BUSINESS COLLEGE

A new aluminum part production facility opened for business, selling products for $9,000 each. The rent on the facility building is $5,000/month and additional utilities cost $15,000/month. The production line is open 24 hours every day of the month (calculate with 30 days per month). Each day has three 8-hour shifts with 10 workers present in each of these snifts. All workers get paid $30/hour. The materials used for your product cost $2,500/product. Your accountant advises you that your corporate taxes are estimated to be $500/product. Calculate, how many products you must make and sell in one month to make a $1,000,000 profit per month.

Answers

Answer 1
Answer:

Answer:

Break-even point in units= 172 units

Explanation:

Fixed costs=  5,000 + 15,000= $20,000

Direct labor cost= [(10*8)*3]*30= $7,200

Tax= $500 per unit

Direct material= $2,500 per unit

To calculate the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (20,000 + 7,200 + 1,000,000) / (9,000 - 500 - 2,500)

Break-even point in units= 172 units

Prove:

Sales= 172*9,000= 1,548,000

Variable costs= 172*3,000= (516,000)

Contribution margin= 1,032,000

Fixed costs= 27,200

Net income= 1,004,800

Related Questions

Consider the following spreadsheet. The objective is to minimize the total cost of assigning jobs to machines. A job can be assigned to only one machine and a machine can be assigned only one job. All jobs must be assigned. Cells B3:F7 contain the assignment costs of jobs to machines. Cells B12:F16 contain the decision variables. a) What formula should be placed in cell I3
On September 1, 2020, Vaughn Manufacturing issued a note payable to National Bank in the amount of $1500000, bearing interest at 8%, and payable in three equal annual principal payments of $510000. On this date, the bank's prime rate was 7%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Vaughn should record accrued interest payable of:
Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.
During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions. Required:Draw the journal entry.
Telfer, Inc. reported net income of $2.3 million in 2020. Depreciation for the year was $157,100, accounts receivable decreased $329,900, and accounts payable decreased $302,000. Compute net cash provided by operating activities using the indirect method.

You need to compose a message to your department explaining that your company is being acquired by a larger company, and you know this news will not be received well by a number of employees. You begin the message with the facts. Then you present an explanation of the situation by focusing on the benefits to the employees.What techniques should you use to cushion the bad news?A. Position the bad news strategically between other sentences.B. Position bad news at the end of the paragraph.C. Accentuate the positive.D. Organize the bad news using bullet points.

Answers

Answer:

The correct answer is letter "A" and "C": Position the bad news strategically between other sentences.; Accentuate the positive.

Explanation:

The objective of the message must be to provide the benefits over the disadvantages of the company being acquired by a large firm. The disadvantages can be provided in between sentences to rest importance but the advantages must be highlighted at every moment to give a positive impression of the acquisition to the employees.

When Apple introduced its iPhone 11 with Slofie (slow-motion selfie) capability and a high price tag, it used_______ to avoid direct competition with Samsung,
Google, and others.

Answers

Answer:

trademark

Explanation:

When the announcement was made about the iPhone 11's new Slofie (slow-motion selfie) capability, Apple also said it had applied for a US trademark on Slofie.

Note, a trademark is a legally issued right for a symbol, phrase, or word to be used to denote a specific product or service, thus it gives a right of ownership to the trademark applicant. Therefore, it limits direct competition from others.

Answer:

Trademark

Explanation:

A trademark is an intellectual property which consists of a particular design aimed at identifying a product as being from a particular source.

Once a trademark is established on a product other companies will be unable to use that technology nor design without purchasing rights to use the trademark.

Apple first introduced Solfie which is a name coined for slow motion selfie on their iPhone 11.

In order to avoid competition with Samsung, Google, and others they trademarked Slofie thereby preventing competitors from using similar technology

In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a(n) _____ responsibility level. Group of answer choices

Answers

Answer: legal

Explanation:

The Environmental Protection Agency (EPA) was established in so that both human and the environmental health can be protected.

Based on the information given in the question, the companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a legal responsibility level. It should be noted that the law will have to be obeyed by the business at this legal responsibility level.

On October 1, Eder Fabrication borrowed $66 million and issued a nine-month, 8% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Answers

Answer:

Explanation:

The adjusting entries are shown below:

1. Cash A/c Dr $66,000,000

        To Short term notes payable A/c $66,000,000

(Being issue of short term note payable is recorded)

2. Interest expense A/c Dr $1,320,000

        To Interest payable A/c                    $1,320,000

(Being interest is recorded)

The interest amount is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $66,000,000 × 8% × ( 3 months ÷ 12 months)

= $1,320,000

The 3 months is calculated from October 1 to December 31

Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____. Multiple Choice A. laggards
B. lead users
C. early followers
D. intrapreneurs

Answers

Answer:

Letter B is correct. Lead Users.

Explanation:

Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.

For Prof Eric von Hippel, there are four steps in developing Lead Users:

  1. Preparation,
  2. Needs and Trends Identification,
  3. Lead Users Identification, and
  4. Concept Design.

The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.

What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?a.The method used to evaluate the performance of the divisions should be reevaluated.

b.A better divisional performance measure would be the rate of return on investment

c.A better divisional performance measure would be the residual income.

d.None of these choices would be included.

e.All of these choices (a, b & c) would be included.

Answers

Answer:

Option D                      

Explanation:

In simple words, method of performance division is considered to be effective when it depicts a true picture, not because it gives a sound position of the organisation as waned by the managers.

Thus, reticulation should not be done. Also, Divisional performance should be judged by some other aspects like time taken to perform the job or wastage done by them etc.

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