Break-Even Point Radison Enterprises sells a product for $103 per unit. The variable cost is $70 per unit, while fixed costs are $217,800. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $110 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $110 per unit units

Answer:

Answer C

Explanation:

Final answer:

One course of action in every decision-making process is the option to do nothing about the issue. This is known as the default option. Decision-making also involves the analysis of pros and cons and contemplating the likely consequences, including the potential negatives of inaction.

Explanation:

When confronted by a situation and facing a decision-making process, one course of action available is to choose to do nothing about the issue. This is sometimes referred to as the default option or maintaining the status quo. Making a decision often involves analyzing the pros and cons, anticipating the likely consequences of each action, and considering ethical frameworks such as Utilitarianism, which focuses on the outcomes that would maximize overall happiness or minimize suffering.

However, it's important to note that choosing to do nothing can also have consequences, and this option should not be confused with having no negative consequences. According to the European Commission, ignoring uncertainty, which includes the potential consequences of inaction, may lead to suboptimal decision-making.

Answer and Explanation:

The preparation of cash budget is given below:-

                                                 Cash Budget

Particulars                               July             August      September

Beginning cash balance $9,200     $8,800       $8,800

Cash receipt from customer  $24,800    $32,800     $40,800

Total cash available                $34,000      $41,600    $49,600

Cash payment                        (29,200)     (30,800)    ($32,800)

Interest on loan 1%                                 (40)              (20)

Preliminary cash balance     $4,800        $10,760       $16,780

Loan repay                             $4,000     (1,960)         (2,040)

Ending cash balance            $8,800        $8,800         $14,740

Loan balance    

At the beginning                      0                 $4,000       $2,040

Additional loan                      $4,000       (1,960)        (2,040)

Loan balance at the end       $4000            $2040          0

A cash budget for Karim Corp. for July, August, and September identifies the need for loans in July and August to maintain the company's minimum cash balance, followed by repayment of all loans in September due to an excess in cash.

To create a cash budget for Karim Corp. for July, August, and September, we need to consider the company's cash balance, cash receipts, and cash payments, including any loans taken or repaid.

For July, the company begins with $9,200. After adding the cash receipts of $24,800 and subtracting the cash payments of $29,200, we end up with a balance of $4,800. However, this falls below the minimum cash balance required of $8,800, so a loan of $4,000 is taken out, costing an additional $40 in interest. So, the ending cash balance for July is $4,840.

Now, August. We start with the ending balance from July, $4,840. After adding cash receipts of $32,800 and subtracting cash payments of $30,800, the balance is $6,840. The company is still below the minimum balance, so it borrows $1,960. Including interest, the ending balance for August is $8,816.

For September, the beginning balance is that of August's ending balance, $8,816. Adding cash receipts of $40,800 and subtracting cash payments of $32,800, we get a cash balance of $16,816. The company is above the minimum balance, so it pays back all the loan, with the final balance for September at $16,816.

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Answer:

Second year :

Nominal rate = 8.15%

Real rate = 5%

Third year :

Nominal rate = 6.00%

Real rate = 4.95%

Explanation:

Nominal return =(Interest + price change) / initial price

Real rate of return = (1 + nominal rate) / (1 + inflation) - 1

Second year:

Nominal return = [53.05 + (1060.90 - 1030)]÷ 1030

(53.05 + 30.90) ÷ 1030 = 0.0815 = 8.15%

Real rate

[(1 + 0.0815) ÷ (1 + 0.03)] - 1

(1.0815 ÷ 1.03) - 1 = 0.05 = 5%

THIRD YEAR:

Nominal return = [53.58 + (1071.51 - 1060.90)]÷ 1060.90

(53.05 + 10.61) ÷ 1060.90 = 0.060 = 6.00%

Real rate

[(1 + 0.060) ÷ (1 + 0.01)] - 1

(1.060 ÷ 1.01) - 1 = 0.0495 = 4.95%

To calculate the real and nominal rates of return on the TIPS bond in the second and third years, divide the total payment in a particular year by the total payment in the previous year and subtract 1, then multiply by 100. The real rate of return is calculated by subtracting the inflation rate from the nominal rate of return.

To calculate the real and nominal rates of return on the TIPS bond in the second and third years, we need to know the formula for the rates of return. The nominal rate of return can be calculated by dividing the total payment in a particular year by the total payment in the previous year, subtracting 1, and multiplying by 100. The real rate of return can be calculated by subtracting the inflation rate from the nominal rate of return.

