Answer:
may still have a net increase in cash
Explanation:
In the case when the company recognized the net loss so it might be the condition that there is an increase in the cash balance as in the case as the closing balance should be more than the beginning balance of cash
So as per the given question, the above should be the answer and the same is relevant
MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting.
The teacher has offered to buy 1,000 copies of the CD at a price of $5 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $500. A summary of the information related to production of MSI’s current history program follows:
Direct materials $ 1.50
Direct labor 0.60
Variable manufacturing overhead 2.25
Fixed manufacturing overhead 2.00
Total cost per unit $ 6.35
Sales price per unit $ 12.00
Required:
1. Compute the incremental profit (or loss) from accepting the special order.
2. Should MSI accept the special order?
Yes
No
3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.
4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)
Answer:
1. The incremental profit from accepting the special order is $150.
2. Yes, MSI should accept the special order. This is because it will increase profit by $150.
3. The incremental loss from accepting the special order is $350.
4. The special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.
Explanation:
Note that only variable costs are relevant to making decision on a special order. That is, fixed cost is not relevant. Therefore, we have:
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead = $1.50 + $0.60 + $2.25 = $4.35.
We then proceed as follows:
1. Compute the incremental profit (or loss) from accepting the special order.
Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($5 - $4.35) * 1,000) - $500 = $150
Therefore, the incremental profit from accepting the special order is $150.
2. Should MSI accept the special order?
Yes, MSI should accept the special order. This is because it will increase profit by $150.
3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.
Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($4.50 - $4.35) * 1,000) - $500 = ($350), or –$350
Therefore, the incremental loss from accepting the special order is $350.
4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)
This can be calculated as follows:
Modification cost per unit = Modification cost / Units of special order = $500 / 1,000 = $0.50
Special order price = Regular price + Modification cost per unit = $12 + $0.50 = $12.50 per unit
Therefore, the special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.
bank holds $10 for every $100 in deposits. The bank wants to hold $9 for every $100 in deposits. The bank holds desired reserves of $7 comma 000 and actual reserves of $12 comma 000 . What is the actual reserve ratio, the desired reserve ratio, and the excess reserves ?
Answer:
Actual reserve ratio = Money that bank holds per deposit
= 10 / 100
= 10%
Desired reserve ratio = Money banks wants to hold per deposit
= 9 / 100
= 9%
Excess reserves = Actual reserves - desired reserves
= 12,000 - 7,000
= $5,000
You are calculating the volume quantity needed for material that will compact to 95% of its original undisturbed volume. You know that you will need to fill a void with a volume of 1,487 cubic yards. What is the volume of material needed from the borrow pit to equal this amount when fully compacted
Answer:
Volume = 1565.56 cubic yards
Explanation:
The computation of the volume of material required is shown below:
95% × volume = 1,487 cubic yards
Volume = 1565.56 cubic yards
Basically 95% of volume is equivalent to the 1487 cubic yards
So according to this we determined the volume
Hence, the same should be considered
Frederic Taylor applied the scientific method to management . In many cases,this meant measuring a process to determine it optimal possible output .Discuss a time you have seen measurements used to manage a process
Answer:
fg sheriff f hiding fh gay
Consider a country in which most of the productive resources are collectively owned by the state. As this country moves toward a system of private property rights, we can expect economic growth to ________ due to a(n) ________ in productivity
Answer:
Increase ; Upward movement along
Explanation:
In simple words, The greater the range of intellectual interests the greater the motivation to labor, preserve, as well as reinvest, because the more efficient the economy's functioning will be. The more efficiently an economy runs, the further development it produces for any given pool of assets, resulting in upward motion of the productivity function.
Rizio Co. purchases a machine for $9,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $192 discount. Transportation costs of $217 were paid by Rizio. The machine required mounting and power connections costing $664. Another $313 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $245 worth of repairs were made.
Required:
Compute the cost recorded for this machine.
Answer:
$10,642
Explanation:
Computation to determine the cost recorded for this machine.
