BUSINESS COLLEGE

Gitli Company sells its product for $ 55 and has variable cost of $ 30 per unit. The total fixed costs are $ 25 comma 000. What will be the effect on the breakeven point in units if variable cost increases by $ 10 due to an increase in the cost of direct​ materials? (Round your answer up to the nearest whole​ unit.) A. It will decrease by 667 units. B. It will increase by 167 units. C. It will decrease by 167 units. D. It will increase by 667 units.

Answers

Answer 1
Answer:

Answer:

D. It will increase by 667 units.

Explanation:

The calculation of break-even point is shown below:-

Contribution Per Unit (before increase in Variable Cost) = Unit sale price - Unit Variable Cost

= $55 - $30

= $25

Break-Even (Units) = Fixed Cost ÷ Division Contribution per unit

= $25,000 ÷ $25

= 1,000

New Variable Cost per unit = $30 + $10 (Increase in Direct material cost) = $40

Selling Price = $55

New Contribution per unit = $55 - $40 = $15

New Break-Even (Units) = Fixed Cost ÷ New Contribution per unit

= $25,000 ÷ $15

= 1,667

Increase in Break-Even Units(after increase in D.M cost) = New Break even point - Old Break even point

= 1,667 - 1,000 units

= 667 units

Therefore, The Break even points units will increase by 667 units, if the D.M cost increases by $10 per unit.

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Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.

Answers

Answer: See explanation

Explanation:

Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:

= $15.40 × 100/(100 + 8)

= $15.40 × 100/108

= $1540/108

= $14.26

Sales tax will be:

= $15.40 × 8%

= $15.40 × 8/100

= $15.40 × 0.08

= $1.23

Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks totaling $64,900. The June bank statement shows that $37,600 in checks cleared the bank in June. A check from one of Harris Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Harris Company's June bank reconciliation should be ____.

Answers

Answer:

$42,700

Explanation:

The presentation of bank reconciliation is shown below:-

Check outstanding in June beginning     $15,400

Add: Check issued                                     $64,900

Total check to be cleared                          $80,300

Less: Check cleared                                     $37,600

The Outstanding amount of checks issued $42,700

The project sponsor has asked Franz to hold a kickoff meeting for their project. What is the purpose of a kickoff meeting?

Answers

Answer:

A kickoff event's objective is to formally tell-all project stakeholders that the project has started. It introduces the team and assists them in understanding the project's requirements, history, and individual duties.

Explanation:

You would like to retire in 30 years. The expected rate of inflation is 2% per year. You currently have a standard of living that requires $7940 of monthly expenses. Assuming you want to maintain the same standard of living in retirement, what are your monthly expenses expected to be the first year of retirement

Answers

Answer:

You would need $14,382.21 to maintain your purchasing power.

Explanation:

Giving the following information:

You would like to retire in 30 years. The expected rate of inflation is 2% per year. You currently have a standard of living that requires $7940 of monthly expenses.

The inflation rate has the same intrinsic behavior as an investment with a compounded interest rate.

We need to use the following formula:

FV= PV*(1+i)^n

FV= 7,940*(1.02^30)

FV= $14,382.21

You would need $14,382.21 to maintain your purchasing power.

Zap Power Company pays an annual dividend on its preferred stock of $4.54 per share. The investors have an 8% required rate of return. What is the price of the stock

Answers

Answer:

The price of the stock is $56.75.

Explanation:

This can be calculated using the following formula:

P = d /r ……………………………………… (1)

Where;

P = price of the stock = ?

d = preferred stock dividend = $4.54

r = required rate of return = 8%, or 0.08

Substituting the values into equation (1), we have:

P = $4.54 / 0.08

P = $56.75

Therefore, the price of the stock is $56.75.

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 The costs of facility-level activities are assigned using machine hours. What is (are) the product-level activity(ies)? a.engineering b.inspecting c.setups d.All of these choices are correct.

Answers

All of the given options are unit-level activities. So, option (d) is the correct answer.

What are unit-level activities?

Activities at the unit level are carried out in order to make the product. There are four steps in this manufacturing process:

1. engineering

2. setups

3. machining

4. inspecting

Unit-level activities are dependent on the number of units generated, which means that when the number of units produced increases, more expenditures are allocated.

Engineering, setups, and inspections are all done in batches in this situation, hence they are batch-level operations.

For more information about unit-level activities, refer below

brainly.com/question/15047575

Answer:

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:

Explanation:
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