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2 years ago

Use the information below to answer questions 4-7. Drake Company's income statement for the most recent year appears below:

Business

1 answer:

Colt1911 [192]2 years ago

6 0

Answer:

(A) $731,250

Explanation:

The formula to compute the break-even point in sales dollars is shown below:

= (Fixed expenses or Fixed cost) ÷ (Contribution ratio)

where,

Contribution ratio = Contribution margin ÷ sales

= $208,000 ÷ $650,000

= 0.32 or 32%

And, the fixed expense is $234,000

Now put the values to the above formula

So, the value would equal to

= $234,000 ÷ 32%

= $731,250

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A firm has 1,000 shareholders. Both you and Ms. Hostile are among them. Ms. Hostile owns 150 shares and is trying to fire the ma

Andrej [43]

Answer:

$28.24

Explanation:

Total value of the firm's equity = 1000 shares * $30

Total value of the firm's equity = $30,000

Amount paid to Ms. Hostile = 150 shares*($30+$10)

Amount paid to Ms. Hostile = 150 shares * $40

Amount paid to Ms. Hostile = $6,000

Value of equity after paying = Total value of the firm's equity - Amount paid to Ms. Hostile

Value of equity after paying = $30,000 - $6,000

Value of equity after paying = $24,000

No. of shares remaining = 1,000 shares - 150 shares

No. of shares remaining = 850 shares

Value of each share = Value of equity after paying/No. of shares remaining

Value of each share = $24,000 / 850 shares

Value of each share = $28.23529

Value of each share = $28.24

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2 years ago

Ibrahim’s company is in the process of developing what he feels is a complex and risky project. Ibrahim has decided to use a dev

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Answer:

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2 years ago

You have a neighbor, Mr. Peterson, who comes to you for advice. He owns a fish and chips restaurant, "The Codfather, LLC" which

Vladimir [108]

The first advice I would give Mr. Peterson would be to formalize the transfer. So the first step in this situation would be to contact a good lawyer to see if the transfer of business to your child would be authorized. This is because the transfer of LLCs has rules that may differ from one location to another.

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Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,902.14. The bond has a coupon rate of 6.48 percent and m

Virty [35]

Answer:

yield to maturity = 7.06%

Explanation:

yield to maturity (YTM) is calculated using the following formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

FV = $2,000
PV = $1,902.14
C = $2,000 x 6.48% x 1/2 = $64.80
n = 12 x 2 = 24

YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually

Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.

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2 years ago

Jitensha Bike Parts was called to testify before the U.S. Congress. The CEO of Jitensha defended the company against an accusati

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Answer:

the company includes at least 10% of overhead costs and an 8% profit margin in all the sales.

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Dumping occurs when companies export their products at a lower price than domestic sales price. American laws prohibit dumping and require foreign firms to include 10% overhead costs + an 8% profit margin in the prices of the goods they export to the US.

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2 years ago