For the second year, the total payment is $53.05 and the total payment in the previous year is $51.50, so the nominal rate of return is (($53.05 / $51.50) - 1) * 100 = 2.99%. Since the inflation rate is 3% for the second year, the real rate of return is 2.99% - 3% = -0.01%

For the third year, the total payment is $1,125.08 and the total payment in the previous year is $53.05, so the nominal rate of return is (($1,125.08 / $53.05) - 1) * 100 = 2,017.42%. Since the inflation rate is 1% for the third year, the real rate of return is 2,017.42% - 1% = 2,016.42%.

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Answer:

$43,130

Explanation:

Wala Inc.

Cash disbursements = (Variable selling and administrative cost x Number of direct-labor hours) + (Fixed manufacturing overhead less depreciation)

= (4,100 x $4.00) + ($30,140 - $3,410)

=$16,400+$26,730

=$43,130

Answer:

$62,230

Explanation:

The computation of the total combined direct labor cost for the two months is presented below:

   Particulars                                       October          November

A. Budgeted units to be produced     6,400 units   6,300 units

B. Direct labor hour per unit                0.50                   0.50

C. Direct labor rate per hour               $9.80           $9.80

D. Direct labor cost for the month (A × B × C)

                                                             $31,360           $30,870

Therefore the total combined direct labor cost is

= $31,360 + $30,870

= $62,230

We simply multiplied the number of units produced with the direct labor per unit and the direct labor rate per hour so that the direct labor cost could arrive

Answer:

It would decrease by $7,504.

Explanation:

The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.

c ) Teena is not liable because the duty of care was not breached.

Explanation:

Even Teena is responsible for ordering inventory for large sport utility vehicles  which uses great quantities of gasoline. The war in the Middle East happens unexpectedly and that war interrupts the supply of gasoline (oil) to the United States.,this is the main reason for decreasing the demand of large sport utility vehicles.,

Middle east region is the main and largest suppliers of oil in the world ., Here The War is the main reason for the shortage of oil and creates problem to get inventory like gasoline to united states.,Prediction of sudden wars is not a possible one. So in this case Teena is not liable because the duty of care was not breached.

Answer: $2,016

Explanation:

Spending variance is known as the difference between the actual and budgeted amount of a project or good.

When the actual amount exceeds the budgeted amount then the variance is known as UNFAVOURABLE. When it is below the budgeted amount it is FAVOURABLE.

Now, the Actual activity on cleaning equipment and supplies in April was 13 boats.

The Budgeted Activity was 55 boats will be calculated thus,

To calculate the variance therefore, we subtract the cost of making the budgeted activity from the actual one.

Activity Variance = (2,500 + ( 13 boats * 48)) - (2,500 + ( 55 boats * 48 ))

= 3,124 - 5,140

= $2,016

Because the budgeted activity was higher than the actual one, it is FAVOURABLE. Hence the Activity Budget for April was $2,016 Favourable.

Answer:

A. 2.2 cents

Explanation:

The computation of cost per copy for accounting department is shown below:-

Total copies = Purchase + Accounting + Information technology

= $150,000 + $450,000 + $200,000

= $800,000

Cost for accounting department = Accounting ÷ Total copies × New copier

= $450,000 ÷ $800,000 × $17,600

= $9,900

Now, Cost per copy = Cost for accounting department ÷ Accounting

= $9,900 ÷ $450,000

= 2.2 cents

Final answer:

The overhead allocated each time a copy is made by the accounting department of Barnes & Cohen's new copier is 1.76 cents, calculated based on the total cost of the copier and the total expected number of copies it will produce.

Explanation:

To calculate the overhead allocation for each copy made by the accounting department, we need to first understand the total cost of the copier and the total expected number of copies. The copier costs $17,600 and is expected to generate 1,000,000 copies over its lifespan. The overhead cost per copy can be calculated as the total cost divided by the total expected copies, which is $17,600 / 1,000,000 = $0.0176 or 1.76 cents per copy. Since the accounting department's copies are part of the total copies, the overhead allocated each time a copy is made by the accounting department is also 1.76 cents, matching option C).

Answer:

Check the explanation

Explanation:

in solving the question above, we need to first calculate:

∡= 1/hour

∡= 2/hour

Server Utilization(\rho) = 1/2= 0.5

Average Number of people in the system

L= ∡/π-∡

= 1/2-1= 1 person in the system in an hour

Expected money in an hour the customer gets = 32* Number of customers in the system = 32*1= 32

Answer:

The correct answer is $12.5.

