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Mamont248 [21]
2 years ago
9

As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six

color production, and $.50 for the plastic wire that holds it together at the top. The labor in developing the design was 4 hours of work at $50/hour, and labor is being added to the rest of the fixed costs of $500.00. At a price of $15.00 per calendar, how many calendars will Nate need to produce and sell in order to break even (cover all his costs, but not make a profit)
Business
1 answer:
Yanka [14]2 years ago
4 0

Answer:

Break-even units = 66.67 units

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>

<em>The break-even point is calculated as </em>

<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 15- (1+3+0.50) = 10.5

Fixed cost = 500 +( 50× 4) = 700

So the units requited to achieve break-even point:

Break-even point =  700/10.5

                            = 66.67 units

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2 years ago
Analysis of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals
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Answer and Explanation:

The categorization is shown below:

1 Purchase of a patent = Investing activities  as it represents in a negative sign because it is a cash outflow

2 Depreciation expense Operating activities  as it is added to the net income

3 Decrease in accounts receivable =  Operating activities  as it is added to the change in adjustments column

4 Issuance of a note payable = Financing activities  as it represents in a a positive sign because it is a cash inflow

5 Increase in inventory = Operating activities  as it is deducted from the change in adjustments column

6 Collection of note receivable = Investing activities  as it represents in a positive sign because it is a cash inflow

7 Purchase of equipment  = Investing activities  as it represents in a negative sign because it is a cash outflow

8 Exchange of long term assets = Separate non cash activities note  as it does not involved any cash transactions

9 Decrease in accounts payable = Operating activities  as it is deducted from the change in adjustments column

10 Payments of dividend =  Financing activities  as it represents in a negative sign because it is a cash outflow              

4 0
1 year ago
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors and 5% are informed traders.
mojhsa [17]

Answer: a. 11.5%

Explanation:

Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.

Using the Capital Asset Pricing Model to calculate expected return.

Er = Rf + b( Rm - Rf)

Er = Expected return

Rf = Risk Free Rate

b = Beta

Rm = Market Return.

The Expected Return for the Informed Investors is,

= 4% + 1.4 ( 10% - 4%)

= 4% + 1.4 ( 6%)

= 12.4%

With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.

3 0
1 year ago
Dan saves a portion of his income in an interest-earning account. In the loanable funds market, Dan is b. John owns a pizzeria a
Ksju [112]

Answer:

Check the explanation

Explanation:

a) Dan is a "Supplier" of funds.

b) Jon is a demanded of funds.

c) Savers save more when the real interest rate is "increase" and the supply of the loanable fund slopes "upward".

d) Borrowers like JOn are likely to borrow more when the interest rate is "decreasing " adn therefore, the demand for loanable funds slope "Downward".

7 0
2 years ago
A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.
mash [69]

Answer:

organizational chart

Explanation:

Every organisation is composed of an hierarchical setup that outlines the tasks and responsibilities that each employees and workers needs to perform according to the heirchical structure.

These structures are laid down on a chart/diagram called organisational chart or organigram. An organisational chart is a picture of the relationships among tasks and those employees given authority to do those tasks.It helps in directing the employees to take the right actions and proper reporting.

3 0
1 year ago
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