Knowing a process has been tested and works well is valuable to companies as they

If Highway 55 Studios can reduce fixed expenses by , by how much can variable expenses per unit increase and still allow the co

solniwko [45]

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by : $37.25 - $35 = 2.25

8 0

3 years ago

Dependable Appliances, Inc. and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals i

Anuta_ua [19.1K]

Answer:

B) fit for the ordinary purpose for which such goods are used.

Explanation:

An implied warranty of merchantability means that the products sold should fulfill an ordinary buyer's expectations and should be fit for the purpose intended.

All products carry an implied warranty of merchantability unless expressly disclaimed or identified as a sale "with all faults" or "as is".

6 0

3 years ago

If Jordan makes only the minimum monthly payments in March, April, and May, what will his balance be after he makes the minimum

Mariulka [41]

Answer:

b. $988. 97

Explanation:

6 0

2 years ago

The risk-free rate of return is 2.5 percent; the expected rate of return on the market is 7 percent. Stock X has a beta coeffici

zvonat [6]

Answer:

Stock is overpriced/ overvalued.
Sell if you own it.
Don't buy if you don't.

Explanation:

Use CAPM to find the required return on the stock:

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 2.5% + 1.3 * (7% - 2.5%)

= 8.35%

Price based on Constant Dividend Growth Model (CDGM):

Price = Next dividend / (Required return - growth rate)

Next dividend = 1.40 * ( 1 + 4%)

= $1.456

Price = 1.456 / (8.35% - 4%)

= $33.47

<em>Stock is selling for $35. It is overvalued. Don't buy the stock. Sell if you have the stock. </em>

4 0

2 years ago

Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October:

Alex73 [517]

Answer:

Equivalent units of Production = 46500 & 37800

Explanation:

At the start of October, Clonex Labs inc, started with 385000 units into production and at the end of the month it had completed 409000 units this means the difference between 409000 and 385000 is the number of units transferred to the next department (i.e 24000), now that we have computed this, we find ending work-in-process as follows:

Clonex Labs, Inc. Materials Conversion

Units transferred to the next department: 24000 24,000

Ending work in process :

Materials : 30000x75% 22500

Conversion : 30000x46% 13800

------------- -------------

Equivalent units of Production = 46500 37800

========= ========

3 0

3 years ago