Hohner Musikinstrumente GmbH & Co. KG: Break-Even Analysis

Pelicans Ice is a snow cone stand near the local park. To plan for the? future, Pelicans Ice wants to determine its cost behavio

ra1l [238]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Month Number of snow cones Total operating costs

January 6,400 $5,980

February 7,000 $6,400

March 5,000 $5,000

April 6,900 $6,330

May 9,000 $7,000

June 7,250 $6,575

To calculate the fixed costs using the high-low method, first, we need to calculate the unitary variable cost:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (7,000 - 5,000) / (9,000 - 5,000)= $0.5 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 7,000 - (0.5*9,000)= 2,500

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,000 - (0.5*5,000)= 2,500

3 0

2 years ago

According to an article in marketing news, fewer checks are being written at grocery store checkout stands than in the past. to

timofeeve [1]

Given:
check written year 1 year 2 year 3
yes 225 175 125
no 275 325 375

The expected number of shoppers who pay by check in year 1 if there is no difference in the proportion of shoppers who pay by check among the three years is 175.

Each year has 500 customers, and its proportion of customers paying in check gradually decreased from 45% to 25%. If there is no difference in proportion, I am assuming that the data is averaged. Thus, (225+175+125) / 3 = 525 / 3 = 175.

8 0

2 years ago

Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and

Shtirlitz [24]

Answer:

a. Merina's captal is $160,000. Half would be $80,000.

Entry;

DR Merina, Capital ..................................................................$80,000

CR Wayne, Capital ....................................................................................$80,000

(To record purchase of half of Merina Capital)

b.

DR Cash......................................................................$180,000

CR Wayne, Capital.........................................................................$180,000

(To record Wayne investment)

Working

The current Capital amount is;

= 200,000 +160,000

= $360,000

If Wayne joins and adds to this such that he owns 1/3 then;

2/3x = 360,000

x = 360,000/2/3

x = $540,000

Wayne's share would be;

= 1/3 * 540,000

= $180,000

6 0

2 years ago

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The va

klemol [59]

Answer:

Contribution = $35 X 2,00 = $7,000

But it has no warrant of demand therefore this additional contribution can only be realized on sale of 2,00 units.

Explanation:

Provided

Products Bales Tales Wales

Selling Price $55 $78 $32

Less: Variable Cost $20 $50 $15

Contribution per unit = $35 $28 $17

Hours per unit required 5 7 1

Contribution per hour $35/5 $28/7 $17/1

$7 $4 $17

Second highest contribution margin per hour is of Bales, first is of Wales. We need to produce and sale the product with second highest margin per hour that is Bales, but since the first 1,000 units were used to produce goods with highest contribution margin per unit, and provided here is no warrant of its demand, it shall not be produced any further.

Now Wales shall be produced as it has highest contribution margin per hour.

Units produced within 1,000 hours of Wales = 1,000/1 hours = 1,000 units.

Contribution = 1,000 units of Wales X $17 = $17,000.

But it is asked - maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is of Bales in that case

No of units = 1,000/5 = 2,00 units

Contribution = $35 X 2,00 = $7,000

But it has no warrant of demand therefore this additional contribution can only be realized on sale of 2,00 units.

3 0

2 years ago

Gay manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (d1 = $1.25). the stock sells for $32.

Oksi-84 [34.3K]

stock sold per share $32.50 Dividend per share $1.25 Return rate is 10.5% Percentage of Dividend for share is: 32.50* x/100 = 1.25 32.50 x = 1.25*100 x = 125/32.50 thus, x = 3.85 so Dividend percentage is 3.85% to find Growth rate, we have to reduce the dividend percentage from return rate percentage: = 10.5 - 3.85 = 6.65 The equilibrium expected growth rate is 6.65%

6 0

2 years ago