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3 years ago

Individual Problems 5-1

Business

1 answer:

Yuliya22 [10]3 years ago

4 0

Answer and Explanation:

The computation is shown below:

1. The break even price per shirt is

Fixed cost per unit t-shirt is

= $24,000 ÷ 8,000

= $3

And,

Variable cost per shirt = $9

So, the break even price per shirt is

= $3 + $9

= $12

Now if George sells 50% more tshirt then total shirt sell is

= 8000 + 0.5 × 8000

= 12000

So,

Fixed cost per shirt is

= $24,000 ÷ 12000

= $2

So,

Breakeven price per shirt will be

= $2 + $9

= $11

2. The present value of the return is

= 30 ÷ 1.25 + 30 ÷ 1.25^2 + 30 ÷ 1.25^3

= 24 + 19.2 + 15.36

= 58.56 < 80

As the present value is lower than the investment made so the investment is not profitable

3. The investment made in human capital with respect to lawyers would be considered as an after investment that hold-up

Therefore this is a true statement

The total cost of the truck is

TC = $2,500,000 + $200,000 + 4Q

And, The total revenue is

TR = PQ

So, the total profit is

TR = PQ - $2,700,000 - 4Q

Now

PQ - $2,700,000 - 4Q = 0

P = $2,700,000 - 4Q ÷ Q

Assume Q = 100000

So,

P = $2,700,000 - 4 × (100,000) ÷ 100,000

= 26

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Answer:

<u>Flexible budget performance report for the July manufacturing activities</u>

Direct Materials : $62,000

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Regular ($6.00 × 5,000) $30,000

Deluxe ($9.00 × 2,000) $18,000

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Regular ($2.00 × 5,000) $10,000

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Total $120,000

Explanation:

A Flexed Budget is a Master budget that has been adjusted to reflect the Actual Level of Operation.

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3 years ago

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No div

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Answer:

Total Return = 10.45%

Explanation:

To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.

The initial investment in terms of US dollar was of,

Initial Investment in USD = Investment in Pounds * Exchange rate

Initial Investment in USD = 2340 * 1.52

Initial Investment in USD = $3556.8

The current value of the investment in terms of USD is,

Current value of investment in USD = 2440 * 1.61

Current value of investment in USD = $3928.4

The formula to calculate total return is,

Total Return = (Current Value - Initial Value) / Initial Value

So, the total return based on US dollars was:

Total return = (3928.4 - 3556.8) / 3556.8

Total Return = 0.10447 or 10.447% rounded off to 10.45%

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Answer:

So, accounting rate of return = 33 %

Explanation:

given data

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initial cost = $545,000

time = 7 year

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we will get here the accounting rate of return

solution

as we know that accounting rate of return is express as

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put here value and we get

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3 years ago

If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin

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Answer:

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Explanation:

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Cost = 85% of sales

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We know that

Sales = Cost + Profit

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So sales percentage is 100%

Now we use the unitary method to find out the extra sales which would be

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Answer:

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Explanation:

The journal entry is as follows:

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Dr $49,280

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Cr $35,200

_______ Paid in capital in excess of par value ($49,280 - $35,200)

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