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kondor19780726 [428]
3 years ago
13

Kent Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Ke

nt can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. What effect would the purchase of the new machine have on Kent's break-even point in units
Business
1 answer:
Papessa [141]3 years ago
7 0

Answer:

The purchase of the new machine will decrease Kent's break-even point in units.

Explanation:

If we divide fixed costs by the revenue per unit minus the variable cost per unit, we have the break-even point in units.

The actual break-even point is 10,000 units. Let see it with the numbers.

260,000/(50-24)=10,000

The possible break-even point if Kent boghts the machine, is 9,200 because

(260,000+11,400)/(50-24-3.50)=9,200

in conclusion, the break-even point in units decreases.

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The reuse of one's previously published material in a new journal article is most appropriate if:
saveliy_v [14]
It's appropriate if it's cited and used as an example or prompt.
6 0
3 years ago
Sandy wants to go on a trip in 10 years. If she invests $1,000 per year at the end of each year for 10 years at a 12% interest r
atroni [7]

Answer:

$17,549

Explanation:

Data given in the question

Number of years = 10

Invested amount = $1,000 per year

Rate of interest = 12%

So by considering the above information, the accumulated amount is

= Invested amount × future value of an annuity for 12% at 10 years

= $1,000 × 17.549

= $17,549

Refer to the Future value of an annuity table

In order to find out the accumulated amount we simply multiplied the invested amount with the factor

5 0
2 years ago
Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of
IRINA_888 [86]

Answer:

$0.15 hours per unit

Explanation:

Given that

Direct material cost = $16

Assume Direct labor cost = X

Manufacturing overheads = $18

Profit margin = 20%

Direct labor per hour cost = $28

The computation of direct labor-hour input is shown below:-

Total manufacturing cost = X + $34

Total cost of goods sold = (X + $34) × 1.7 = $66

Direct labor cost per unit

= (X + $34) = $38.82

= $38.82 - $34

= $4.32

Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost

= $4.32 ÷ $28

= $0.15 hours per unit

3 0
3 years ago
Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for
Tanzania [10]

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

3 0
3 years ago
Marcus, a high school student, works at a lumberyard making $10.50 an hour. with his academic and sports schedule, he is able to
max2010maxim [7]
Given:
salary: <span>$10.50 an hour
25 hours a week

expenses:
Cellphone bill: $65/month
car insurance: $1,200/yr
*20% taxes.

There is no specific question but I will solve for Marcus net earnings for the year.

25 hours/week * 52 weeks/yr = 1,300 hours/year

Wages: 10.50 per hour * 1,300 hours/year = $13,650 Gross salary per year
Taxes: 13,650 * 20% = 2,730 

13,650 - 2,730 = 10,920 net salary for the year

Cell phone bill: 65 per month * 12 months = 780

Net salary:         10,920
Cell phone bill       (780)
Car insurance: <u>    (1,200)</u>
Net Income:       8,940 per annum.




</span>
3 0
3 years ago
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