BUSINESS COLLEGE

TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price $ 30 Variable cost per unit 6 Fixed costs per year 360,000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.

Answers

Answer 1
Answer:

Answer:

Instructions are below.

Explanation:

Giving the following information:

Unit sales price $ 30

Variable cost per unit 6

Fixed costs per year 360,000

To calculate the contribution margin ratio, we need to use the following formula:

Contribution margin ratio= contribution margin / selling price

Contribution margin ratio= (30 - 6) / 30

Contribution margin ratio= 0.8

The break-even point in dollars formula is:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point in units= 360,000 / 0.8

Break-even point in units= $450,000

Now, the desired profit is $440,00:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (360,000 + 440,000) / 0.8

Break-even point (dollars)= $1,000,000

Finally, the margin of safety:

Sales= 60,000*30= $18,000,000

Margin of safety= (current sales level - break-even point)

Margin of safety= 18,000,000 - 450,000

Margin of safety=  $17,550,000

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The net income reported on the income statement for the current year was $250,771. Depreciation recorded on fixed assets and amortization of patents for the year were $35,093 and $10,838, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:End Beginning Cash: $50,000 $60,000Accounts receivable: 112,000 108,000Inventories: 105,000 93,000Prepaid expenses: 4,500 6,500Accounts payable- (merchandise creditors): 75,000 89,000What is the amount of cash flows, from operating activities, reported on the statement of cash flows, prepared by the indirect method?

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced? a.$12 b.$130,000 c.$200,000 d.$175,000

Answers

Answer:

The correct answer is D.

Explanation:

Giving the following information:

The fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced.

Total fixed costs= 7*25,000= 175,000

Total fixed costs= 5*35,000= 175,000

Fixed costs= $175,000

Question Help The production demand for widgets for a​ 250-workday year is​ 7,500 units. Ordering costs are​ $25.00 per order and carrying costs are​ $9.00 per unit per year. Four days must be allowed between order placement and order receipt. What is the reorder​ point, assuming known and constant​ variables?

Answers

Answer:

120

Explanation:

Data provided in the question:

Number of workdays in a year = 250

Demand, D = 7,500 units

Ordering costs, F =​ $25.00 per order

Carrying costs, C =​ $9.00

Lead time = 4 days

Now,

Reorder point = Lead Time in days × Average Daily Demand

also,

Average Daily Demand = Demand ÷ Number of workdays in a year

= 7500 ÷ 250

= 30

Thus,

Reorder point = 4 × 30

= 120

Jolsan Technologies had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 4,500 hours and cost $24,000 in materials and equipment usage. Labor cost is charged at $20 per hour. The prime contractor has now approached Jolsan Technologies and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 6.4 and Exhibit 6.5. What will the last unit cost to build

Answers

Answer:

$73,600

Explanation:

A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph

The last unit will be 22nd unit .

Using learning curve table ,

Time required to build 22nd unit = 3125.49 hours

labour cost to build 22nd unit (  $20 per hour ) = $20 x $3125.49

labour cost to build 22nd unit = $62509.80

Using learning curve table ,

material and equipment cost to build 22nd unit = $11090.67

Therefore,

total cost to build the last unit = Labour cost + Material and equipment cost  total cost to build the last unit = $62509.80 + $11090.67

total cost to build the last unit = $73600.47

Learning rate for labour hours ( L1) = Time for 2nd unit / Time for 1st unit

Learning rate for labour hours ( L1) = 4500/5000

Learning rate for labour hours ( L1) = 0.90

Learning rate for material and equipment usage

Learning rate for material and equipment usage  = Material and equipment cost for 2nd item / Material and equipment cost for 1st item

Learning rate for material and equipment usage  = 24000/30000

Learning rate for material and equipment usage  = 0.80 or 80 %  

ank states that its decision to offer home loans at an extremely low initial, but variable, rate is rooted in the idea that all have a right to owning an affordable home. The bank does not state that the loans are packaged in a product sold to another, larger bank that may or may not work with customers in difficult situations. The smaller bank is no longer exposed to the risk of longer-term loans, and makes a large profit. Which moral theory is the bank operating under?

Answers

Answer: Ethical Egoism

Explanation:

The theory of Ethical Egoism posits that people or entities are well within their rights to act in a manner that benefits their best interest and in so doing are being good in their own right.

The small bank acted in such a manner that it left itself unexposed to risk whilst still making quite a huge profit. The small bank pursued its own interests and so followed the moral theory of Ethical Egoism.

Final answer:

The bank is operating under the moral theory of Moral Egoism. It acts in its own best interest by making large profits off the home loans and offloading the long-term risk.

Explanation:

The bank's actions seem to align with the Moral Egoism theory. This theory suggests that an entity, in this case, the bank, acts in its own best interest. Offering home loans at extremely low initial rates turns in large profit for the bank, which is its main interest. However, offloading the risk of these loans onto another bank marks the bank's primary focus on their well-being rather than the consequences for their customers in the long run. These customers may struggle if the larger bank they deal with lacks flexibility in difficult situations.

Learn more about Moral Egoism here:

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What role should government play in a free market economy?

Answers

Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.

Answer: Stabilize the economy

Explanation:

Rayya Co. purchases a machine for $159,600 on January 1, 2019. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2023, during its fifth year of service.Prepare entries to record the partial year’s depreciation on July 1, 2023, and to record the sale under each seperate situation. (1) The machine is sold for $79,800 cash. (2) The machine is sold for $67,032 cash.

Answers

Solution and Explanation:

Depreciation expense is calculated as follows:

Depreciation expense = Cost of machine minus residul value divide useful life of asset

= (159600 - 0) / 8 = 19950

Thus, annual depreciation expense is $19950

Partial year depreciation expense = Anuual depreciation multiply period

= 19950 mulitply 0.5 = $9975

Thus, partial depreciation expense for the 01st january 2023 to July 1, 2023 is $9975

the jorunal entry is as follows:

Depreciation account Dr.    9975 ($)

Accumulated depreciation Cr.   9975 ($)

1. if machine is sold for $79800 cash

Cash                                     79800

Accumulated depreciation   89775

         gain on sale of machinery       9975

         Machinery                                   159600

2. If machine is sold for $67032

Cash                                     67032

Accumulated depreciation   89775

loss on sale of machinery       2793

         Machinery                                   159600
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