BUSINESS COLLEGE

It costs $1,200 to produce 50 pounds of a chemical and it costs $2,200 to produce 150 pounds. The chemical sells for $15 per pound x is the amount of chemical; y is in dollars. a. Find the cost function. b. What is the fixed cost? c. How many pounds must be sold to break even? d. Find the cost and revenue at the break-even point.

Answers

Answer 1
Answer:

Answer:

a.

C(y) = mx + b

y = cost in dollars

x = amount of chemical

m = per unit variable cost

b = fixed cost

b.

Use High low Method to calculate the Variable cost from the total cost given

Variable Cost = ( Highest activity cost - Lowest activity cost ) / ( Highest Number of Units - Lowest Number of Units )

Variable Cost = ( $2,200 - $1,200 ) / ( 150 - 50 )

Variable Cost = $1,000 / 100

Variable Cost = $10 per unit

Fixed Cost = $2,200 - ( 150 x $10 )

Fixed Cost = $2,200 - $1,500

Fixed Cost = $700

c.

Contribution Per Unit = Price - Variable cost

Contribution Per Unit = $15 - $10

Contribution Per Unit = $5

Break-even point = $700 / $5

Break-even point = 140 Pounds

d.

Revenue = 140 x $15 = $2,100

Cost = 140 x 10 = $1,400

Related Questions

On January 1, Year 1, Hanover Corporation issued bonds with a $57,750 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be:
Selected transactions for M. Coronado, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $11,700 cash in business. 3 Purchased used car for $3,510 cash for use in business. 9 Purchased supplies on account for $585. 11 Billed customers $2,808 for services performed. 16 Paid $410 cash for advertising. 20 Received $819 cash from customers billed on January 11. 23 Paid creditor $351 cash on balance owed. 28 Withdrew $1,170 cash for personal use by owner.1. Journalize the above transactions. Date Account Titles and Explanation Debit CreditJan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28Jan. 2Jan. 3Jan. 9Jan. 11Jan. 16Jan. 20Jan. 23Jan. 28
Prescott expects to produce 225,000 basic models and 225,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model?Estimated overhead cost / Estimated qty of the allocation base= Predetermined OH Basic Model Professional ModelManufacturing overhead assembly 264800 195200Manufacturing overhead packaging 55200 227700Total manufacturing overhead cost 320000 422900
FARO Technologies, whose products include portable 3 D measurement equipment, recently had 17 million shares outstanding trading at $42 a share. Suppose the company announces its intention to raise $200 million by selling new shares.a. What do market signaling studies suggest will happen to FARO’s stock price on the announcement date? Why?b. How large a gain or loss in aggregate dollar terms do market signaling studies suggest existing FARO shareholders will experience on the announcement date?c. What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss?d. At what price should FARO expect its existing shares to sell immediately after the announcement?
Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAND Period Demand F1 F2 1 68 63 66 2 75 70 67 3 70 75 70 4 74 69 72 5 69 70 73 6 72 68 75 7 80 70 77 8 78 74 84 Required:Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate

Carter divorced his wife in the current year. In accordance with the divorce decree, he paid her $15,000 as a property settlement in the division of their net assets. In addition, he paid her $10,000 in partial fulfillment of the annual requirement to pay her $12,000 a year in child support. What amount may Carter deduct on his tax return for the current year

Answers

Answer:

$0 (at least under current laws)

Explanation:

Child support payments are not tax deductible. Even alimony payments made to former spouses are not tax deductible anymore.

Any property settlements resulting from a divorce are not tax deductible either nor are they considered taxable income for the receiving party.

So in this case, until the current law changes, Carter cannot deduct any amount from his tax return.

Changes in real GDP reflect Group of answer choices only changes in prices. only changes in the amounts being produced. both changes in prices and changes in the amounts being produced. neither changes in prices nor changes in the amounts being produced.

Answers

Answer:

Only changes in the amounts being produced  is the correct answer to this question.

Explanation:

Real GDP is the value of goods and services at base year prices so real GDP changes reflect changes in the amounts produced in the economy.

Effective gross domestic product ( GDP) is an inflation-adjusted indicator representing the cost of the goods and economic resources by a nation in a given year (demonstrated in foundation-year prices) and is often referred to as "current prices," "corrected deflation," or "constant currency" GDP.

Final answer:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced.