Explanation:

According to the scenario, the computation of the given data are as follows:

Dividend = $1

Growth rate = 9%

Rate of return = 17%

So, we can calculate the current value of stock by using following formula:

Current value of stock = Dividend ÷ ( Rate of return - Growth rate )

By putting the value, we get

Current value = $1 ÷ ( 17% - 9%)

= $1 ÷ 0.08

= $12.5

To calculate the income elasticity of demand using the midpoint method, we need to know the initial and final quantities of the good and the initial and final incomes. In this case, Lauren's initial salary is $44,000, and it decreases to $30,000. The initial quantity of outfits purchased is 20, and it decreases to 19. The income elasticity of demand for new outfits is -0.0076, indicating that outfits are an inferior good.

To calculate the income elasticity of demand using the midpoint method, we need to know the initial and final quantities of the good and the initial and final incomes. In this case, Lauren's initial salary is $44,000, and it decreases to $30,000. The initial quantity of outfits purchased is 20, and it decreases to 19.

Using the midpoint method formula:

Income Elasticity = (Q2 - Q1) / [(Q1 + Q2)/2] / (I2 - I1) / [(I1 + I2)/2]

Substituting the values, we get:

Income Elasticity = (19 - 20) / [(20 + 19)/2] / ($30,000 - $44,000) / [($44,000 + $30,000)/2]

Simplifying the expression, we have:

Income Elasticity = -0.053 / $7,000 = -0.0076

Since the income elasticity is negative, it means that outfits are an inferior good for Lauren. The absolute value of the income elasticity is less than 1, indicating that outfits are a basic necessity rather than a luxury.

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Answer:

Cash Dr $10,900

Accumulated depreciation $19,800

Loss on sale of equipment $4,300

            To Equipment $35,000

(Being the sale is recorded)

Explanation:

The journal entry is shown below:

Cash Dr $10,900

Accumulated depreciation $19,800

Loss on sale of equipment $4,300

            To Equipment $35,000

(Being the sale is recorded)

The computation is shown below:

= ($35,000 - $2,000) ÷ 5 years × 3 years

= $19,800

Since the sale is made so we debited the cash for $10,900 and along with it the accumulated depreciation is also debited plus the purchase value of equipment is credited and the balancing figure is transferred to the loss on sale of equipment

Answer: $10,000

Explanation:

I know this question looks like a lot but it isn't. It is simply asking how much gain was made in the cash that was exchanged.

Now we see that the company acquired the building for $50,000 but acquired the mortgage on it of $40,000 and hence paid off the balance of $10,000 to Al.

So the gain was,

Cash in the amount transferred = (fair market value - mortgage)

= $50,000) - $40,000

= $10,000

$10,000 is the gain that Al should recognize as a result of this transaction.

Answer:

a. Direct materials price variance $2,250

b. Direct materials quantity variance - $11,250

c. Total direct materials cost variance - $9,000

Explanation:

a. Direct materials price variance

materials price variance =(AP-SP)×AQ

                                         =($3.00-$2.50)× 4,500 pounds

                                         = $2,250

b. Direct materials quantity variance

materials quantity variance = (AQ-SQ)× SP

                                              = (4,500 pounds - 5,000 pounds)×$2.50

                                              = - $11,250

c. Total direct materials cost variance

Total direct materials cost variance=Direct materials price variance+Direct materials quantity variance

                                                          = $2,250-$11,250

                                                          = - $9,000

Answer:

The rate at which money circulates through an economy.

Explanation:

In Macroeconomics, the term velocity refers to the speed at which money circulates in an economy, and it is a variable in a fundamental macroeconomic equation, the quantity theory of money equation:

M x V = P x T

Which states that the price of goods and services is equal to the amount of money in an economy, or its money supply (M) multiplied by the Velocity of circulation of money, which is in turn equal to price (P) multiplied by the number of transactions (T).

Answer:

Adjusted basis of the 2 plots is $7000

Explanation:

The correct question is as follows;

Determine the Adjusted basis

Rufus owns 12 acres of land he purchased as an investment for $5,000. He spent an additional $37,000 subdividing the land into residential parcels and having utility

lines run to the property. After the subdividing and utility lines had been completed, he gifted two acres of the land to his sister as a wedding present.

Solution

In this question, we are to determine the adjusted basis of land

Please check attachment for table

Kindly note that the basics of 1 acre of land before gifting is $3,500 ($42,000/12). This means the basis of gifted property of two acres is $7000($3,500 * 2)

Answer:

$33,300

Explanation:

The cost of subdividing the land is added to the initial cost of the 12 acres resulting in a basis of $39,960.

