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Lerok [7]
2 years ago
8

Angler Manufacturing makes fishing poles and sells them for $30 each. The firm’s variable costs are $12 per unit, and its total

fixed costs are $54,000. This year, Angler anticipates its fixed costs will increase by 20%. What is the firm’s break-even point in units assuming the increase in fixed costs and that all other factors remain constant
Business
1 answer:
Zigmanuir [339]2 years ago
4 0

Answer:

3,600 units

Explanation:

Given:

Selling price per unit = $30

Variable cost per unit = $12

Contribution per unit = Selling price - variable cost

                                 = 30 - 12

                                 = $18 per unit

Fixed cost = $54,000

Increase in fixed cost this year = 54,000 × 1.2 = $64,800

Break even point in units = Fixed cost / contribution margin

Since only fixed cost increase and selling price and variable cost remain same, contribution margin will be $18 per unit

Break even point in units = 64,800 / 18

                                           = 3,600 units

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Swinnerton Clothing Company's balance sheet showed total current assets of $2,250, all of which were required in operations. Its
nevsk [136]

Answer: $1,530

Explanation:

It's net working capital that was financed by investors include the following figures,

Total current Assets.

Accounts Payables and Accrued wages need to be deducted because they came about as a result of operations and are neither of debt or equity financing so are considered free.

So, in calculating we have,

= 2,250 - 575 - 145

= $1,530

Swinnerton Clothing Company's net operating working capital that was financed by investors is $1,530

6 0
2 years ago
Read 2 more answers
Explain the five steps of the theory of constraints (TOC) process. To what processes might the company in the case study apply T
irga5000 [103]

Explanation:

The theory of constraints (TOC) is a theory whose objective is to identify the most limiting constraint related to a systemic organizational process, that is, to identify the bottleneck that prevents an organization from carrying out its activities effectively and consequently achieving its objectives.

The steps are:

1- Identify: The first step is to identify the most limiting current constraint in the organization.

2- Exploit: In the exploit stage, it means making improvements with the resources available in the identified constraint.

3- Subordinate: In this stage, the review of other organizational activities that may interfere with the identified constraint is carried out, to identify whether there is how to make improvements in the subordinate activities that can guarantee the reduction of the constraint.

4- Elevate: In this stage, actions are implemented to eliminate the constraint if it has not yet been eliminated.

5- Repeat: In the last step, each step of the cycle is monitored so that there is continuous improvement in the elimination of the current constraint or a new constraint, so that the processes are constantly optimized.

TOC is effective in companies that use systemic production processes, as in a manufacture for example, whose stages of the production process are subordinate and one interferes in the quality of the other, which can interfere in the process as a whole.

The theory of constraint offers the continuous improvement of all processes and the elimination of current restrictions and the better identification of possible new restrictions, as well as the best use of organizational resources, which generates for the company greater profitability, less waste and less time delivery, improving the entire organizational process.

6 0
2 years ago
Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
Elza [17]

The answer is marginal revenue (MR) curve above $22.

Explanation:

Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.

Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.

Economic profit = account profit = Opportunity profit

Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.

3 0
2 years ago
Tyler company has been approached by a new customer with an offer to purchase 6,000 units of its product kr200 at a price of $11
Lilit [14]
So tyler company gets new customer which purchase 20% of the production whcih company sales during business year with th 40% discount.
8 0
2 years ago
Colgate reported Diluted EPS of $2.38 in accordance with GAAP. How much higher would EPS be if Colgate ignored the impact of res
Fantom [35]

Answer:

EPS will be higher than $2.38

Explanation:

The earnings per share are the income that is accessible to the company's shareholders after all the costs and taxes are deducted. Restructuring costs are one-time costs that are recorded in the income statement as other operating expenses.

The presence of restructuring and other one-time costs in the Revenue Statement leads to lower pre-tax earnings and cause decrease in net profit. When these expenses are excluded, the Earning would increase, resulting in the company's EPS.

4 0
2 years ago
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