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3 years ago

Consider each of the transactions below. All of the expenditures were made in cash.

Business

1 answer:

love history [14]3 years ago

8 0

Answer:

of the expenditures were made in cash.

a. The Edison Company spent $12,000 during the year for experimental purposes in connection with the development of a new product.

b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $7,500.

c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest-bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000.

d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $28,000.

e. The Mayer Company, plaintiff, paid $12,000 in legal fees in November, in connection with a successful infringement suit on its patent.

f. The Johnson Company traded its old equipment for new equipment. The new

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Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed co

uysha [10]

Answer: The company's current sales is 9,333 units.

It has to sell a total of 10,695 units in order to achieve a target pre tax income of $1,125,000.

First we calculate the number of units sold at the current sales level.

We compute this as:

$\frac{Sales}{Price per unit} = \frac{4,200,000}{450} = 93333.33 units$

Next we find the contribution margin per unit.

$Contribution margin per unit = Selling Price - Variable Cost$

$Contribution margin per unit = 450 - 270$

Contribution Margin per unit is $180.

Flannigan Company's current per-tax income is calculated as :

Sales 4200000

less:Variable costs @ $270 for 9333.33 units -2520000

Contribution 1680000

less:Fixed Costs -800000

Pre tax income 880000

With this information, we can calculate the Contribution Margin required if the pre tax income should be $1,125,000. We work backwards in order to find the Contribution Margin from Pre-tax income.

Targeted Pre Tax income $1,125,000

Add: Fixed Costs $ 800,000

Contribution Margin $1,925,000

Since we know the per unit contribution, we can calculate the number of units to be sold as:

$Targeted sales in units = \frac{New contribution margin}{Contribution per unit}$

$Targeted sales in units = \frac{1,925,000}{180} = 10,694.44$

Since products can't be sold in parts, any decimal value after a whole number will be rounded up. Hence the targeted sales will be 10,695 units.

7 0

3 years ago

Read 2 more answers

Write an essay about unemployment/retrenchment and globalisation

galina1969 [7]

I can help you write your essay.

Unemployment

- define unemployment

- What results because of unemployment

- why does unemployment happen?

- when does unemployment happen?

- Who are the most unemployed people? Why?

- research information about unemployment

retrenchment

- define retrenchment

- what causes retrenchment to happen?

- How does retrenchment affect society

Globalisation

- define globalisation

- What happens during globalisation?

- Is globalisation a good or bad things? What does it impact?

Please vote my answer branliest! Thanks.

8 0

3 years ago

Ty has 3 brother how much brothers does he have

Mnenie [13.5K]

Ty has 2 brothers excluding him

5 0

3 years ago

Read 2 more answers

Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premi

Tju [1.3M]

The main reason for the success of the Beats Electronics is: B. it created a perception that owning its products was cool.

Explanation:

Beats Electronics was able to outperform in the premium headphone market. They were able to out-stand from their competitive companies like JBL, Bose, Audio-Technica, Skullcandy and Sennheiser.

Beats Electronics made their customers to believe that owning their product is cool. They created a perception to the customers which made them to lead in the market.

Perception refers to the way the information is conveyed to others. Beat Electronics followed this strategy and made their customers to feel that owning their product is cool.

5 0

3 years ago

A company issued 5-year, 7% bonds with a par value of $500,000. The market rate when the bonds were issued was 6.5%. The company

san4es73 [151]

Answer:

The correct answer is $17,000.

Explanation:

According to the scenario, the given data are as follows:

Bonds percent = 7%

Par value of bonds = $500,000

Market rate = 6.5%

Cash received = $505,000

So, we can calculate the amount of recorded interest for semiannual interest period by using following formula:

First we calculate the premium on bonds,

So, Premium on bonds = Cash received - Par value of bonds

= $505,000 - $500,000

= $5,000

So, straight line amortization = Premium on bonds ÷ years

= $5,000 ÷ 5

= $1,000

So, Amount of interest expense for first semiannual is as follows:

Amount of interest = ( Par value of bonds × Bonds percent ) ÷ 2 - (straight line amortization ÷ 2)

= ( $500,000 × 7% ) ÷ 2 - ( $1,000 ÷ 2 )

= $17,500 - $500

= $17,000.

4 0

3 years ago