The basis of the 2 acres gifted to his sister is therefore:

$6,660 [($39,960÷ 12 = $3,330) x 2]

Thus : reduces the adjusted basis in the 10 remaining acres to $33,300.

Original cost $5,390

Additional costs for subdividing $34,570

Basis before gift $39,960

($34,570+$5,390)

Gift of two acre ($39,960 ÷ 12 = $3,330 x2) (6,660)

Adjusted basis of ten acres $33,300

Answer:

Check the explanation

Explanation:

Journal Entries to be recorded in the books of Partnership accounts

a)Jesse's Investment

Account Name                                           Debit($)             Credit($)

Accounts Receivable(48,000-3600)            44300  

Equipment(Agreed Price)               68,500  

Allowance for Doubtful Debts                                     2500

Jesse,Capital A/c(Balancing Figure)                   110300

b.Tim's Investment

Account Name                                             Debit($)      Credit($)

Cash                                                              22000  

Inventory(At Agreed price)                             48000  

Tim Capital                                                                         70,000

Answer: $175

Explanation:

Here we can see that the business discussion happened only at dinner.

After Dinner they went for entertainment at the Cinema so that amount is not deductible as a business Expense.

The only amount deductible is the $350 for the meal.

Meals with clients are considered to be 50% deductible so solving for that we have,

= 350 * 0.5

= $175

$175 is amount of the expenditures that Holly can deduct as a business expense.

Answer:

D . $506, 693.

Explanation:

The proper cost apportioning method to be used is ratio. ratio is an expression of two or more items in mathematical term expressing the proportional relationship between them

Corporate advertising cost - $825,000

Division A sales revenue -$4,900,000

Division B sales revenue - $ 7,800,000

Total revenue                       $12,700,000

Division Being the higher revenue earner = 7,800,000/12,700,000*825,000

= $506,693

Answer:

Mr and Mrs Mitchell should get it

Explanation:

The reason is that during the Auctioning of the used safe, legal transfer of ownership have took place. The transfer of ownership which is legal and recognizable at law with some consideration with was the $50 has made the transactions successful. The court will call off the ensuing of Mr and Mrs Mitchell also due to be fact that they were not aware of such prior to their transaction of Aution.

However, the $32,000 can be return to the plaintiff if Mr and Mrs Mitchell wishes to do so.

It is not necessary and enforced by the law to return such money, it is at their own discretion.

Answer:

managers become more specialized, enabling them to become more productive

Explanation:

Economies of scale is defined as the benefit a company gains by producing at a larger scale. This can result in increased profit because of lower cost per unit input used, use of technology to increase productivity, borrowing of money at lower interest rate.

When a company increases scale of production managers tend to be more specialised and this increases their effiency and productivity in that aspect. This improves overall productivity in the company

Answer:

c.$36,750

Explanation:

If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:

Operating income = Segment margin - Total cost

                               = $147,000 - $110,250

                               = $36,750

Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.

To find Knickers Corporation's operating income without the Bulls division, subtract the Bulls' segment margin from the current total operating income and add back any direct fixed expenses that would no longer be incurred. The calculated operating income without the Bulls division is $99,750.

In determining the operating income for Knickers Corporation without the Bulls division, we must look at how the elimination of the division will impact the company's finances. Specifically, we should consider only the costs and revenues that will change if the Bulls division is discontinued. The allocated common costs would not be eliminated because these costs are typically corporate overhead and would still be incurred by the company even if the Bulls division was dropped.

The calculation is as follows: Operating income without the Bulls division would be the current total operating income minus the Bulls division's segment margin, but adding back the direct fixed expenses that would be avoided if the division were dropped. Therefore, the operating income without the Bulls division = $178,500 (current total operating income) - $31,500 (Bulls division's segment margin) + $105,000 (Bulls division's direct fixed expenses), resulting in an operating income of $252,000.

Thus, we can conclude that the correct answer would be:
Operating income for Knickers Corporation without the Bulls division = $252,000 - $152,250 (total current segment margin without Bulls' segment margin and adding back Bulls' direct fixed expenses) = $99,750.

Answer:

IRR is 12%

Explanation:

The internal rate of return on the investment can be computed using the IRR formula in excel:

=IRR(values)

The values are the cash flows for the relevant years arranged as shown below:

Years   Cash flows

0             -$104,972

1                $23,000

2               $23,000

3               $23,000

4               $23,000

5               $23,000

6                $23,000

7                $23,000

=irr(values from -$104,972-$23,000 in year 7)

irr=12%

Kindly find attached excel with the computation of IRR as well

The internal rate of return is the rate of return on investment where present value of cash inflows equal the initial investment

Answer:

Explanation:

The picture attached shows the solution to the problem

Eliminating the mountain bike division will result in a loss of sales revenue, but also savings on variable and some fixed costs. The net impact is a further decrease in operating income by $131,500, making it less advantageous to eliminate the division.

