1)The cm ratio<span> is the difference between a company's sales and variable expenses (expenses proportional to units produced), expressed as a <span>percentage. Hence, we have that the costs of the product per unit are 70%= 100%-30% of the unit income, thus they are 40*70%=28$. Thus, the variable expenses per unit are 28$.
2) In order to break even, they have to make profit of 180000$ from sales. Each unit gives a profit of 12$=40$-28$ (unit profit). Hence, in order to make a profit of 180000$, the have to sell 180000/12=15000 units. Those units will bring in sales of 40*15000=600000$. We also have that if the company wants to make a net profit of 60000$, the profit from the unit sales needs to be 240000$ in total. Hence, they will need 240000/12=20000 units and the sales will be 40*20000=800000$ at that point.
3) Let us calculate the new cost. It is obviously 28-4=24$. The new profit margin per unit is 40-24=16$. Hence, to break even this time they will need only 180000/16=11250 units. They will be sold for 40*11250=450000$ in total. To make that additional profit of 60000$, they will need to sell 60000/16 more units, hence 3750 more units. This means that they need to do an additional 150000 dollars in sales. With the new variable cost, to achieve profit of 60000 they need to sell 11250+3750=15000 units and they will cost 600000$
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Answer:
Depreciable cost per mile= $0.37
Explanation:
Giving the following information:
Purchase price= $38,800
Salvage value= $1,800
Expected to be driven 100,000 miles over its estimated useful life.
<u>To calculate the depreciable cost per mile, we need to use the following formula:</u>
Depreciable cost per mile= (original cost - salvage value)/useful life of production in miles
Depreciable cost per mile= (38,800 - 1,800)/100,000
Depreciable cost per mile= $0.37
Answer:
The notation that is made in a formal business letter that contains additional documents in the envelope is:
“Enc.” or “Att.”
Explanation:
"Enc." means "Enclosures," while "Att." means "Attention." These notations draw the attention of the letter recipient to the fact that there are other documents that may be accompanying the business letter. The plural form of the word "Enclosures" is regularly used with the number of enclosures indicated. But if it is one document, then the word "Enclosure" is preferred, indicating that the document is not more than one. When "Attention" or "Att." is used, the documents are listed.
Answer:
The correct answer is b. a unilateral contract
Explanation:
In a unilateral contract, only one of the parties generates the obligation to provide a service. In this case KFC forces itself to offer a discount as a result of printing a document to find out people's opinion about the main favorite of the Yahoo tournament. With this, KFC seeks to encourage people to submit their votes and to know the individual appreciations of the particular event.
Answer:
a. $18,000
b. $3,600
c. $14,400
Explanation:
The calculations are shown below:
a. Total product cost
= Raw materials purchased and used + Wages of production workers + Depreciation on manufacturing equipment
= $6,200 + $7,400 + $4,400
= $18,000
b. The total cost of the ending inventory would be
= (Total product cost) ÷ (Started and completed units) × remaining units
= ($18,000) ÷ (3,000 units) × 600 units
= $3,600
The remaining units would be
= 3,000 units - 2,400 units
= 600 units
c. The total of cost of goods sold would be
= (Total product cost) ÷ (Started and completed units) × units sold
= ($18,000) ÷ (3,000 units) × 2,400 units
= $14,400
