= Fixed Expenses/Weighted Average CM Ratio
Break-even point = P183,750 / (210,000/400,000)
= P350,000
The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business. This means that we have reached a production stage where production costs are comparable to product sales.
The break-even point is used in several areas of economics and finance. In accounting terms, it refers to the level of production at which the total revenue from production equals the total cost of production. In investing, the break-even point is the point at which the original cost equals the market price.
Learn more about the break-even point at
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Answer:
a. Total manufacturing cost $37,000
b. Unit product cost $37
Explanation:
Total Cost = Sum of all manufacturing costs
Total manufacturing cost -
direct materials $10,000
direct labor $12,000
overhead ($12,000×125%) $15,000
Total $37,000
Unit Product Cost = Total Cost / Number of Units
= $37,000/ 1,000 units
= $37
Answer:
D. It is cheaper to produce some goods in the U.S. because productivity is higher here.
Explanation:
If the statement "It has been all downhill for the West since China entered the world market; we just can't compete with hundreds of millions of people willing to work for almost nothing." Fails to connect wages and productivity, it means that despite China having many people willing to work for low wages it does not mean they are more productive.
Productivity is defined as how effectively a production process is. It is the ratio between output and input used.
If China has low productivity with the large workforce it has, it will be cheaper to produce goods in the United States that has a higher productivity.
The United States will be able to maximise inputs used in the production process to give higher output.
Answer:
$18.4
Explanation:
Data provided in the question:
Maximum value on which there is no tax = $500
Tax paid on the portion of the total value in excess of $500 = 8% = 0.08
Total value of the goods imported by the returning tourist = $730
Now,
The excess amount of portion on which the tax will be charged
= Total value of the goods imported - Maximum value on which there is no tax
= $730 - $500
= $230
Therefore,
@8% tax rate
Total tax that must be paid on excess portion i.e $230
= $230 × 8%
= $230 × 0.08
= $18.4
Answer:
11.11%
Explanation:
Calculation for the common-size balance sheet value of inventory
First step is to find the Total assets
Using this formula
Total Assets=Net fixed assets +Current assets
Let plug in the formula
Total assets = $518 + 274 = $792
Second step is to find the Common -size value of inventory
Using this formula
Common -size value of inventory = Inventory/ Total assets
Let plug in the formula
Common-size value of inventory = $88/$792
= .1111, or 11.11%
Therefore the Common-size value of inventory will be 11.11%
