Answer:
Activity Rates
Consultation $150
Drawings $58
Modeling $0.7
supervision $190
Billings $1037.5
Collections $1642.5
Total overhead allocated: $ 126,826
Explanation:
First, we divide the cost of each activity over the base total to get the rate.
Now we apply this rate against the job activity measurement:
Answer:
$22.2222, $9.5238, respectively
Explanation:
The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:
The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:
The book value per share and earnings per share are $22.2222, $9.5238, respectively
Answer:
a) 4.800 units: Operational loss area (L)
12,000: Break even point (BEP)
$1,500,000: BEP
20,000 units: Operational profit area (P). Also, the maximum amount of units.
$2,500,000: Operational profit area (P). Also, the maximum amount of sales.
b) BEP: 12,000 units or $1,500,000 in sales.
Explanation:
The graph is divided in two sections:
1 - The operational loss area (L)
2 - The operational profit area (P)
The interface between both regions is the breakeven point.
a) 4.800 units: Operational loss area (L)
12,000: Break even point (BEP)
$1,500,000: BEP
20,000 units: Operational profit area (P). Also, the maximum amount of units.
$2,500,000: Operational profit area (P). Also, the maximum amount of sales.
b) The breakeven point is where sales equal total cost (or the level at which profits are zero). This breakeven point (BEP) is at 12,000 units:
This corresponds to $1,500,000 in sales.
