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2 years ago

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The black shoe company produces its famous madison shoe, which sell for $60m per pair, the operating income for 2020 is as follo

ws: Revenues $300,000 Variable costs $120,000 Fixed costs $108,000
What is the break-even point in units?

1 answer:

Xelga [282]2 years ago

7 0

The brink ven link te 36,000

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During 2020, Morefield Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumula

nikdorinn [45]

Answer:

1. $1,015,000

2. $1,015,000

Explanation:

1. Computation for the Avoidable interest.

First step is to Compute the weighted average interest rate:

Principal Interest

12% ten-year bonds$ 7,000,000 $840,000

9% 3-year note $3,500,000 $315,000

Total $10,500,000 $1,155,000

Weighted average interest rate = $1,155,000 ÷ $10,500,000

Weighted average interest rate= 11%

Now let compute the Avoidable Interest

Weighted Average Accumulated Expenditures *Applicable interest rate = AVOIDABLE INTEREST

$6,300,000 *.10 = $630,000

$3,500,000 *.11= $385,000

Total $9,800,000 $1,015,000

Therefore the Avoidable Interest is $1,015,000

2. Computation for Total interest to be capitalized during 2020

2020 Actual interest cost

Construction note $6,300,000 × .10 =$630,000

12% ten-year bonds, $7,000,000 × .12 =$840,000

9% three-year note, $3,500,000 × .09=$315,000

Total $1,785,000

Therefore Total interest to be capitalized during 2020 will be $1,015,000 which is the LESSER of

$1,785,000

8 0

2 years ago

Using the information given here, what are the earnings per share for ghi company? • earnings = $375,000 • number of shares outs

KIM [24]

Earnings per share is "$2.5".
We can calculate this in such a way;
<span>Earnings per share = After-tax income or earnings /number of shares outstanding
</span>= <span>$375,000 / $150,000
= $2.5</span>

7 0

2 years ago

While researching the feasibility of converting her company's products to solar energy, Hailie reads several reports on innovati

Marina CMI [18]

Answer:

d. generate her own conclusions and recommendations.

Explanation:

Analyzing the information in the question above, the most suitable option for Hailie's company would be to generate its own conclusions and recommendations, since there are two approaches, positive and negative about innovations in the use of solar energy, so it would be ideal for Hailie to use the approach that best suited her company, for that she could analyze whether the energy benefits for the company's products would meet the high costs and thus draw her own conclusions.

This can also be a strategy for positioning the company that can generate value for stekolhders, since the use of sustainable products and energies is a highly valued issue today, where companies are seen as active agents of social and environmental development and protection.

3 0

3 years ago

During the current year, Brewer Company acquired all of the outstanding common stock of miller Inc. paying $12,000,000 cash. The

Lesechka [4]

Answer:

See the explanation below:

Explanation:

The merged details are first sorted as follows:

Details Book Value ($) Fair Value ($)

Accounts receivable 1,800,000 1,625,000

Inventories 2,700,000 4,000,000

Property Plant and Equipment 9,000,000 11,625,000

Accounts payable 3,000,000 3,000,000

Bonds payable 4,500,000 4,125,000

The calculation will now be done using the fair value as follows:

Total fair value of assets = $1,625,000 + 4,000,000 + 11,625,000 = $17,250,000

Total fair value of liabilities = $3,000,000 + 4,125,000 = $7,125,000

Fair Value of Miller Inc. Equity = $17,250,000 - $7,125,000 = $10,125,000

Goodwill from the acquisition = $12,000,000 - $10,125,000 = $1,875,000

The journal entries will look as follows:

<u>Details Dr ($) Cr ($) </u>

Goodwill 1,875,000

Miller Inc. Equity acquired 10,125,000

Cash 12,000,000

<u>To record the acquisition Miller Inc. </u>

7 0

3 years ago

Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categori

tino4ka555 [31]

Answer: 3 million.

Explanation:

Unemployment is defined as when a member of a Country's labor force is jobless but actively looking for work.

In the Scenario 28-1, the discouraged people are not counted as they are discouraged and not looking for work and 1 million other people being students and retirees amongst others are not looking for work either.

The unemployed section of Mankiwland is therefore the 3 million unemployed people.

4 0

2 years ago