BUSINESS COLLEGE

ssume the following information: Variable cost ratio 80% Total fixed costs $60,000 What is the volume of sales dollars required to break even

Answers

Answer 1
Answer:

Answer:

Break-even point (dollars)= $300,000

Explanation:

Giving the following information:

Variable cost ratio 80%

Total fixed costs $60,000

To calculate the break-even point in dollars, we need to use the following formula:

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

contribution margin ratio= 1 - 0.8= 0.2

Break-even point (dollars)= 60,000 / 0.2

Break-even point (dollars)= $300,000

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Heller Enterprises reports the following information. 2017 2016 Cash $10,800 $10,600 Operating assets $18,500 $18,800 Operating liabilities $14,100 $14,800 Net operating profit after tax $10,200 $10,300 Weighted average cost of capital 6.0% 6.0% What is the company's residual operating income (ROPI) for 2017? A. $9,072 B. $6,200 C. $9,312 D. $9,960 E. None of the above

A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever new stock is ordered, a buyer must ensure that numbers are correct for stock on-hand and then phone in a new order. The total cost involved to place an order is about $5. RW figures that holding inventory in stock and paying for interest on borrowed capital, insurance, and so on, add up to about $4 holding cost per unit per year.Analysis of the past data shows that the standard deviation of demand from retailers is about four units per day for a 365-day year. Lead time to get the order is seven days.What is the economic order quantity?

Answers

Answer:

Annual demand (D) = 2,400 sets

Holding cost (H) =  $4

Ordering cost (Co) =  $5

EOQ =    √2 x 2,400 x $5

                          $4

EOQ = 77 units

Explanation:

Economic order quantity(EOQ) is the square root of 2 multiplied by annual demand and ordering cost per order divided by the holding cost per item per annum. EOQ is the quantity of stock that is bought each time a replenishment order is placed.

Pro Formas can be structured in many different formats; however, they all help forecast a company’s financial feasibility, breakeven, and profitability. How do you envision this knowledge and skill with pro formas will give you an advantage over other job candidates?

Answers

Answer:

Pro Forma is a financial statement that facilitates comparison of historic data and projections of future predictions.

Explanation:

Pro Forma have different formats but they all do the same thing. They help forecast a company's financial feasibility, break even, and profitability. According to the present situations assumptions about the financial and operating characteristics can be identified.

The results can be assembled in profit and loss projections. Advantage over job candidates is that the past record can be taken into account.

Answer:

How do you envision this knowledge and skill with pro formas will give you an advantage over other job candidates?

Explanation:

If you know about proformas, you are a specialist in companies that issue a profit announcement and make it available to the public, particularly to potential investors. Additionally, you are able to assess the potential value of a proposed change, such as an acquisition or a merger

As a result of several factors, aggregate demand decreased during the Great Depression. One factor would be:

Answers

Answer: decrease in expected income

Explanation:

The Great Depression began due to the crash of the stock market in 1929 which caused fear and millions of investors lost their businesses.

This led to the reduction in consumer spending. Also, there was a reduction in investment which caused industrial output decline and decrease in employment opportunities.

A widely used activity base for developing factory overhead rates in highly automated settings is a.machine hours b.direct materials c.direct labor hours d.direct labor dollars

Answers

Answer:

a. machine hours

Explanation:

Machine hours -

It is the measurement adapted to apply factory overhead to the manufactured goods , is referred to as machine hours .

In the field of machine environment ,

the time consumed for processing the machine is the maximum .

In case there is lesser machines in the company , the labor hours would be more .

Hence , from the given information of the question,

The correct option is a. machine hours  .

Crane uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $11.00 each. During the month, the company made two purchases: 3100 units at $12.00 each and 12200 units at $12.50 each. Crane also sold 12700 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month

Answers

Answer:

$151,673

Explanation:

Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period.

Description                   Units       Rate                   Value    

Beginning Inventory     7,400    $11.00                 $81,400

Purchases                     3,100     $12.00                $37,200

Purchases                     12,200   $12.50               $152,500

Total  Inventory            22,700   $11.94273128    $271,100

Sale                               12,700    $11.94273128    $151,673

Cost of Goods Sold = $271,100 x 12,700 / 22,700 = $151,673

What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44; (b) $40; (c)

Answers

Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.

What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (a) $44; (b) $40; (c) $36?

Answer:

Initial worth of brokerage account = 500 × $40 = $20,000

a). if the price changes to $44, then:

worth of brokerage account becomes = 500 × $44 = $22,000

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b). if the price changes to $40, then:

worth of brokerage account becomes = 500 × $40 = $20,000

∴ percentage increase = (20,000 - 20,000) / 20,000 = 0 or no increase.

c). if the price changes to $36, then:

worth of brokerage account becomes = 500 × $36 = $18,000

∴ percentage increase = (18,000 - 20,000) / 20,000 = 10% decrease
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