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Yakvenalex [24]
2 years ago
12

If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, the break-even sales (units) if

the variable costs are decreased by $2 is:__________ a. 1,950 units b. 2,340 units c. 1,114 units d. 2,127 units
Business
1 answer:
maksim [4K]2 years ago
8 0

Answer: b. 2,340 units

Explanation:

Break-even sales refers to the amount of sales that would give the company $0 profits.

It can be calculated by the formula;

= Fixed Costs / Contribution Margin

Contribution Margin = Sales - Variable costs

= 42 - (24 - 2)

= $20

Breakeven = 46,800/20

= 2,340 units

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Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini
Minchanka [31]

Answer:

                 Sheridan Company

                  Income Statement

  For the year ended December 31, 202x

Sales revenue                                $170,400

Cost of goods sold                      <u>($129,600)</u>

Gross profit                                     $40,800

Period costs                                  <u>($24,000)</u>

Operating income                           $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

4 0
3 years ago
The principle that allows you to perceive an orange shirt to be the same color under varying lighting conditions is known as:
katrin2010 [14]
<span>This is color constancy. With this ability, a person can perceive and understand that a color exists under various external conditions, usually lighting or other types of distortion. It is thought to be due to specialized neurons in the primary visual cortex that allow us to make these declarations.</span>
3 0
3 years ago
Which of the following is true about the ISO? Question 1 options: It makes technical recommendations about data communications i
Vadim26 [7]

Answer:

All of the above

Explanation:

ISO means: International Organization for Standardization.  It is one of the most important standard making bodies.

This organization has issued the standard ISO 15118 (1-9) that gives technical recomendations about data communication interfaces for road vehicles. So, both concepts listed above are true.

6 0
3 years ago
You are given the following information for Cleen Power Co. Assume the company’s tax rate is 40 percent. Debt: 5,000 6.6 percent
Misha Larkins [42]

Answer:

    WACC   = 8.84%

Explanation:

Face value= $ 1000    (assume)

Current price = 1000* 109% = 1090

semianual interest =1000 *.066*6/12 = 33

semiannual months = 20 *2 = 40

Yield to maturity of bonds = [semiannual interest +(face value -current price) /months]/[(face value+price)/2]

                                            = [33 + (1000- 1090 )/40 ]/[(1000 +1090)/2]

                                            = [33 + (-90/40) ] / [2090 /2]

                                           = [33 - 2.25 ] /1045

                                          = 30.75 /1045

                                       = .0294 or 2.94% semiannually or (2.94*2) =5.88 % annually

After tax cost of debt = 5.88 (1- .40 ) = 3.528 %

Market value of bond = 1090 *5000 = $ 5450000

b)cost of equity =Rf +[beta*market premium ]

                           = 4.6 + [1.12 * 5]

                            = 4.6 + 5.6

                            = 10.20 %

market value of equity = 380000*56 =$ 21280000

Total market value of debt and equity =5450000 +21280000

                                                                  = $ 26730000

weight of debt = 5450000/26730000 = .2039

weight of equity = 21280000 /26730000 = .7961

WACC = (after tax cost of debt *WD)+(cost of equity *We)

            = (3.528 * .2039 )+(10.20 * .7961)

              = .7194 + 8.1202

              = 8.84%

7 0
3 years ago
In its annual income statement, Fox Co. reported income before income taxes of $300,000. Fox estimated that, because of permanen
mezya [45]

Answer:

In total 84,000 income tax will be reported.

Explanation:

taxable income 280,000

tax rate: 30%

tax expense: taxable income  x tax rate:

                           280,000       x    30%     =     84,000

The company already expected 50,000 tax income:

income tax expense 50,000 debit

             cash                           50,000 credit

So it will adjust for the difference: 84,000 - 50,000 = 34,000

income tax expense 34,000 debit

            income tax payable      34,000 credit

In total 84,000 income tax will be reported.

5 0
3 years ago
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