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damaskus [11]
3 years ago
12

Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variab

le costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.
Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $680

Unitary variable cost= $408

Fixed cost= $63,920

<u>To calculate the contribution margin and break-even point in units, we need to use the following formula:</u>

Unitary contribution margin= selling price - unitary variable cost

Break-even point in units= fixed costs/ contribution margin per unit

<u>a:</u>

Unitary contribution margin= 680 - 408= $272

Break-even point in units= 63,920 / 272

Break-even point in units= 235

<u>b:</u>

Unitary contribution margin= 544 - 408= $136

Break-even point in units= 63,920 / 136

Break-even point in units= 470

<u>c:</u>

Unitary contribution margin= 680 - 340= $340

Break-even point in units= 63,920 / 340

Break-even point in units= 188

<u>d:</u>

Unitary contribution margin= 680 - 408= $272

Break-even point in units= 53,040 / 272

Break-even point in units= 195

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Answer:

The company should order 100 units to minimize total inventory cost.

Explanation:

Given,

Annual Demand, D = 2,000 units

Order cost, S = $20

Purchase cost = $40

Holding cost, H = Purchase cost x percentage of holding cost

Holding cost = $40 × 20%

Holding cost = $8

We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,

Economic Order Quantity (EOQ) = \sqrt\frac{2*D*S}{H} }

EOQ = \sqrt \frac{2*2,000*20}{8}

EOQ = \sqrt{10,000}

EOQ = 100

8 0
3 years ago
Macy is a very creative person. Often, when trying to generate a novel or useful idea, she spends several days "mulling over" th
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Answer:

Correct answer is (E) incubation

Explanation:

Incubation stage of the process of gathering information about a creative work or an idea. It is a second stage in creative process where one reflect upon the preparation stage and allow the creative process to continued. It involves using high mental ability to combine thought elements that are stimulated at one point in time.

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3 years ago
What are the differences between flexibility and compromise
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The accounting records of Compass Point Wireless include the following as of December​ 31, 2016​:
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Answer:

1,               Compass Point Wireless

                  Balance sheet (partial)

Current Liabilities:                                $

Accounts Payable                            71,000

Interest Payable                               17,000

Salaries Payable                               10,500

Unearned Revenue                          2,400

Current Portion of Bonds payable  24,000

Total current Liabilities                 $ 124,900

Long term Liabilities                               $

Mortgage Payable                              80,000

Bonds Payable                                    64,000

Premium on Bonds Payable               10,000

Total long term liabilities                 $154,000

Total liabilities = Total current Liabilities + Total long term liabilities

=  $ 124,900 + $154,000

= 278900

2. Debt        Stockholders' equity           Debt to equity ratio

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The following accounts were abstracted from Oriole Company's unadjusted trial balance at December 31, 2020: Debit Credit Account
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Answer:

$52,710

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Calculation for allowance for uncollectible accounts credit balance

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Let plug in the formula

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Allowance for uncollectible accounts credit balance=$52,710

Therefore After adjustment at December 31, 2020, the allowance for uncollectible accounts should have a credit balance of $52,710

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