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3 years ago

Quail, Inc., has a contribution margin of 40% and fixed costs of $121,840. What is the break-even point in sales dollars

Business

1 answer:

ankoles [38]3 years ago

5 0

Answer:

$304,600

Explanation:

Break-even point = Fixed cost / Contribution margin

Break-even point = $121,840 / 0.4

Break-even point = $304,600

Therefore, the break-even point is $304,600

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TCBW last year had an average collection period (days sales outstanding) of 33 days based on accounts receivable of $350,000. Al

sergeinik [125]

Answer:

$296,969.70

Explanation:

Days of sales outstanding = number of days in a period / receivables turnover

Receivables turnover = revenue / average receivables

33 = 365 / receivables turnover

receivables turnover = 11.060606

11.060606 = revenue / $350,000

revenue = $3,871,212.12

with the new policy and same revenue :

28 = 365 / receivables turnover

receivables turnover = 13.035714

13.035714 = $3,871,212.12 / average receivables

= $296,969.70

7 0

3 years ago

As a CEO, you are concerned that your firm and the industry in your country are being devastated by foreign imports. Trade lawye

sashaice [31]

Answer:

The company can file antidumping case against the leading foreign rivals. The probability of winning the case is only high when there is cash deposits near to zero in the country and balance of payment is negative.

Explanation:

There can be a law suit files against the foreign rivals but the company will have to bear lawyers fee for this. There is a threat to employment of labor in the home country as most of the goods are imported so factories in the home country will be moved towards shut down because consumers will be buying imported goods which are offered at low price.

7 0

3 years ago

When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a:____

Gwar [14]

Answer:

c. Debit to Cash and a credit to Merchandise Inventory

Explanation:

When a buyer returns goods these are return outwards,

The correct entries to record them would be to debit cash as goods have been returned and credit the merchandise purchased so,

Debit cash account with the amount of goods returned

Credit Merchandise inventory with the amount of goods returned.

Hope that helps.

7 0

3 years ago

Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution marg

myrzilka [38]

Answer:

Break-even point (units)= 8,464 units

Explanation:

Giving the following information:

Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000.

First, we need to calculate the proportion of sales:

Product A= 7,500/10,000= 0.75

Product B= 2,500/10,000= 0.25

Now, using the following formula, we can determine the break-even point in units:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 328,000/ (0.75*33 + 0.25*56)

Break-even point (units)= 328,000/38.75

Break-even point (units)= 8,464 units

8 0

4 years ago

If a business has both the focus and ability to maximize profits for shareholders, but also seeks after a broader mission withou

Viktor [21]

Answer:

The correct answer is (c)

Explanation:

Business Corporation is a separate business entity that is controlled by elected group members know as the board of directors. They are responsible for business activities and they usually seek for long term profits. This separate entity is controlled by shareholders. Overall, they aim for a broader mission without maximising shareholders profit. Business corporations usually reinvest dividends and profits to improve and expand.

7 0

4 years ago