A.) $2894.71<br> b.) $2202.72<br> c.) $2330.20<br> d.) $2654.23

Boston’s Dairy has just opened its main yogurt factory in upstate Massachusetts. This main factory can produce 3,500 boxes of yo

REY [17]

Answer:

7,733 units

Explanation:

Breakeven point is one where revenue equals the cost.

In the main Factory:

Fixed cost = $40,000

Variable cost = $19,250 [($4.5 + $1.0) * 3,500 boxes]

Total cost = $59,250 [$40,000 + $19,250]

Revenue = $52,500 [3,500 * $15]

Net profit or loss : $52,500 - $59,250 = - 6,750 Loss

In the new Factory:

The break even point will be achieved when the loss of $6,750 in the main factory is covered by the new factory.

Fixed cost : $16,000

Variable cost : $6.0 + $1.0 = $7

Selling price = $15

16,000 + 6,750 + 7x = 15x

solving for x we get:

x = 2,844.

In the new factory 2,844 units needs to be produced in excess to achieve the breakeven point.

Total units required to produce 3,500 + 2,844 = 6,344.

If the company adds bonus of $0.80 for its sales force on each box sold above the breakeven then the cost will be increased.

Contribution Margin : 15 - [ 6 + 1 + 0.80 ] = $7.20

Box required to sell to produce net operating income of $10,000

10,000 / 7.20 = 1,389 units

Total units 7,733 [6,344 + 1,389]

8 0

4 years ago

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?A. Small au

mylen [45]

Answer: The explanation are as follows:

Explanation:

(A) If small automobiles become more fashionable then this will attract the consumers attention towards small automobiles. So, this will increase the demand for the small automobiles.

(B) If the price of large automobiles rises and the price of small automobiles remains the same. They both are substitute goods. So, the demand for small automobiles increases as the price of its substitute goods increases.

(C) If small automobiles are inferior good and there is reduction in the income of consumers. This will increase the demand for small automobiles as the income of the consumers decreases.

(D) If consumers anticipate that the price of small autos will greatly come down in the near future then they stop buying small automobiles today. So, the demand for small automobiles decreases because consumers waiting for the lower price in the near future.

(E) Gasoline and small automobiles are complementary goods, therefore, if the price of gasoline substantially drops, as a result demand for small automobiles increases.

4 0

3 years ago

Question 1

Alex73 [517]

Answer:

Command

Explanation:

In the command economic model, the government determines the level of economic productions in the country. It decides what will be produced, its quantity, and the cost price. A central authority or the government owns all the factors of production.

The command economy is also the planned economy. The government plans and produces all goods and services. The private sector is not present in the command economy.

4 0

3 years ago

On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at

My name is Ann [436]

Answer:

The total amount paid to bondholders is $2,420.

Explanation:

Bonds are long-term liability or debt, usually issued at face value, discount or premium.

The total amount paid to bondholders on December 31, 2018 will be the semiannual interest payments, calculated as follows: Face value of the bond x Period interest rate (semi-annual).

Total payment: $44,000 x 11% / 2 = $2,420

8 0

3 years ago

Grouper Corporation has outstanding 1,900 $1,000 bonds, each convertible into 60 shares of $10 par value common stock. The bonds

natima [27]

Answer:

Explanation:

The journal entries are shown below:

1. Bonds payable A/c Dr $1,900,000 (1,900 × $1,000)

To Discount on bonds payable $37,000

To Common stock $1,140,000 ($10 × 60 shares × 1,900)

To Additional paid-in capital in excess of par $723,000

(Being the conversion of bonds is recorded and the remaining balance is credited to the Additional paid-in capital in excess of par)

4 0

4 years ago

A.) $2894.71 b.) $2202.72 c.) $2330.20 d.) $2654.23