Amount included in the cost of equipment
Invoice price of machine $9,600
Less: Discount (9600 x 2%) ($192)
Net purchase price $9,408
($9,600-$192)
Freight charges $217
Mounting and power connections $664
Assembly $313
Materials used in adjusting $40
Total cost to be recorded $10,642
Therefore the cost recorded for this machine is $10,642
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be
Answer:
Fixed Cost = $10,000
Variable Costs = $90,000
Explanation:
Variable Cost per unit = $72,000 ÷ 12,000
= $6
Variable Costs at 15,000 units = $6 x 15,000
= $90,000
Fixed Cost (given) = $10,000
Assume each firm within an industry has similar operations and financial structures as the industry as a whole. Which one of these statements related to beta is correct given this assumption?
a. Industry betas are less reliable than firm betas.
b. Firms should use their own betas rather than the industry beta.
c. Betas should be computed on an annual basis.
d. The error in beta estimation for a single security exceeds the error for a portfolio of securities.
e. All firms in the industry will have the same beta.
Answer: D. The error in beta estimation for a single security exceeds the error for a portfolio of securities.
Explanation:
If each firm within an industry has identical operations and thesame financial structures as the industry as a whole, then the error in beta estimation for a single security exceeds the error for a portfolio of securities.
It should be noted that all the firms in the industry will not have the same beta. Also, betas should not be computed on an annual basis. Therefore, the correct option is D.
At February 1, 2022, the balance in Wildhorse Co. supplies account was $3780. During February Wildhorse purchased supplies of $3240 and used supplies of $4320. At the end of February, the balance in the Supplies account should be
Answer: $2,700
Explanation:
The balance in Supplies account at the end of February can be calculated using the formula:
= Beginning balance + Supplies purchased in the month - Supplies used in the month
= 3,780 + 3,240 - 4,320
= $2,700
McBride's Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It can sell each product at the split-off point or process it further in relatively similar processes, so management has decided that the most appropriate method for allocating joint costs is the market value at split-off point. One gallon of cream sells for $15, while one gallon of milk sells for $4. How much of the joint cost is allocated to cream
Answer:
$560
Explanation:
Calculation to determine How much of the joint cost is allocated to cream
Units Selling price Sales value Percentage of sales value Allocated cost
Cream (200*15=3,000) (3,000/5,400 = 56%)
(1,000 x 56% = $560)
Skimmed milk (600*4=2,400) (2,400/5,400 = 44%) (1,000 x 44% = $440)
Total $5,400 100% $1,000
($3,000+$2,400=$5,400)
(56%+44%=100%)
($560+$440=$1,00)
Therefore the joint cost allocated to CREAM is $560
Jamie is single. In 2020, she reported $108,000 of taxable income, including a long-term capital gain of $5,800. What is her gross tax liability
Answer:Jamie's gross tax liability is $19,572.50
Explanation:
Since Jamie is single with taxable income of $108,000 which includes $5,800 long term capital gain.
Therefore $102,200 (108,000 -5,800) will be taxed under normal tax rates and $5,800 would be under long term capital gain tax rate.
With regards the 2020 tax schedule, Since her ordinary income is $102,200, Jamie falls under 24% rate tax bracket under filing for single status.
qd
Tax liability on ordinary income =$14,382.50 plus 24% of any income you made above $84,200
14,382.50 + 0.24 (102,200 - 84,200)
14,382.50 + 0.24 x 18000
= 14,382.50 + 4,320
= $18,702.50
Also, according to her income, longterm capital gain tax applicable in 2020 is 15%
Tax on long term capital gain = 5,800 × 0.15
= $870
Jamie's gross tax liability is $18,702.50 + 870 = $19,572.50
In its recent income statement, Smith Software Inc. reported paying $12 million in dividends to common shareholders, and in its year-end balance sheet, Smith reported $386 million of retained earnings. The previous year, its balance sheet showed $372 million of retained earnings. What was the firm's net income during the most recent year
Answer:
$26 million
Explanation:
Given the above information, net income
= Ending retained earnings - Beginning retained earnings + Dividend paid to shareholders
Ending retained earning = $386 million
Beginning retained earning = $372 million
Dividend paid to shareholders = $12 million
Then,
Net income earnings = $386 million - $372 million + $12 million
Net income earnings = $26 million
Therefore, the firm's net income during its most recent year is $26 million
Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current profit margin is 10% and you expect it to remain constant.
