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Andreyy89
3 years ago
10

5.For the past year, Chandler Company had fixed costs of $70,000, unit variable costs of $32, and a unit selling price of $40. F

or the coming year, no changes are expected in revenues and costs, except that property taxes are expected to increase by $10,000. Determine the break-even sales (units) for: (12 pts ~ 6 pts each) a.The past year: b.The coming year
Business
1 answer:
zheka24 [161]3 years ago
8 0

Answer:

a.

Break even in units = 8750 units

b.

Break even in units = 10000 units

Explanation:

The break even in units is the number of units that a business must sell in order to for its total revenue to be equal to total costs and for it to break even. The break even in units is calculated as follows,

Break even in units = Fixed Costs / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

a. Past Year

Break even in units = 70000 / (40 - 32)

Break even in units = 8750 units

b. Coming Year

The property taxes which are a fixed cost will increase by $10000. Thus total fixed cost for coming year will be = 10000 + 70000 = 80000

Break even in units = 80000 / (40 - 32)

Break even in units = 10000 units

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During its first month of operations, Neptune Company (1) borrowed $200,000 from a bank, and then (2) purchased an equipment cos
sveta [45]

Answer:

$330,000

Explanation:

the journal entries would be:

Dr Cash 200,000

    Cr Notes payable - bank 200,000

Dr Equipment 80,000

    Cr Cash 40,000

    Cr Notes payable 40,000

Dr Merchandie inventory 60,000

    Cr Accounts payable 60,000

Dr Accounts receivable 120,000

    Cr Service revenue 120,000

Dr Accounts payable 30,000

    Cr Cash 30,000

Dr Utilities expense 60,000

    Cr Cash 60,000

Assets:

  • Cash = 200,000 - 40,000 - 60,000 - 30,000 = $70,000
  • Equipment = $80,000
  • Merchandise inventory = $60,000
  • Accounts receivable =$120,000
  • total = $330,000

8 0
3 years ago
Read 2 more answers
Management science stresses the use of rational, science-based techniques and mathematical models to improve _____.
ANEK [815]

Answer:

Decision making and strategic planning

Explanation:

Management science refers to a science that helps handling the activities of an organization to accomplish established goals with the use of scientific methods. In order to reach their objectives, companies need to plan the strategies they are going to use and make sound decisions based on careful research and analysis of data to solve problems. For this, companies tend to use different techniques and mathematical models that help them to have a better understanding of the company situation and discover the right path to be successful. According to this, the answer is that management science stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning.

5 0
4 years ago
According to the International Fisher Effect, if an investor purchases a five-year U.S. bond that has an 20)_____ annual interes
Sidana [21]

Answer:

British pound: appreciate

Explanation:

International Fisher Theory is an economic theory which establishes a relationship between two country’s exchange and nominal interest rates of their currency.

It states that the expected inconsistency between the exchange rate of two currencies is approximately equal to the difference between their countries' nominal interest rates.

If an investor purchases a five-year U.S. bond that has an annual interest rate of 6% rather than a comparable British bond that has an annual interest rate of 4%, then the investor, at a minimum, must be expecting the British pound to appreciate at a rate less than 2% per year.

The reasoning behind it is that a country with a higher interest rate will also very likely to have a higher inflation rate.

8 0
4 years ago
On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value
aksik [14]

Answer:

Option (a) is correct.

Explanation:

Depreciation in 2017:

=\frac{Original\ cost-Salvage\ value}{Useful\ life}\times time\ period

=\frac{50,000-8,000}{6}\times\frac{3}{12}

      = $1,750

Accumulated Depreciation = $29,400 + Depreciation in 2017

                                             =  $29,400 +  $1,750

                                             =  $31,150

Book value on date of sale = Original cost - Accumulated Depreciation

                                             = 50,000 - 31,150  

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Loss on sale = Book value on date of sale - Sales price

                     = 18,850 - 18,000

                     = $850 (Loss)        

8 0
3 years ago
Read 2 more answers
The sources of grievances in the workplace generally involve:
kondaur [170]

The sources of grievances in the workplace generally involve the following factors such as the;

-          Promotions

-          Layoffs

-          Overtime rules

These factors affect the employees in which causes grievances because of certain scenarios affecting this factors involve in the workplace.

7 0
4 years ago
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