Which of the following is not a part of Five M’s?<br> Material<br> Machine<br> Motion<br> Method

Freese Inc. sells a product for 650 per unit. The variable cost is 455 per unit, while fixed costs are 4,290,000. Determine (a)

Dvinal [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Freese Inc. sells a product for 650 per unit. The variable cost is 455 per unit, while fixed costs are 4,290,000.

A) To calculate the break-even point both in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 4,290,000/ (650 - 455)

Break-even point in units= 22,000 units

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

Break-even point (dollars)= 4,290,000/ (195/650)

Break-even point (dollars)= $14,300,000

B) Now for a selling price of $655:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 4,290,000/ (655 - 455)

Break-even point in units= 21,450 units

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

Break-even point (dollars)= 4,290,000/ (200/655)

Break-even point (dollars)= $14,049,750

3 0

2 years ago

Read 2 more answers

(look at the graph)

stealth61 [152]

Answer:

a) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Luxland? explain.

Yes, it is advantageous for Luxland. On its own, Luxland can only produce 1 chip for 1 pretzel, but with trade, 1 pretzel would now be equivalent to 4 chips, representing a net gain of 3 chips.

b) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Leanderland? explain.

No, trade would not be advantageous. We can see than domestically, Leanderland can produce 2 pretzels for every chip, because the graph shows that 4 chips are equivalent to 8 pretzels for this nation.

For trade to be advantageous, Leanderland should obtain at least 9 pretzels for the 4 chips.

3 0

2 years ago

Over the past year, productivity grew 2%, capital grew 1%, and labor grew 1%. If the elasticities of output with respect to capi

Rainbow [258]

Answer:

The output growth rate is 3%.

Explanation:

Use the growth accounting equation as follow

ΔA% = ΔY% - αΔK% - βΔL%

Where

∆A = change in productivity = 2%

∆K = growth in capital =

∆L = growth in labor =

α = elasticity of capital = 0.2

β = elasticity of labor = 0.8

∆Y = change in output = ?

Placing values in the formula

2% = ΔY% - ( 0.2 x 1% ) – ( 0.8 x 1% )

2% = ΔY% - 1%

ΔY% = 2% + 1%

ΔY% = 3%

Hence, the output growth rate is 3%.

7 0

2 years ago

On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at

OLEGan [10]

Answer:

a. Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

b. $33,600

Explanation:

Depreciation is the systematic allocation of cost to an asset. It is given as

Depreciation = (Cost - salvage value)/estimated life

When accumulated over time, it is known as accumulated depreciation which is deducted from the cost to get the carrying amount of the asset.

Depreciation

= (100000 - 10000)/6

=$15,000

Between 2015 and start of 2019 is 4 years hence

accumulated depreciation at start of 2019

= $15,000 × 4

= $60,000

Net book value = $100,000 - $60,000

= $40,000

If the asset life is to be extended by 3 years, the remaining useful life changes from 2 to 5 years.

New depreciation rate

= (40,000 - 8000)/5

= $6,400

To record this for 2019,

Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

The book value of the equipment at the end of 2019

= $40,000 - $6,400

= $33,600

4 0

2 years ago

Jay received the following fair market value amounts during the current year: Interest on Montgomery County bonds (used to build

UNO [17]

Answer:

$300

Explanation:

Given that :

Jay received the following fair market value amounts during the current year:

Interest on Montgomery County bonds

(used to build a bridge) $100

Interest on U.S. Treasury notes $200

Gain on sale of Montgomery County bonds $300

Common stock dividend in IBM Corporation

- common stock (no cash option) $400

From the above amounts that Jay received during the current year;

The following are free from an obligation and liability imposed as a result of tax.

1. Interest on Montgomery County bonds (used to build a bridge)

2. Interest on U.S. Treasury notes

3. Common stock dividend in IBM Corporation common stock (no cash option)

So; we can say they are not taxable

BUT only Gain on sale of Montgomery County bonds which is $300 only taxable

Thus, The amount of taxable income Jay should report from the above amounts is $300

6 0

2 years ago

Which of the following is not a part of Five M’s? Material Machine Motion Method