Answer: $37.5 million
Explanation:
The next year's net income for XYZ will be calculated as follows:
Current sales = $300 million
Current Profit margin = 10%
Sales Growth rate = 25%
The next year's sales will be:
= Current Year's Sales × (1 + Sales Growth rate)
= $300 million × (1 + 0.25)
= $300 million × 1.25
= $375 million
Next Year's Net Income will then be:
= $375 million × 10%
= $37.5 million
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Required:
Calculate the equivalent units of conversion.
a. 110,000
b. 140,000
c. 144,000
d. 130,250
e. 165,000
Solution :
UNITS TO ACCOUNT FOR :
[tex]\text{Beginning Work}[/tex] in Process units $ [tex]25,000[/tex]
[tex]\text{Add: Units Started}[/tex] in Process $ [tex]14,000[/tex]
Total Units to account for $ [tex]165,000[/tex]
UNITS TO BE ACCOUNTED FOR:
[tex]\text{Units completed}[/tex] and transferred out $ [tex]135,000[/tex]
[tex]\text{Ending Work}[/tex] in Process $ [tex]30,000[/tex]
[tex]\text{Total Units}[/tex] to be accounted for $ [tex]165,000[/tex]
[tex]\text{Equivalent units}[/tex]
Material cost Conversion
% of completion Units % of completion Units
[tex]\text{Units started}[/tex] [tex]100\%[/tex] $[tex]135,000[/tex] [tex]100\%[/tex] $[tex]135,000[/tex]
and completed.
[tex]\text{Ending Work}[/tex] in Process [tex]100\%[/tex] [tex]30,000[/tex] [tex]30\%[/tex] [tex]9000[/tex]
[tex]\text{Total equivalent units}[/tex] [tex]165,000[/tex] [tex]144,00[/tex]
Therefore, the equivalent units of conversion is [tex]144,000 \text{ units}.[/tex]
If 2 percent growth is your break-even point for an investment project, under which outlook for the economy would you be more inclined to go ahead with the investment: (1) A forecast for economic growth that ranges from 0 to 4 percent, or (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable? What core principle does this illustrate?
Answer: (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.
Core principle 5 - Stability improves welfare.
Explanation:
Based on the information given, I'll be more inclined to go ahead with the investment whereby there is a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.
It should be noted that when there's uncertainty about the future, it leads to the unattractiveness of investment. Here, the core principle illustrated is Core principle 5 - Stability improves welfare.
Chik Chik Company showed the following balances at the end of its first year: Cash $ 3,000 Prepaid insurance 4,700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 22,000 Expenses 17,500 What did Chik Chik Company show as total credits on its trial balance
Answer: $30,400
Explanation:
Accounts with credit balances are revenue, liabilities and stock or equity.
The credit balances above are:
Accounts payable, Notes payable, common stock, revenues,= 2,800 + 4,200 + 1,400 + 22,000
= $30,400
According to the National Association of Colleges and Employers, finance graduates make an average of (µ) $52,402 a year. The standard deviation of annual salaries of finance graduates is (σ) $7,000. A random sample of 100 accounting graduates show that the sample mean salary is $54,390.If we were to increase the sample size (n) from 100 to 144, the z score will:A) increase.B) decrease.C) stay the same.D) be zero.
Answer:
National Association of Colleges and Employers
Therefore, if we were to increase the sample size (n) from 100 to 144, the z score will:
A) increase.
Explanation:
a) Data:
Mean (average) (µ) annual earnings of finance graduates = $52,402
Standard deviation of annual salaries of finance graduates (σ) = $7,000
Sample size of accounting graduates (n) = 100
Sample mean salary = $54,390
If sample size were increased to 144, from 100, what happens to the z score will be:
Calculating z score:
z = (x-μ)/σ
= (54,390 - 52,402)/7,000
= 0.284
Example:
= (58,000 - 52,402)/7,000
= 0.8
b) In statistics, as the sample size is increased from 100 to 144, the sample mean, x, ($54,390) and standard deviation ($7,000) will be closer in value to the population mean, μ, ($52,402) and standard deviation, σ.
