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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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not-for-profit organization held the following investments: Investment Cost Fair value (beginning of year) Fair value (end of ye
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Answer:

$14,900

Explanation:

not-for-profit organization will report the investments at the fair value of the investments end of year, in the year-end statement of financial position.

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Stock A (100 shares)                                     $51

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Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells fo
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Answer: Price of stock at year end =$53

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Expected return=6% + 1.2 ( 16%-6%)

Expected return= 0.06 + 1.2 (10%)

Expected return=0.06+ 0.12

Expected return=0.18

Using the formulae Po= D1 / R-g  to find the growth rate

Where Po= current price of stock at $50

D1= Dividend at $6 at end of year

R = Expected return = 0.18

50= 6/ 0.18-g

50(0.18-g) =6

9-50g=6

50g=9-6

g= 3/50

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Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.

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