodets [167]
3 years ago
5

Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The compan

y’s monthly fixed expense is $31,750. Required: 1. Calculate the unit sales needed to attain a target profit of $8,450. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,700.
Business
1 answer:
Dafna11 [192]3 years ago
3 0

Answer:

Results are below.

Explanation:

Giving the following information:

Fixed cost= $31,750

Unitary contribution margin= 134 - 67= $67

<u></u>

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

<u></u>

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

Desired profit= $8,450

Break-even point in units= (31,750 + 8,450) / 67

Break-even point in units= 600

<u>Now, the desired profit is $9,700; we need to use the following formula:</u>

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (31,750 + 9,700) / (67/134)

Break-even point (dollars)= 41,450 / 0.5

Break-even point (dollars)= $82,900

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A sophisticated  sales test might involve manipulating an advertising variable like schedule or copy through cable systems, and observing the affects on purchasing at local supermarkets.

What is advertising variable?

  • Although advertising expenditures can change greatly, they are not regarded as variable costs.
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Why is marketing considered a variable cost?

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Which of the following is the term used to describe the institutional arbitrage of various securities, including stocks and opti
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8 0
3 years ago
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges
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Answer:

77%

Explanation:

Total debt to total capital ratio = Total liabilities / Total assets

Total debt to total capital ratio = $53,900 / $70,000

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3 years ago
Crusher Company has provided the following data for maintenance cost:
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Answer:

Total Fixed Cost: $13,020

Explanation:

Fixed cost is calculated using high low method.

High low method seeks to find variable cost per hour / unit by dividing the difference of cost (total cost at two levels) with difference of activity level. Than variable cost is reduced from total cost to identify the fixed cost. Below is the calculation:

Current year cost: $ 37,850        Current year machine hours: 19,100

Prior year cost:      $ 33,300        Prior year machine hours:     15,600

Variable cost per machine hour = <u>Current year cost - Prior year cost</u>

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Variable cost per machine hour: <u>37,850 - 33,300</u> = $1.30 per machine hour

                                                       19,100 - 15,600

Variable cost current year: ($1.30 * 19,100) = $24,830

Variable cost prior year: ($1.30 * 15,600) = $20,280

Fixed cost: Total cost - variable cost

Fixed cost current year: 37,850 - 24,830 = $13,020

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3 years ago
When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to?
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When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.

This is further explained below.

<h3>What is a firm?</h3>

Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.

In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.

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7 0
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