Suppose you have $10,000 in savings when the price level index is at 100. Instructions: Enter your responses rounded to the nearest whole number. a. What is the real value of your savings if the price level increases by 6 percent for the year
Answer: $9091
Explanation:
The real value of the savings if the price level increases by 6 percent for the year will be calculated thus:
Real Value = Nominal Value × CPI of previous year / CPI of current year
The CPI of current year will be:
= 100 + (100 × 10/100)
= 110%
Then, the real value will be:
= $10000 × 100/ 110
= $9091
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Using the high-low method and the Millco data above, what is the approximate fixed cost component of the monthly maintenance costs? Group of answer choices
Millco Inc. manufactures electronic parts They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last six months:
Months Machine Hours Maintenance Costs
January 30,000 $67,500
February 40,000 74,500
March 37,500 65,900
April 39,000 68,750
May 42,300 74,000
June 35,000 64,500
Answer:
Millco Inc.
The approximate fixed cost component of the monthly maintenance costs is:
$51,600.
Explanation:
a) Data and Calculations:
Months Machine Hours Maintenance Costs
January 30,000 $67,500
February 40,000 74,500
March 37,500 65,900
April 39,000 68,750
May 42,300 74,000
June 35,000 64,500
High-low:
May 42,300 $74,000 for highest
January 30,000 67,500 for lowest
Difference 12,300 $6,500
Variable costs = $0.53 ($6,500/12,300)
Using May, the total variable cost = 42,300 * $0.53 = $22,419
Fixed cost = $51,581 ($74,000 - $22,419)
or approximately $51,600
XYZ Corporation manufactures air conditioners and has the capacity to manufacture and sell 80,000 units each year. It is currently only manufacturing and selling 60,000 units. The following per unit numbers relate to annual operations at 60,000 units: Per Unit Selling price $ 125 Manufacturing costs: Variable $ 25 Fixed $ 40 Selling and administrative costs: Variable $ 10 Fixed $ 15 A customer would like to purchase 3,000 air conditioners from XYZ but only if they can get them for $75 each. Variable selling and administrative costs on this special order will drop down to $2 per unit. This special order will not affect the 60,000 regular sales and it will not affect the total fixed costs. The annual financial advantage (disadvantage) for the company as a result of accepting this special order from this customer should be:
Answer:
The annual financial advantage is $147000
Explanation:
On June 10, Pais Company purchased $9,000 of merchandise from MacGyver Company, on account, terms 3/10, n/30. Pais pays the freight costs of $400 on June 11. Goods totaling $600 are returned to MacGyver for credit on June 12. On June 19, Pais Company pays McGiver Company in full, less the purchase discount. Both companies use a perpetual inventory system. Journalize perpetual inventory entries. Instructions a. Prepare separate entries for each transaction on the books of Pais Company. b. Prepare separate entries for each transaction for MacGyver Company. The merchandise purchased by Pais on June 10 cost MacGyver $5,000, and the goods returned cost McGiver $310.
Solution :
Pais Company
June 10 Inventory 9000
Accounts payable 9000
June 11 Inventory 400
Cash 400
No entry 0
June 12 Accounts payable 600
Inventory 600
June 19 Accounts payable 8400
Inventory 252 = 8400 x 3%
Cash 8148
McGiver Company
June 10 Accounts Receivable 9000
Sales revenue 9000
Cost of goods sold 5000
Inventory 5000
June 12 Sales return and allowances 600
Accounts receivable 600
Inventory 310
Cost of goods 310
June 19 Cash 8148
Sales discount 252 =8400 x 3%
Account receivable 8400
Bob sells the vegetables he grows in a farmer's market. Bob is a little disorganized and has been looking for a good way to track his sales. If Bob creates a database to track the sales of vegetables, what is the appropriate relationship between orders and products?
Answer:
The appropriate relationship between orders and products is a one-to-many relationship.
