answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vinvika [58]
1 year ago
7

Locus Company has total fixed costs of $119,000. Its product sells for $59 per unit and variable costs amount to $45 per unit. N

ext year Locus Company wishes to earn a pretax income that equals 35% of fixed costs. How many units must be sold to achieve this target income level?
Business
1 answer:
ANEK [815]1 year ago
4 0

Answer:

11,475

Explanation:

The targeted pretax income is the difference between the targeted sales and the total expense incurred. The total expense is the sum of the fixed and variable expenses.

The variable expense and sales are a function of the level of activity or units produced and sold.

Pretax income = 35% × $119,00

= $41,650

Let the level of activities be t

59t - 45t - 119,000 = 41,650

14t = 41650  + 119,000

14t = 160,650

t = 11,475

The units that must be sold to achieve this target income level is 11,475

You might be interested in
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were exist325,000 and its yea
Alborosie

Answer:

By how much are customers paying early or late?

  • B) 22.38

Explanation:

Days sales outstanding (DSO) represents the average number of many days it takes a business to collect its accounts receivables.

DSO = (accounts receivables / total credit sales) x 365 days

DSO = ($60,000 / $325,000) x 365 days = 67.38 days

customers are paying late by 67.38 days - 45 days = 22.38 days

8 0
2 years ago
Coca‑Cola and Pepsi are both releasing a new soda at the same time. Each company is fairly well known, and they are both decidin
Leokris [45]

Answer:

Coca Cola dominant strategy is strategy 1.

Explanation:

Dominant strategy is one in which the business adopts such a strategy which benefits it most among all other available alternative strategies. In the given case Coca Cola dominant strategy is strategy 1. This is because Coca Cola will get the highest possible payoff when it selects strategy 1.

3 0
1 year ago
Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
riadik2000 [5.3K]

Answer:

Total cost= $3,595

Explanation:

Giving the following information:

Estimated fixed overehad= $155,000

Estimated variable manufacturing overhead= $3.40 per machine-hour

Estimated machine-hours= 50,000

Job A881:

Total machine-hours 100

Direct materials $645

Direct labor cost $2,300

First, we need to calculate the predetermined overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (155,000/50,000) + 3.4

Estimated manufacturing overhead rate= $6.5

Total cost= direct material + direct labor + allocated overhead

Total cost= 645 + 2,300 + (6.5*100)

Total cost= $3,595

5 0
1 year ago
One of the five criteria for a finance lease specifies that the present value of the lease payments be equal to or greater than:
Rina8888 [55]
Answer: the fair value of the asset should be greater than or equal to 90%

The fair value of a leasee's asset is an important criterion in the decision making of whether to approve a finance lease. Leasee's term of payment should also be greater than 75% of the economic life of the property being leased. 
5 0
1 year ago
Read 2 more answers
A car parts company decides to discontinue the production of its lowest-selling products and instead focuses on its areas of exp
Ludmilka [50]

Answer:

A) Core Competency

Explanation:

Core Competency

Core competency refers to an organisation's strategic advantage over its competitors, it means the capabilities and the resources that a business must find, cultivate and explore in order to have an advantage over its competitors in the same line of business.

In order for an activity to be defined as a business' core competence, that activity must be unique, making it difficult for others to re-produce an it must also produce a unique level of benefit or value for the consumers of the product.

Since the car parts company has innovated a new automobile product with unique value, <u>It has cultivated and explored its core competency </u>

7 0
1 year ago
Read 2 more answers
Other questions:
  • Randy Guerrero wants to buy a home in Atherton, California, where the price of an average house is over $1 million. He is saving
    6·1 answer
  • Dividing an organization’s manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of groupin
    9·1 answer
  • A common excuse for carrying out a morally questionable project is, "If I don’t do it somebody else will." This rationale may be
    13·1 answer
  • Suppose you are 45 and have a $50,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to bui
    11·2 answers
  • A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. Th
    7·1 answer
  • 1. (20 total points) Suppose the demand for a product is given by QD = 50 – (1/2)P.a) (10 points) Calculate the Price Elasticity
    12·1 answer
  • Jordan Broadcasting Company is going public at $50 net per share to the company. There also are founding stockholders that are s
    8·1 answer
  • The ________ theory states that when an aspect of the market makes a transaction (e.g. exporting a product or service) less effi
    7·1 answer
  • Selected data taken from the accounting records of Laser Inc. for the current year ended December 31, are as follows: Balance, D
    15·1 answer
  • It takes 3 minutes to load and 2 minutes to unload a machine. Inspection and packing times total 1 minute; travel between machin
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!