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2 years ago

Which of these boxes of cereal has the LOWEST unit price?

Business

1 answer:

marshall27 [118]2 years ago

5 0

Answer: Cereal B

Explanation:

• Cereal A costs $3.20 for a 16 oz. box. The cost per oz will be:

= $3.20/16

= $0.2 per ounce

• Cereal B costs $5.00 for a 32 oz. box. The cost per oz will be:

= $5.00/32

= $0.15625 per ounce

• Cereal C costs $2.50 for a 10 oz. box. The cost per oz will be:

= $2.50/10

= $0.25 pee ounce

• Cereal D costs $4.50 for a 8 oz. box. The cost per oz will be:

= $4.50/8

= $0.5625 pee ounce

Therefore, the box of cereal that has the lowest unit price is box B.

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Nofly corporation sells three different models of a mosquito "zapper." model a12 sells for $50 and has variable costs of $35. mo

Vsevolod [243]

The first step you need to do to solve this problem is to calculate the contribution margin per unit for each model:

Model a12 b22 c124

Sales Price per unit 50 100 400

Less: Variable Cost per unit 35 70 300

Contribution Margin per unit 15 30 100

The next step is to calculate the weighted-average contribution margin per unit for the sales mix using the following formula:

Model a12 CM per Unit × Model a12 Sales Mix Percentage
+ Model b22 CM per Unit × Model b22 Sales Mix Percentage
+ Model c124 CM per Unit × Model c124 Sales Mix Percentage
= Weighted Average Unit Contribution Margin (WACM)

Contribution Margin per unit 15 30 100

X Sales Mix Percentage 60% 15% 25%

WACM 9 4.5 25

Weighted Average Unit Contribution Margin (sum) 38.5

The next step is to find the break-even point using the WACM.

Total Fixed Cost $269,500 ÷ Weighted Average CM per Unit $38.50 Break-even Point in Units of Sales Mix 7,000

The next step is to calculate the number of units of each model at break-even point

Model a12 b22 c124 Sales Mix Ratio 60% 15% 25% × Total Break-even Units 7,000 7,000 7,000 Product Units at Break-even Point 4,200 1,050 1,750

7 0

2 years ago

Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to

spin [16.1K]

Answer:

The difference between two WACC is 1.2%.

Explanation:

As we know that

WACC = Ke * Ve / (Ve + Vd (1-Tax)) + Kd * Vd*(1-tax) / (Ve + Vd*(1-Tax))

Using the Book Value Method:

WACC = 14% *$65 / ($65m + $45m (1-40%))

+ 6% *$45m*(1-.4) / ($65m + $45m (1-40%))

WACC = 10% + 1.8% = 11.8%

Using the market value method:

Market Value of Common Stock = Common Shares * Market value per share

Market Value of Common Stock = 10 million * $22.5 per share = $225m

WACC = 14% *$225 / ($225m + $50m (1-40%))

+ 6% *$50m*(1-.4) / ($225m + $50m (1-40%))

WACC = 12.35% + 0.7% = 13%

The difference between two WACC is 1.2%.

4 0

2 years ago

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a

Varvara68 [4.7K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company has a ball that sells for $25.

Unitary variable cost= $15.00

Fixed expenses= 426,000

The contribution margin ratio is the contribution margin expressed as a percentage. It is the percentage of sales available to cover the fixed expense. It is calculated using the following formula:

Contribution margin ratio= (selling price - unitary variable cost)/selling price

Contribution margin ratio= (25 - 15)/25= 0.4

Break-even point (units)= fixed costs/ contribution margin

Break-even point (units)= 426,000/10= 42,600 units

The degree of operating leverage helps to determine how income changes in response to change in sales.

Degree of operating leverage= total contribution margin / (total contribution margin - fixed cost)

Degree of operating leverage= (62,000*10) / [(62,000*10) - 426,000]

Degree of operating leverage= 3.20

6 0

2 years ago

Fizzy Corporation uses the equity method to account for its 25% investment in Organic Juices Company, for which it paid $10 mill

Rasek [7]

Answer:

a. Favorable leaseholds with an 8-year life

Options:

b. Technology rights with a 3-year life

c. Bottler franchise rights with indefinite life

d. Goodwill

Explanation:

We should notice the income recognize is the 25% of the company's income thus, there is no depreciation nor amortization.

a. Favorable leaseholds with an 8-year life

A favorable leaseholds because the market rate changes when performing the acquisition of the 25% would make for this but, will be amortized over an 8 years spawn Hence is guaranteed to not the cause of the 10,000,000 extra as it should decrease the income of 500,000 which is not what happened.

b.- and intangible which isn't recognize in the company's firm can also generate this difference and be eliminate after 3-years thus is a viable option

c.- the franchise right will still be there but, the valuation of them can change. The franchise while it is indefinite It can lose their market value (imagine a franchise of candels after electricity is invented) Thus, it could be or not.

d.- The goodwill could be checked for imparment and eliminated before the 5 years period or not require a journal entry that year.

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2 years ago

Which of the following is an example of typosquatting? Group of answer choices A start-up investment company assumes the online

TiliK225 [7]

Answer:

An environmental support group creates a spoof of the advertisement of a popular beverage company, highlighting its degradation of the environment by releasing waste products into the water bodies near its bottling plant.

Explanation:

An example of typosquatting is an environmental support group creates a spoof of the advertisement of a popular beverage company, highlighting its degradation of the environment by releasing waste products into the water bodies near its bottling plant.

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1 year ago