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kotegsom [21]
3 years ago
6

Principal Printing produces custom labels and stationery for companies. In conducting CVP analysis of its Personalized Package,

management decided to determine how many of the packages would need to be sold in order to justify continuing the product line. Management determined that fixed costs direct related to this particular product amounted to $54,000 annually. Principal reported $240,000 of gross sales related to this product and variable product costs of $180,000. Assuming that each Personalized Package sells for $12 per unit, what is the minimum amount of total sales dollars of Personalized Packages that Principal needs in order to justify the product line
Business
1 answer:
BartSMP [9]3 years ago
6 0

Answer:

18,000 personalized packages

Explanation:

Profit-volume ratio = ($240,000 - $180,000) / $240,000

Profit-volume ratio = 0.25

Profit-volume ratio= 25%

Break-Even-Point = $54,000 / 25%

Break-Even-Point = 216,000

The minimum personalized packages that needs to sell to break even:

= Break-Even-Point /  Personalized Package sales per unit

= 216,000 / $12

= 18,000 personalized packages

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Categorize each statements as a component of Gross Domestic Product (GDP): consumption, investment, government, or net exports.
marishachu [46]

Answer:

The Gross Domestic Product (GDP) is a measure of the value of all final Goods and Services in an Economy in a given period usually a year.

It can be calculated using the Expenditure method which is;

= <em>Consumption + Investment + Government Spending + Net Exports</em>

Consumption

Here, the final goods and services that all households in the Economy purchased and used for the year are included. It is usually the largest component of GDP.

The following will fall here.

- <em>Ice cream</em>

<em>- A domestically manufactured personal computer</em>

<em>- Cab fare for personal use</em>

<em>- A ticket to a local sporting event</em>

<em>- 55 cent tacos</em>

Investment

The Goods that will fall under here include Capital goods purchased or made in an Economy for the purpose of increasing production capacity.

Of the goods listed only one will fall here being;

- <em>A Domestically Manufactured Personal Computer. </em>

<em />

Government Spending

This includes all Public Spending in the Economy on goods and services for things such as Health and Defense but excluding transfer payments such as Social Security.

- <em>Public School Teacher's Salary will fall under here. </em>

Net Exports

These are the Exported goods from the country less the goods that it imported. From the above only one item falls under this category;

- <em>Exported Doll House</em>

6 0
3 years ago
​Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units is​ 7,000 a
Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units are​ 7,000 and budgeted sales in units are​ 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0
3 years ago
The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
aleksandr82 [10.1K]

Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

brainly.com/question/24258358

#SPJ4

7 0
1 year ago
On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of pas
Lapatulllka [165]

Answer:

Check the explanation

Explanation:

a)

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.

3 0
3 years ago
In his search for a franchised business that would satisfy his passion for the outdoors and also earn him a decent living, Asher
Alexandra [31]

Answer:

royalties

Explanation:

Based on the scenario being described within the question it can be said that in the context of business these obligations are referred to as royalties. Royalties are shared obligations in which the franchisee agrees to pay the franchisor part of the profits that they make from using their brand name or products. Such as is being illustrated in this scenario.

8 0
3 years ago
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