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Vladimir79 [104]
3 years ago
9

Stuart Corporation produces products that it sells for $17 each. Variable costs per unit are $9, and annual fixed costs are $163

,200. Stuart desires to earn a profit of $25,600. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.
Business
1 answer:
Mila [183]3 years ago
8 0

Answer:

See below

Explanation:

The formula for break even point in unit and dollar is as sewn below;

Break even point in units = Fixed expenses / Contribution margin per unit

Where

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

Contribution margin per unit = $17 - $9 = $8

But

Fixed expenses = $163,200

Break even point in unit = $163,200 / $8 = 20,400 units

Break even point in dollars = Fixed expense / Profit volume ratio

Where

Profit volume ratio = (Contribution margin per unit / Selling price per unit) × 100

Profit volume ratio = ($8/$17) × 100 = 47.06%

But

Fixed expense = $163,200

Break even point in dollars = $163,200 / 47.06% = $3,468

For desired profit

Sales volume in units = Fixed expense + Desired profit / Contribution margin per unit

= $163,200 + $25,200 / $8

= $188,400/$8

= 23,550 units

Sales volume in dollars = Fixed expenses + Desired profit / Profit volume ratio

= $163,200 + $25,200 / 47.06%

= $4,003

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Answer:

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Explanation:

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(Being cost of goods sold expense recorded)

The wrong entry passed has been:

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The rectifying (correcting) journal entry should be:

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(Being rectification entry for cost of goods sold recorded)

Cost of goods sold is an expense and expenses should be debited.

At the same time, purchase being a nominal account, crediting it would reduce the purchases balance.

Supplies expense was wrongly debited so it has been credited to cancel out the effect.

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n assembly line with 50 activities is to be balanced. The total amount of time to complete all 50 activities is 40 minutes. The
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Explanation:

a.) What are the maximum and minimum cycle times?

The maximum cycle time is 40 minutes and the minimum cycle time is 4.0 minutes.

b.) How much daily output will be achieved by each of those cycle times?

The daily output rate is determined by the following equation CT = A/R

For maximum cycle time = 400/40 = 10 units per day

For minimum cycle time= 400/4.0 = 100 units per day

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Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 600,0
castortr0y [4]

Answer:

1.

Break even in units = 12100 units

Break even in dollar sales = $484000

2.

Total contribution margin at break even point is $145200.

Explanation:

1.

Break even point is a point, calculated in either units or in dollar value, which provides a point where there is no profit or no loss and the total sales revenue is equal to the total cost.

Break even in units and in dollars can be calculated as follows,

  • Break even in units = Fixed costs / Contribution margin per unit

  • Break even in dollars = Fixed costs / Contribution margin ratio

  • Where contribution margin = Selling price per unit - variable cost per unit

  • Contribution margin ratio = Contribution margin per unit / selling price per unit

Break even in units = 145200 / 12    = 12100 units per month

Break even in dollars = 145200 / (12/40)    = $484000

2.

Total contribution margin at break even point is $145200 because total contribution margin is the difference between the total sales revenue and total variable cost and at the break even point, the total contribution margin is enough to cover total fixed cost. So, it is equal to the total fixed cost.

6 0
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Flura [38]
The cyclical approach is used to calculate gross domestic product. False
A cyclical approach is described as having a definite plan that is used to promote longterm habits. Think of cyclical just as a cycle that keeps going around and around. Gross domestic product is the total value of all goods and services provided in a country over one year. 
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