Explanation:

Changes in real GDP reflect both changes in prices and changes in the amounts being produced. Real GDP is a measure of the total value of goods and services produced in an economy adjusted for inflation. As prices increase, the value of goods and services produced will also increase, resulting in a higher real GDP. Similarly, when more goods and services are produced, real GDP increases as well.

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Western Company is preparing a cash budget for June. The company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $10,000.
Borrow $4,500.
Repay $5,500.
Repay $4,500.
Borrow $5,500.

Answers

Answer:

Borrow $19,500

Explanation:

The movement in the cash balance between the beginning an end of a period may be expressed as

opening balance + cash collection - cash disbursed = closing balance

As such, where the  company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance

= $11,000 + $31,000 - $36,500

= $5,500

If the company is owing the bank $15,000 then the company would still owe

= $5,500 - $15,000

= ($9,500)

If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed

= $10000 + $9500

= $19,500

Fox Co. sold used equipment for a cash amount equaling its carrying amount for both book and tax purposes. Later that year, Fox replaced the equipment by paying cash and signing a note payable for new equipment. The cash paid for the new equipment exceeded the cash received for the old equipment. How should these equipment transactions be reported in Fox's statement of cash flows? Group of answer choices

Answers

Answer:

The correct answer is letter "B": Cash inflow equal to the cash received and a cash outflow equal to the cash paid.

Explanation:

The cash inflow equals to the amount of money received for the old equipment sold and cash outflow equivalent to the money paid for the brand new equipment. The note payable is not a cash outflow, and the cash outflow received should not be decreased.

Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.

Answers

Answer:

a. Jia's cost associated with going out to dinner with her friend

= $58

b. Jia's benefit associated with going out to dinner with her friend

= $47

Explanation:

a) Data and Calculations:

Expected cost of meal =  $40

Tips (20%)                             8

Transport to & from =         10

Total cost of going out = $58

Benefits with going out:

Value of restaurant meal =     $25

Amount Jia is willing to pay = $30

Less of eating at home            ($8)

Total benefits with going out $47

Jia's cost associated with going out to dinner is $58 and her benefits are $55.

To calculate Jia's cost associated with going out to dinner with her friend, we need to add up the cost of the meal, the tip, and the Uber rides. The meal cost is $40, the tip is 20% of the meal cost (0.2 * 40 = $8), and the Uber rides cost $5 each way, so the total cost is $40 + $8 + $5 + $5 = $58.

To calculate Jia's benefits associated with going out to dinner with her friend, we need to consider the value of the restaurant meal and the enjoyment she gets from spending time with her friend. The value of the meal is $25, and Jia is willing to pay $30 just to spend time with her friend, so the total benefits are $25 + $30 = $55.

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A put and a call have the following terms: Call: strike price $50 expiration date six months Put: strike price $50 expiration date six months The price of the stock is currently $55. The price of the call and put are, respectively, $9 and $1. What will be the profit from buying the call or buying the put if, after six months, the price of the stock is $40, $50, or $60?

Answers

Answer:

* Profit from buying the call with strike price of $50 after six months if:

- The stock price is $40: -$9

- The stock price is $50: -$9

- The stock price is $60: $1

* Profit from buying the put with strike price of $50 after six months if:

- The stock price is $40: $9

- The stock price is $50: -$1

- The stock price is $60: -$1

Explanation:

It is useful to recall that the call's buyer has the right but not the obligation to buy an underlying asset at strike price at expiration date; while the put's buyer has the right but not the obligation to sell an underlying asset at strike price at expiration date.

Explanation for each circumstances:

*Profit from buying the call with strike price of $50 after six months if:

- The stock price is $40: Do not exercise the call option as investor can buy from the market at $40 instead at the strike price of $50. Thus, investor will recognize a loss of $9 from buying the option.

- The stock price is $50: Market price is equal to strike price, investor will recognize a loss of $9 from buying the option.

- The stock price is $60: $1. Investor buy at strike price $50, sell in the market for $60 to get profit of $10, minus option price of $9, net gain is $1.

* Profit from buying the put with strike price of $50 after six months if:

- The stock price is $40: Investor buy from market at $40, sell through put option at $50, recognized the profit of $10. Net gain will be determined by further deducting of option price $1, to come at $9.

- The stock price is $50: Market price is equal to strike price, investor will recognize a loss of $1 from buying the option.

- The stock price is $60: Investor ignore the option as it can sell at market price of $60 instead of strike price $50. Net loss is option price $1.
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