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1 year ago

What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes?

1 answer:

5 0

<span>The financial advantage (disadvantage) per quarter of discontinuing the racing bikes are:
droppings segment can be used for maximization of profit by taking into consideration of contribution margin.
retaining segments are used to retain the product for the maintenance. </span>

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Brief Exercise 5-8 Cullumber Company has a unit selling price of $630, variable costs per unit of $300, and fixed costs of $327,

IRISSAK [1]

Answer:

(a)

Mathematical Equation for break-even

F = QP - QV

Where

F = fixed cost

Q = Break-even quantity

P = Selling price

V = Variable cost

F = Q ( P - V )

Q = F / ( P - V )

Q = $327,030 / ( $630 - $300 )

Q = $327,030 / $330

Q = 991 units

(b)

Contribution Margin = Price per unit - Variable cost per unit

Contribution Margin = $630 - $300 = $330

Break-even Point in Units = Fixed Cost / Contribution margin per unit

Break-even Point in Units = $327,030 / $330 = 991 units

Explanation:

Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.

Contribution per unit method use the contribution of each unit to calculate the break-even point.

5 0

2 years ago

On April 1, Griffith Publishing Company received $24,480 from Santa Fe, Inc. for 36-month subscriptions to several different mag

photoshop1234 [79]

Answer:

Dr Unearned Fees, $6,120

Cr Fees Earned, $6,120

Explanation:

Based on the information given we were told that the On April 1, the Company received the amount of $24,480 for 36-month subscription in which the company credited Unearned Fees for the amount received therefore the adjusting entry that the company should be record on December 31 of the first year will be:

Dr Unearned Fees, $6,120

Cr Fees Earned, $6,120

Working:

Amount the company received $24,480 ÷Months of Subscription 36 months

*April to December will give us 9 months

Hence,

$24,480/36*9

=$680*9

=$6,1,20

6 0

1 year ago

Tim spends his income on donuts (D) and coffee (C). Coffee is $2 per cup and donuts are $1 each. Assume that Tim has $10 to spen

stealth61 [152]

Answer:

Optimal number of donuts = 5 Donuts

Optimal cups of coffee = 2.5 cups.

Explanation:

Optimal numbers of donuts and coffee can be calculated as follow

First, we need to determine the budget constraint as below

M = ( P(D) x D ) + ( P(C) x C )

Placig values in the formula

10 = D + 2C

Now make utility function as:

U(D,C) = D0.5 C0.5

Marginal Utility donuts

MU(D) = 0.5D-0.5C0.5

Marginal Utility Coffee

MU(C) = 0.5D0.5C-0.5

The formula for marginal rate of substitution

(MRSD,C)= MU(D) / MU(C) = 0.5D - 0.5C0.5 / 0.5D0.5C - 0.5 = C/D

Now calculate the optimal consumption level

MRSD,C = P(D) / P(C)

C/D = 1/2

D = 2C (Equation 1 )

Placing the value of D resulted from equation 1, in the budget constraint we as below

10 = D + 2C

10 = 2C + 2C

10 = 4C

C = 10/4 = 2.5

NOw place the value of C in equation 1

D = 2C = 2(2.5) = 5

Optimal number of donuts = 5 Donuts

Optimal cups of coffee = 2.5 cups.

7 0

1 year ago

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

PolarNik [594]

Dividend is the amount of share in the earnings paid by the company to its shareholders for their investment in the company. So dividend is paid out of the earnings made by the company and it has no relation with the increase or decrease in the value of the stock.

Hence, If a company pays dividends on a stock, it does not mean that the stock has appreciated in value.

4 0

2 years ago

Read 2 more answers

Herbert, an HR manager at Maxtier Inc., hires 50 employees in five months. He used different sources of recruitment to recruit t

Nataliya [291]

Answer:A. cost per hire.

Explanation:Cost per hire is one of the most important metrics in recruitment. Cost per hire measures how much it costs a company to fill an open job position. It includes all the cost associated with filling a position, such as advertising expenses, recruiting events costs, recruitment software fees, relocation expenses, etc.

6 0

1 year ago