Explanation:
A one-to-many relationship simply means that one order by a customer can be for many products, vegetables in this instance. When Bob receives a customer's order for products, the customer may order more than one type of vegetables because customers buying vegetables always love variety. Therefore, the database to track the sales of vegetables may need to track one order to various datasets containing the customer's order.
Based on this model, households earn income when firms __________ purchase goods and services ___________in markets for factors of production. Suppose Caroline earns $625 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Antonio $275 per week to wash cars. Antonio uses $150 to purchase a necklace from Classy's Jewelry Store.
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Event Market for Factors of Production Market for Goods and Services
Caroline spends $10 to get her car washed.
Antonio spends $150 to purchase a necklace from Classy's Jewelry Store.
Antonio earns $275 per week working for Spotless Car Wash.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs.
i. The car wash Caroline receives
ii. The $275 per week
iii. Antonio earns working for Spotless Car wash
The $150 Antonio spends to purchase a necklace from Classy's Jewelry Store
The actual economy is more complicated than the one illustrated in the previous circular-flow diagram of a simple economy
True / False
Answer and Explanation:
Market for Factors of Production:
Antonio earns $275 per week working for Spotless Car Wash.
Market for Goods and Services:
Caroline spends $10 to get her car washed.
Antonio spends $150 to purchase a necklace from Classy's Jewelry Store.
Which of the elements of this scenario represent a flow from a household to a firm?
The $150 Antonio spends to purchase a necklace from Classy's Jewelry Store
The actual economy is more complicated than the one illustrated in the previous circular-flow diagram of a simple economy - false
The circular flow of income represents the flow of economic exchanges between economic agents in the economy. If a household provides the labor factor of production, it is paid and uses the same money to purchase from the same firms that produce goods and services. This is a cycle and actually doesn't get more complex than this in real life, only involves alot more firms or economic agents.
1) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $___million.
2) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $___million.
Answer and Explanation:
The computation is shown below:
a. The interest payment is
= 4% of $100 million
= $4 million
b. The interest expense without interest payment is
= Expenditures incurred without interest payment + interest payment
= $30 million + $4 million
= $34 million
The same should be considered and relevant
A 5-year treasury bond with a coupon rate of 8% (paid semiannually) has a face value of $1,000. What is the semiannual coupon payment
Answer:
$40
Explanation:
Coupon payment = Face value * Coupon rate * 1/2
Coupon payment = $1,000 * 8% * 1/2
Coupon payment = $1,000 * 0.08 * 1/2
Coupon payment = $40
So, the semiannual coupon payment is $40.
In your opinion, how important is it for organizations to enforce internal discipline (e.g., employee termination) in preventing occupational fraud in the workplace
Answer:
There must be well-structured policies and procedures in every organization that are compatible with government laws and that regulate a company's activities and operations.
Compliance with the internal regulations must be implemented and incorporated by all employees, regardless of hierarchical level.
Therefore, when there is any type of non-compliance with organizational standards, such as occupational fraud, this must be corrected in accordance with the provisions of the regulation.
The prevention of fraudulent practices in a company must be carried out through the propagation of ethical behavior that contributes to the formation of an organizational culture aimed at personal development, collaboration and integration of employees.
A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice question. opportunity sunk historical out-of-pocket
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities 11,000 units
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
Required:
The number of units of CK74 that Ruby must sell to break- even is:________.
a. 12,900.
b. 4,577.
c. 7,095.
d. 6,050.
Answer:
Break-even point in units= 12,900
Explanation:
Giving the following information:
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
To calculate the break-even point, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 851,400 / (186 - 120)
Break-even point in units= 12,900
Answer: 12900
Explanation:
From the information given, we'll first calculate the contribution per unit which will be:
= Selling price per unit - variable cost per unit
= $186 - $120
= $ 66
Then, the break even sales in units will be: = Fixed cost/Contribution per unit
= 851,400 / 66
= 12,900
Therefore, the breakeven is 12900
You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx of updated technology to its manufacturing plants, service industry and the medical field in the last three years. This change boosted the growth of the country’s productivity by 75%, yet you see that wages have been very slow to respond to this growth. As you begin to analyze the natural unemployment rate for this time frame, what do you most likely discover?
Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.
Explanation:
The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.
Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.
