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AURORKA [14]
2 years ago
6

The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant that will depreciate on a straight-l

ine basis. Fixed costs are $2 million per year. A calculator costs $5 per unit to manufacture and sells for $20 per unit. If the plant lasts for three years and the cost of capital is 12 percent, what is the accounting break-even level of annual sales
Business
1 answer:
Harrizon [31]2 years ago
8 0

Answer:

The Break-even annual sales= $2,222,222.22

Explanation:

<em>The break-even sales is the amount of revenue that a business must generate that would equate its total costs to total revenue. At the break even sales, the contribution is exactly to total iced cost, and the business makes no profit or loss</em>

Contribution margin ratio = (20-5)/20=75%

Break-even (units) = Total general fixed cost /(selling price- variable cost)

                              = 5,000,000/75%

                            =  $6,666,666.67

The annual sales = $6,666,666.67/3 =   $2,222,222.22  

The Break-even annual sales= $2,222,222.22

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Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value beca
Alla [95]

Answer:

C. include a credit to the equipment accumulated depreciation account.

Explanation:

Since Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to the equipment accumulated depreciation account.

In Accounting, Depreciation can be defined as the decrease in the value of an asset (factory equipment, logistics tools etc) as a result of wear or tear, within a specific period of time. Depreciation is used for the allocation of cost to tangible assets with respect to its life expentency or within its useful life.

7 0
3 years ago
What is the term for the total amount of money produced by the sale of goods and services?
ELEN [110]

Answer:

D) revenue

Explanation:

Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations.

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4 0
2 years ago
All of the following statements are true regarding earnings per common share (EPS) except:
SVEN [57.7K]

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares)  is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

8 0
3 years ago
At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of
Oksi-84 [34.3K]

Answer:

Explanation:

The journal entry to record the expenditure account is shown below:

Postage A/c Dr $100

Business lunches A/c Dr $150

Delivery fees A/c Dr $75

Office supplies /c Dr $25

                To  Petty cash A/c $350

(Being expenditure is recorded)

So, the debit petty cash account would not be considered as it is credited while passing the journal entry.

7 0
3 years ago
Q. An urban planner is designing a new urban housing development. It will have fiveapartment buildings, two basketball courts, a
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Complete Question:

An urban planner is designing a new urban housing development in a currently rural area near an existing city. The urban development will have five 10-story apartment buildings, two basketball courts, a playground with permeable foam pavers, a 10-acre green space with a small man-made pond, one 5-story parking deck, and direct access to the mass transit train line. Which of the following aspects of the design for this new urban development will best help to reduce the amount of carbon dioxide released into the atmosphere?

A. The land cleared to build the new development occurs in a rural area rather than within the city limits.

B. The playground is made with permeable foam pavers rather than with impervious concrete.

C. Access to the mass transit train line will provide inhabitants an alternative to driving personal vehicles.

D. Food and other resources must be transported to the development from up to 200 miles away.

Answer:

Access to the mass transit train line will provide inhabitants an alternative to driving personal vehicles.

Explanation:

The best option that will help to reduce the amount of carbon dioxide released into the atmosphere is to create access to the mass transit train line which will consequently provide inhabitants an alternative to driving personal vehicles.

8 0
3 years ago
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