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SashulF [63]
3 years ago
11

Boise Timber co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe

d costs are $6,000,000, but 25 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4. How many units does the firm need to sell to reach the cash break-even point
Business
1 answer:
stellarik [79]3 years ago
8 0

Answer: 1,125,000

Explanation:

Break even point simply means when the total cost and the total revenue are equal.

Firstly, we need to calculate the cash related fixed cost for Boise Timber Co. This will be:

= Total fixed cost - Depreciation

= $6,000,000 - (25% × $6,000,000)

= $6,000,000 - (0.25 × $6,000,000)

= $6,000,000 - $1,500,000

= $4,500,000

The cash break-even point will be:

= $4,500,000/$4

= 1,125,000

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Answer:

The total cost per unit using the weighted average method would be:

$15,97  

Explanation:

                Materials   Conversion Costs  

Begining  $ 14,000         $ 8,000  

APRIL          $ 72,000        $ 80,000  

TOTAL          $ 86,000 $ 88,000  

Units               8,000   8,000  

                       100% 50%  

WIP                4,000   2,000  

TOTAL              12,000   10,000  

USD/Unit          7,17              8,80   $15,97  

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3 years ago
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Answer:

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Explanation:

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Don kosec, vp of business services for time warner cable in northeast ohio says that their goal is to increase their sales in th
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A parent company exchanges 30,000 shares of its $1 par value common stock, with a market value of $10/share, for all of the shar
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Common Stock $90,000 (debit)

Retained Earnings $135,000 (debit)

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