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Law Incorporation [45]
2 years ago
10

Lawn Chopper Company sells two types of lawn mowers. The first one is a basic lawn mower, which has variable costs of $50 and se

lls for $150. The second type is a riding tractor with variable costs of $500 and which sells for $1,500. The company has total fixed costs of $5,000,000. The sales mix for the company is three lawn mowers to one riding tractor. Your manager would like to know how many of each of the product the company must sell to break even.
Business
1 answer:
Temka [501]2 years ago
7 0

Answer:

See below

Explanation:

Breakven even point is computed as

= Fixed costs / ( Sales price per unit - Variable costs per unit)

For basic lawn mower, Given that;

Fixed cost = $5,000,000

Sales price per unit = $150

Variable costs per unit = $50

BEP = $500,000 / ($150 - $50)

BEP = $500,000 / $100

BEP = 5,000 units

For Riding tractor, given that;

Fixed costs = $500,000

Sales price per unit = $1,500

Variable cost per unit = $500

BEP = $500,000 / ($1,500 - $500)

BEP = $500,000 / $1,000

BEP = 500 units

It therefore means that 5,000 units of basic Lawn mower must be sold to break even, while 500 units of riding tractor must be sold to break even.

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3 years ago
Determine whether the study depicts an observational study or a designed experiment. A researcher obtained a random sample of 10
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Answer:

A. Observational study

Explanation:

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3 years ago
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs
Mekhanik [1.2K]

Answer:

Overhead absorption rate

= <u>Budgeted overhead </u>               x 100

  Budgeted direct labour cost

= <u>$400,000 </u>        x 100

   $2,000,000

= 20% of direct labour cost

Overhead applied

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= $360,000

The balance in the factory overhead account is $360,000 debit

The correct answer is B

Explanation:

In this case, we need to calculate the overhead application rate, which is the ratio of budgeted overhead to budgeted direct labour cost multiplied by 100. Overhead applied is calculated as overhead application rate multiplied by actual direct labour cost.

6 0
3 years ago
Jello's Market purchased $1,000 of goods on account with terms of 2/10,n/30. They returned $200 of the goods due to defect the n
Andreyy89

Answer:

debit Accounts Payable $800; credit Merchandise Inventory $16; and credit Cash $784

Explanation:

Since Jello's Market purchased $1,000 of goods on account with terms of 2/10,n/30, and they returned $200 of the goods due to defect the next day.

Since the goods are paid fr the next day, if falls within the settlement for discount date which is 2% within 10 days

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This would be the case because accounts payable account would have been credited since the goods were not bought for cash but on account, and the would be $1000 less $200 returns, which is $800.

The discount of 2% x (1000 - 200 returns) would be $16 and posted directly to inventory, since it is a perpetual inventory system.

The actual amount paid is credited to cash, which is $1000 - $200 returns - $16 discount

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You are the PR officer of a major MNE in the chemicals industry. The national press in your home country alleges that your compa
yarga [219]
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