From the following information extracted from the Balance Sheet of XYZ Company, you are required to calculate:

Mission Foods produces two flavors of tacos, chicken, and fish, with the following characteristics:

postnew [5]

Answer:

1. $858,000

2. Chicken = 24,000 units and Fish = 36,000 units

Explanation:

The computation is shown below:

1. The anticipated level of profits for the expected sales volumes is

= Expected sales of chicken × (Selling price per taco - Variable cost per taco) + Expected sales of fish × (Selling price per taco - Variable cost per taco) - total fixed cost

= 200,000 × ($3 - $1.50) + 300,000 × ($4.50 - $2.25) - $117,000

= $300,000 + $675,000 - $117,000

= $858,000

2. The break even volume is

Let we assume the sale units be X

So, total units sold for chicken = 40X

And, for the fish it is = 60X

Sale units of chicken × (Selling price per taco - Variable cost per taco) + Sale units of chicken × (Selling price per taco - Variable cost per taco) = Total Fixed cost

0.40X × (3 – 1.50) + 0.60X × (4.50 – 2.25) = $117,000

0.60X + 1.35X = $117,000

1.95X = $117,000

So, the X is 60,000 units

So for chicken it is 60,000 × 40% = 24,000 units

And for fish it is 60,000 × 60% = 36,000 units

7 0

4 years ago

Swifty Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction

Over [174]

And i oop skskskkskskskkskskskskksksks

7 0

4 years ago

Stein corporation had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Tota

Mazyrski [523]

Answer:

$425 is the free cash flow which the firm generate during the just-completed year

Explanation:

The formula to compute free cash flow is shown below:

EBIT ( 1-tax rate) + Depreciation & Amortization - Change in Net working Capital - Capital Expenditure

where,

EBIT (1 - tax) = NOPAT

Change in Net working capital = Current year Total operating capital - Last year Total operating capital

= $2,500 - $2,000

= $500

And, the Capital Expenditure is not given

So, the free cash flow is

= $925 - $500

= $425

6 0

3 years ago

Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith

Reil [10]

Answer:

a. NOPAT = EBIT * (1-t)

NOPAT = $2,700 * (1-0.40)

NOPAT = $1,620

b. OCF = NOPAT + Depreciation

OCF = $1,620 + $1,600

OCF = $3,220

c. FCF = Net fixed asset investment - Net current asset investment

FCF = $3,320 - $1,400 - $1,400

FCF = $420

Note:

Net fixed asset investment = Change in net fixed assets + depreciation

= ($14,800- $ 15,000) + $1,600

= $1,400

Net current asset investment = Change in current assets - Change in accounts payable and accurals

= ($8,200 - $6,800) - {($1,600 + $200) - ($1,500 - $300)}

= $1,400

d. FCF is meaningful as it shows that OCF is able to cover Operating expenses as well as Investment in Fixed and Current Assets

4 0

3 years ago

Dividend payments are defined as: a. incremental increases in the value of the stock held by an investor due to rises in share p

sesenic [268]

Answer:

The correct option is B, the part share of the profits or earnings of a company paid to each shareholder on the basis of the number of shares

Explanation:

The shareholders are paid dividends from the distributable profits of the company and distributable profits imply profits recorded after other providers of finance such as preferred shareholders and bond-holders have been paid dividends and interest on bonds respectively.

The dividends paid can be in cash or in shares.Paying dividends in cash is known cash dividends while paying in shares is called stock dividend.

It is imperative to pay dividends in form of shares if there are viable investment projects the company intends to invest with the cash that have otherwise be paid out as dividends.

4 0

3 years ago