1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 years ago
6

This year Burchard Company s 35,000 units of its only product for $16.00 per unit. Manufacturing and selling the product require

d $120,000 of fixed manufacturing costs and $180,000 of fixed se ng and administrative costs. Its per unit variable costs follow. Materiel 4.00 Direct labor (paid on the basis of completed units) 3.00 Variable overheed costs. 0.40 Variable sel ng and administrative costs 0.20 Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and will not effect product quality or morketebility. Management is considering an increase in the unit soles price to reduce the number of units sold because the factory's output is nearing its annual output copacity of 40,000 units. Two plans are being considered. Under plan 1. the company will keep the price at the current level and sell the same volume os last year. This plan will increase income because of the reduced costs from using the new material. Under plan 2, the company will increase price by 25%. This plan will decrease unit sel by 10%. Under both plans 1 and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the same. 9.09 points Required 1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio" percentage answer to 2 decimal places.) per unit. Plan 1 Plan 2 Sales Variable Costs: Material Direct labor Variable overhead costs Variable S&A costs Total variable costs 0.00 0.00 Contribution margin Plan 1 ontribution mar n ratio Choose Numerator: choose Denominator: Contribution margin ratio Contribution margin ratio Contribution margin per unit Sales per unit reak-even oint in dollars Choose Numerator Choose Denominator Break-even point in dollars Contribution margin ratio Total fixed costs Break-even point in dollars Plan 2 ontribution mar n ratio Contribution margin ratio reak-even nt in dollars Break-even point in dollars
Business
1 answer:
mariarad [96]3 years ago
7 0
What is your question?? I can help you!
You might be interested in
Coache Corporation is considering a capital budgeting project that would require an investment of $120,000 in equipment with a 4
Kaylis [27]

Answer:

a. $44,000

Explanation:

The computation of the total cash flow net of income taxes in year 3 is shown below:

= Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense - income tax expense + depreciation expense

= $310,000 - $230,000 - $30,000 - $30,000 - $6,000 + $30,000

= $44,000

Since depreciation is a non-cash expense so it would be added back to the computation part

The depreciation expense would be

= (Original cost - residual value) ÷ (useful life)

= ($120,000 - $0) ÷ (4 years)

= ($120,000) ÷ (4 years)  

= $30,000

And, the income tax expense would be

= (Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense) × tax rate

= ($310,000 - $230,000 - $30,000 - $30,000) × 30%

= $20,000  × 30%

= $6,000

6 0
3 years ago
Over the last week, you had 50 customers who bought a total of 40 hotdogs at $2.00, 10 grilled cheeses at $4.00, and 5 cheesebur
kobusy [5.1K]

$3.20

Take the total sales divided by total customers.

Sales of hotdogs 40* $2 = $80

of grilled cheese 10* $5 = $50

of cheeseburgers 5 * $6 = $30

Total sales $160/50 customer = $3.20/per customer

4 0
3 years ago
How are old telephone logs, payroll records, minutes of practice management meetings, and canceled checks categorized?
Y_Kistochka [10]

They are categorized by confidential documents. Confidential documents is where documents are being classified or the data is access classified in which the data is sensitive or private and can’t be accessed easily because of the sensitive content that it contains.

8 0
3 years ago
Wowee Appliances is setting up production and distribution facilities in India to meet the growing demand there. The company's e
SpyIntel [72]

Answer: the correct answer is these traits will help the manager persevere through culture shock.

Explanation:

Culture shock.- the feeling of disorientation experienced by someone who is suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

5 0
3 years ago
How is a savings account most useful?
Ksenya-84 [330]

The fourth answer is correct (D).

The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.

However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Prospect Realty Co. pays weekly salaries of $27,600 on Monday for a six-day workweek ending the preceding Saturday. Journalize t
    7·1 answer
  • A florist who has been in business for several years finds himself facing several problems simultaneously. First, he has a large
    11·1 answer
  • Outsourcing and telecommuting are examples of which are work place trend?
    7·1 answer
  • Which of these is NOT considered a critical contextual factor in project management? A. Organizational culture B. Organizational
    13·1 answer
  • Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates
    13·1 answer
  • A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:
    11·1 answer
  • You have $100,000 invested in a 2-stock portfolio. $30,000 is invested in stock with a beta of 1.60 and the remainder is investe
    7·1 answer
  • Which of the following is NOT a part of personal financial planning?
    10·1 answer
  • Describe the technologies that contributed to the development and advancement of the newspaper from small, infrequent circulatio
    8·1 answer
  • A break-even analysis includes operating expenses and total monthly debt payments,
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!