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Ivan
2 years ago
6

The Motor Works is considering an expansion project with estimated fixed costs of $87,000, depreciation of $22,900, variable cos

ts per unit of $22.37, and an estimated sales price of $28.50 per unit. How many units must the firm sell to breakeven on a cash basis?
Business
1 answer:
Zielflug [23.3K]2 years ago
6 0

Answer:

Break Even in Units 142,193

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

28.5 - 22.37 = 6.13

This is the margin per unit to afford the fixed cost and generate a profit

Monetary Fixed cost:

87,000

Depreciation is a non-monetary concept, we are asked for a cash basis so we don't include it.

I'm assuming the 87,000 fixed cost do not include the depreciation so it will be ignored.

If the fixed cost include the depreciation then we should subtract depreciation and calculate with the answer.

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

87,000/6.13 = 142,192.50 = 142,193

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Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is i
noname [10]

Answer:

c.) 82,000

Explanation:

We know that,

The ending work in progress units = Beginning work in process inventory + Units started in production - Units completed and transferred

7,000 dolls =  4,000 dolls + Units started in production -  79,000 dolls

7,000 dolls = -75,000 dolls + Units started in production

So, Units started in production = 75,000 dolls + 7,000 dolls

                                                    = 82,000

5 0
2 years ago
Twist Corp. has a current accounts receivable balance of $457,615. Credit sales for the year just ended were $2,940,600.a. What
Alexus [3.1K]

Answer and Explanation:

The computations are as follows

a.  For company receivable turnover

As we know it is

= Credit Sales ÷ current account receivable balance

= $2,940,600 ÷ $457,615

= 6.43 times

b.

Now

company's days' sales in receivables is

= 365 ÷ Receivables turnover ratio

= 365  ÷ 6.43

= 56.77 days  

c.  Therefore the average collection period is the same as days sales in receivable i.e 56.77 days

4 0
2 years ago
Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the begin
Katena32 [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Total Estimated total machine-hours (MHs) 10,000

Estimated total fixed manufacturing overhead cost= $45,800

Total Estimated variable manufacturing overhead cost- per MH= $1.90 +  $2.10= $4

To calculate the estimated manufacturing overhead rate we need to use the following formula:

<u>Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base</u>

<u>Estimated  FIXED manufacturing overhead rate=</u> (45,800/10,000)= $4.58

7 0
2 years ago
Generating ideas often includes brainstorming or brainwriting. These techniques can be an effective way to produce the best idea
Lady bird [3.3K]

Answer:

1- a. Use flip-charts and classify ideas.

2) a. Crowd-storming.

Explanation:

1- To improve the group's brainstorm, Jeanne should use flipcharts and classify ideas.

Flipcharts is a whiteboard used as a visual resource, which allows the best visualization of graphics, new ideas, etc., in a dynamic and summarized way, since this visual resource attracts attention, records and helps in the fixing of content and central ideals.

2- The situation represents crowdstorming, which is a marketing strategy used when an organization wants to improve the services and products offered through interaction with groups of employees who can even be consumers, as in the case above.

This strategy helps in better brand positioning, by receiving direct feedbacks from the potential public, which helps in better meeting their wants and needs.

6 0
2 years ago
29. Maxwell is trying to decide whether to accept a salary of $60,000 or a salary of $25,000 plus a bonus of 20% of net income a
Akimi4 [234]

Answer:

Maxwell world consider choice equal to $310000

Explanation:

given data

accept a salary = $60,000

salary = $25,000

bonus = 20% of net income

to find out

amount of income would be necessary so that Maxwell would consider

solution

we get here income by bonus that is express as

bonus = 2 ( income - bonus - salary )   ..............1

3500 = 2 ( income - ( 0.2 × 35000 ) - ( 0.2 × (75000 + 35000) )

solve it we get

income = $310000

so Maxwell world consider choice equal to $310000

3 0
2 years ago
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