Beliefs about what is ethical serve as a moral compass to guide behaviors of individuals

High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA

Vika [28.1K]

Answer:

(a)

5,500 units

(b)

6,125 units

Explanation:

First, we need to calculate the per unit selling price.

2007 2008

Unit sales 5,000 8,000

Sales revenue $60,000 $96,000

Selling Price $12 $12

Now we need th separate the vairbale and fixed cost from total expense using high low method

Variable cost = ( Higher activity Expense - Lower activity Expense ) / ( Higher activity - Lower activity )

Variable cost = ( $76,000 - $64,000 ) / ( 8,000 units - 5,000 units )

Variable cost = $12,000 / 3,000 units = $4 per unit

Fixed cost = $76,000 - ( $4 x 8,000 units ) = $44,000

Contribution Margin = Selling Price - Variable cost = $12 - $4 = $8

(a)

Breakeven Point = Fixed Cost / Contributin margin per unit

Breakeven Point = $44,000 / $8 = 5,500 units

(b)

Target sales = ( Fixed cost + Desired Profit ) / Contribution margin per unit

Target sales = ( $44,000 + $5,000 ) / $8 = 6,125 units

8 0

3 years ago

An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 9 when

solong [7]

Answer:

Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.

Explanation:

Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.

$PresentValue=\frac{FutureValue}{(1+r)^{n} }$

Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.

$PresentValue=\frac{500}{(1+0.07)^{9} } =271.97$

Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.

$Present Value=\frac{A((1+r)^{n}-1 )}{r(1+r)^{n} }$

And we solve for "A" like this

$171.97=\frac{A((1+0.07)^{9}-1 )}{0.07(1+0.07)^{9} }$

$171.97=\frac{A(0.838459212 )}{0.128692145}$

$171.97=A(6.515232249)$

$A=\frac{171.97}{6.515232249} = 26.40$

Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.

Best of luck.

4 0

3 years ago

When sales exceed production, the net operating income reported under variable costing generally will be:_____.

padilas [110]

When sales exceed production, the net operating income reported under variable costing generally will be <u>greater than the net operating income reported under absorption costing</u>.

Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.

Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.

Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.

Learn more about Absorption costing here brainly.com/question/26276034

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6 0

1 year ago

A Coverdell Education Savings Account may be preferred to a Sec. 529 Education Savings Account under all of the following circum

Tpy6a [65]

Answer:

A)The student beneficiary will use the money to pay for high school expenses.

Explanation:

A Coverdell Education Savings Account can be used for elementary, secondary, or higher education expenses (college). The money can be used to pay for public, private, or religious schools. On the other hand, 529 plans can only be used to pay for higher education expenses (college).

The maximum contribution to a Coverdell Education Savings Account is $2,000 per year per child and the contribution is not tax deductible. But when the distributions are taken to pay for the child's qualified education expenses, then they are not taxed.

6 0

3 years ago

Fiscal policy would be more effective if: a. crowding out occurred more often. b. the government could change taxes and expendit

Elodia [21]

Answer:

B) the government could change taxes and expenditures rapidly.

Explanation:

Fiscal policy is the government's spending and taxation policies carried out to influence the country's economy. The government can carry out an expansionary fiscal policy by reducing taxes or increasing spending to try to boost the economy, or it can carry out a contractionary fiscal policy that increases taxes and reduces spending to try to cool down the economy.

Expansionary fiscal policies are carried out to try to increase total aggregate demand, but it also increases the government's deficit and national debt. The main gals of fiscal policy should be to lower unemployment rate and achieve a sustainable economic growth.

4 0

3 years ago