How much annual income would you need to have if, using the 28/36 ratio, your maximum allowable recurring debt is $380? a. $16,2
1 answer:
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Answer:
a. $25.50
b. $9,725,000
c. Cash = 8,888.89 units
Accounting = 35,555.56 units
Explanation:
a. Variable cost per unit = material cost + labor cost = $18.50 + $7.00 = $25.50
b. Total cost = Fixed + Variable
Variable = $25.50 350,000 = $8,925,000
Fixed = $800,000
Total = $800,000 + $8,925,000 = $9,725,000.00
c. Cash break even point = (Fixed cost - Depreciation)/Contribution per unit
Fixed cost = $800,000
Depreciation = $600,000
Contribution per unit = $48 (Selling price) - $25.50 (Variable cost) = $22.5
Cash Break even point = ($800,000 - $600,000)/$22.5 = 8,888.89 units
Accounting Break Even Point = Total fixed cost/ Contribution per unit
=$800,000/$22.5 = 35,555.56 units
Final Answer
a. $25.50
b. $9,725,000
c. Cash = 8,888.89 units
Accounting = 35,555.56 units
Answer:
$212.38
Explanation:
In this question, we use the PMT formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $24,000
Future value = $0
Rate of interest = 6.75% ÷ 12 months = 0.5625%
NPER = 15 years × 12 months = 180 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the answer would be $212.38
