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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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Explanation:

Given

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dividend to grow at constant rate of 6%

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                        = 3 x (1+6%) / 12-6 = 3 x 1.06 /6% =3.18/0.06=  $53

Therefore  value of stock for the requitred return of 12 % ,=  $53

6 0
2 years ago
Jack and diane each buy pizza and paperback novels. pizza costs $3 per slice, and paperback novels cost $5 each. jack has a budg
gregori [183]

The correct answer is Jack.

The total cost of 5 slices of pizza and 3 paperback novels is calculated by this formula:

(5 x $3) + (3 x $5)=

$15 + $15 = $30

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7 0
2 years ago
When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products wit
GarryVolchara [31]

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4 0
2 years ago
How can inequality or discrimination hurt an economy's ability to maximize its human capital?
inessss [21]
Well, if people are discriminated against and feel they are not equal to some other classes in their own society, they obviously will not be happy which will have an impact on their jobs and careers. If they are not happy, they will not give their full potential at their jobs, which will ultimately lead to less and less income for the company.
That's what I think, at least. :)
3 0
1 year ago
Read 2 more answers
The following information is taken from the income statement of Olympic, Inc.: Depreciation Expense $ 90,000 Amortization Expens
Lina20 [59]

Answer:

The correct option is D,$402,000.

Explanation:

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less gain on sale of building($27000)

Cash flow from operations  $402,000

The cash flow from operating activities as adjusted is $402,000.

6 0
1 year ago
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