Answer:
1. 2,300 units
2. $36,800
3. $39,200
Explanation:
The computation of company’s break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= $9,200 ÷ ($16 - $12)
= $9,200 ÷ $4
= 2,300 units
2. The computation of break-even point in dollar sales is shown below:-
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= $2,300 × $16
= $36,800
Contribution Margin Ratio = (Sales Price Per Unit - Variable Expense Per Unit ) ÷ Sales Per Unit × 100)
= ($16 - $12) ÷ $16 × 100
= $4 ÷ $16 × 100
= 25%
Break Even Sales = Fixed Expenses ÷ Contribution Margin Ratio
= $9,200 ÷ 25%
= $36,800
3. The computation of new break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= ($9,200 + $600) ÷ ($16 - $12)
= $9,800 ÷ $4
= 2,450 units
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= 2,450 units × $16
= $39,200
Answer: Radically Innovative change.
Explanation: Beam Satellite Network is implementing a radically innovative change in their business strategy.
A radically innovative change involves applying new procedures, techniques and technology into a business to beat other existing businesses that are similar.
Answer:
$1,900
Explanation:
Calculation to determine what the bad debt expense for the year is:
Accounts Receivable Uncollectible percentages 1-30 days $40,000* 1.5% =$600
31-60 days $10,000 *8.0% =$800
61-90 days $6,000 *15.0% =$900
Total $2,300
Bad debt expense =$2,300-400
Bad debt expense =$1,900
Therefore Based on this information, the bad debt expense for the year is:$1,900
Answer: Total deduction= $2,528
Explanation:
25000*0.2*0.8=4,000
Auto maximum = $3,160
Total deduction = 3,160*0.8
Total deduction= $2,528