To determine the impact on operating income for Soar Incorporated when considering the elimination of its mountain bike division, we need to evaluate the cost savings against the revenue that the division currently generates. The operating loss of the mountain bike division is $5,000, with sales of $1,052,000 and variable costs of $862,000. The fixed costs are $195,000, of which 30% can be eliminated if the division is dropped. Therefore, the savings in fixed costs are 0.30 x $195,000 = $58,500. If the mountain bike division is eliminated, the company would no longer incur its variable costs nor its segment of fixed costs, but it would also lose the division's sales revenue.

The calculation of the operating income impact would be as follows:

The net impact on operating income is thus: $862,000 (saved variable costs) + $58,500 (saved fixed costs) - $1,052,000 (lost revenue) = - $131,500. This implies that eliminating the mountain bike division would decrease operating income by $131,500 compared to the current loss of $5,000, therefore eliminating the division will not be advantageous based on these financials alone.

Answer:

$10,560

Explanation:

For computing the depreciation expense for the second year first we have to find out the depreciation per unit which is shown below:

= (Original cost - salvage value) ÷ (estimated production units)

= ($136,000 - $4,000) ÷ (120,000 units)

= ($132,000) ÷ (120,000 units)

= $1.1 per unit

Now for the second year, the depreciation expense would be

= Production units in second year × depreciation per unit

= 9,600 units × $1.1

= $10,560

The machine's second-year depreciation under the units-of-production method is $10,560.

To determine the machine's second-year depreciation under the units-of-production method, we need to calculate the depreciation per unit and then multiply it by the number of units produced in the second year. Here's the calculation:

Depreciation per unit = (Cost - Salvage Value) / Total Units of Production

Depreciation per unit = ($136,000 - $4,000) / 120,000 units

Depreciation per unit = $132,000 / 120,000 units

Depreciation per unit = $1.10 per unit

Number of units produced in the second year = 9,600 units

Second-year depreciation = Depreciation per unit * Number of units produced in the second year

Second-year depreciation = $1.10 per unit * 9,600 units

Second-year depreciation = $10,560

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Answer:

The answer is:

Lower than 12%

Explanation:

The realized compound yield on this bond must lower than the initial yield of 12%

This lead to what will call reinvestment risk. Reinvestment risk is more likely when interest rates are declining(going down).

When interest rate declines, an investor loses money because the real value of the money or fund will be reduced. And reinvesting the money that was initially at 12 percent interest rate will be lower.

Final answer:

The realized compound yield on a bond, with reinvestment of interest at the coupon rate, will be between the coupon rate and the yield to maturity. Without precise calculations, it's not possible to give an exact number, but the yield will be closer to the coupon rate if the reinvestment rate matches the coupon rate.

Explanation:

The question at hand deals with the concept of bond pricing, yield to maturity (YTM), and investment returns. In the given scenario, a bond with a par value of $1,000, a coupon rate of 10%, and a current price of $850 is considered. Intuitively, if the interest payments are reinvested at the same rate as the coupon rate (which is 10%), the realized compound yield should be closer to the coupon rate than the YTM, since the reinvestment rate is not as high as the YTM (which is 12%).

However, because the YTM is higher than the reinvestment rate, the actual realized compound yield would be somewhere between the coupon and the YTM, but we can't provide a precise value without additional calculations. When it comes to the bonds market value, if the market interest rate is higher than the coupon rate, the bond's price will be below par value as investors would demand a higher return, making the current bond less attractive unless it is sold at a discount.

Answer:

Total Equivalent Units  Materials= 231,000  

Total Equivalent Units  Conversion Costs= 198500

Explanation:

Concord Company

Given

Physical Units

Work in process, May 1 (65%) 60800

Completed and transferred out 181000

Work in process, May 31 (35%) 50000

All materials are added at the beginning of the production process.

Particulars         Units      % of Completion                Equivalent Units

                                      Mat. Conversion Costs     Mat. Conversion Costs

W. I. P, May 31  50,000       100          (35%)             50,000         17500

Completed and

transferred out 181000    100          100                181000           181000      

Total Equivalent Units                                          231,000           198500

The equivalent units are calculated by either adding the beginning work in process and  units started or by adding Ending Wip and completed and transferred units.

Answer:

I'm sorry hun! doesnt look like I know this one