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SashulF [63]
2 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]2 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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siniylev [52]

Answer:

Budget expenditure part

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22311 Office expenses 58,000

22121 Rental charges 30,000

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5 0
2 years ago
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m
STALIN [3.7K]

Answer:

Acton Corporation

The overhead for the year was:

$1,208 overapplied

Explanation:

a) Data and Calculations:

Estimated manufacturing overhead $361,260

Estimated machine-hours 2,700

Predetermined overhead rate = $361,260/2,700 = $13.38

Actual manufacturing overhead $354,700

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Overhead applied = Actual machine hours * Predetermined overhead rate

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= $355,908

Overapplied overhead = Overhead applied minus Actual overhead

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= $1,208

6 0
3 years ago
In 2016, the population of the United States was approximately 325 million people, with an annual growth rate of approximately 0
Tpy6a [65]

Answer:

The population would be 1318 million

Explanation:

Acording to the formula

<h2>Nt =Noe^{T * r}</h2>

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No =  initial population size.

e= number e

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r = rate

<h2>Nt =325 x ( e^{200 * 0.007})</h2><h2></h2><h2>Nt =  1318 millions</h2>

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3 years ago
Nescafe coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different co
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The answer is dual adaption marketing strategy. It is the adaptation of both the good and the communications to a local marketplace. For instance, when a business modifies their marketing communications for a local market, the method is recognized as communications adaptation.
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3 years ago
The choice of producing the component internally or purchasing the component externally is known as the
larisa86 [58]

The choice of producing the component internally or purchasing the component externally is known as the make or buy decision.

A manufacturing or purchasing decision is the act of choosing whether to manufacture the product in-house or from an external supplier.

Make-or-buy decision is the act of choosing whether to manufacture the product in-house or from an external supplier. Similar to outsourcing decisions, making or buying decisions require comparing the costs and benefits of producing in-house and buying elsewhere.

ABC Manufacturing Company has a contract to supply 6,000 units of MVP. This also requires his 6,000 units of MVP essential components. The estimated cost of manufacturing these 6,000 units of the required components is approximately $234,000.

Learn more about make or buy decision here:brainly.com/question/13781293

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