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Firlakuza [10]
2 years ago
12

Taylor Company produces two products, X and Y, which account for 70% and 30%, respectively, of total sales dollars. Contribution

margin ratios are 60% for X and 30% for Y. Total fixed costs are $140,000. What is Taylor's break-even point in sales dollars? (Note: Round answer to the nearest dollar.)
Business
1 answer:
Hatshy [7]2 years ago
3 0

Answer:

BEP $274,509.8

Explanation:

Product X sales weight 70%

Product Y sales weight 30%

X CMR 0.60 x 70% sales weight = 0.42

Y CMR 0.30 x 30% sales weight product Y = 0.09

Contribution mix 0.51

<u />

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

140,000 fixed cost / 0.51 = 274,509.8

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Brief Exercise 6-02 Tamarisk, Inc. took a physical inventory on December 31 and determined that goods costing $190,000 were on h
Rudiy27

Answer:

The amount should Tamarisk report as its December 31 inventory is $252,000

Explanation:

The computation of the ending inventory is shown below:

= Stock on hand + goods purchased from Sheffield Corp + goods sold to Wild horse Co.

= $190,000 + $29,000 + $33,000

= $252,000

We considered all the amounts which are given in the question i.e FOB destination and FOB shipping point which is added to the physical inventory on hand.

4 0
2 years ago
Insurance premiums are calculated by analyzing clients’ potential level of risk. Which of the following drivers would most likel
siniylev [52]

Answer:

The correct answer is letter "B": Experienced driver with a good driving record.

Explanation:

Insurances do take into consideration the level of risk individuals represent according to the type of coverage they apply for. While talking about car insurance, <em>an experienced driver with a good driving record represents a minimum risk for the company, thus, the individual will likely pay a lower premium than someone who has had several vehicle accidents with a negative driving history.</em>

7 0
2 years ago
Four investors bought a real estate asset together and decided to divide the profits equally. Investor A invested $200,000; inve
Charra [1.4K]

Answer:

$150,000

Explanation:

If four investors bought a real estate asset together and decided to divide the profits equally.

Investor A invested $200,000;

investor B invested $500,000;

investor C invested $800,000;

investor D invested $500,000. If the net profit for the first year was $1,000,000, investor A receives $150,000 more than if the profits were divided in proportion to how much they invested.

If the profits were divided according to investment percentage he would have gotten 200,000 / (200,000 +500,000 + 800,000+500,000) x $1m = $100,000.

However if profits are shared equally he receives $1m / 4 investors = $250,000.

Therefore $250,000 - $100,000 = $150,000

4 0
2 years ago
American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); National Bank quotes a bid rate
Vinvika [58]

Answer:

c. buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate.

Explanation:

  • Locational arbitrage is a strategy in which one seeks profits from the difference in exchange rates for the same currency at different banks.
  • In our case for locational arbitrage one will have to buy Indian rupee from National bank at the ask rate and then sell them to American bank at the bid rate to make profit.
3 0
2 years ago
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon
pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.

4 0
2 years ago
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