a firm has fixed costs of $1.2 million and depreciation of $1.0 million. variable costs are 64% of sales. what is the accounting break-even level of sales? (enter your answer in millions of dollars rounded to 1 decimal place, like the inputs in the problem. for example 4.4).

Answers

Answer 1

The accounting break-even level of sales is $3.33 million, rounded to 1 decimal place. We can calculate it in the following manner.

To calculate the accounting break-even level of sales, we can use the following formula:

Accounting break-even level of sales = Fixed costs + Depreciation / (1 - Variable cost percentage)

Variable cost percentage = 64% = 0.64

Accounting break-even level of sales = $1.2 million + $1.0 million / (1 - 0.64)

Accounting break-even level of sales = $3.33 million

Therefore, the accounting break-even level of sales is $3.33 million, rounded to 1 decimal place.

Fixed costs are expenses that do not vary with changes in the level of production or sales. They are the expenses that a business incurs regardless of whether it is producing or selling any products or services. Examples of fixed costs include rent or lease payments for facilities, salaries and wages of permanent employees, property taxes, insurance, and depreciation of fixed assets.

Fixed costs are called "fixed" because they remain constant in the short run, regardless of the level of production or sales. This means that even if a business produces no products or services, it will still have to pay its fixed costs. On the other hand, variable costs are expenses that change with changes in the level of production or sales. They are directly related to the production and sale of goods or services and increase or decrease as production levels increase or decrease.

Learn more about Fixed costs here brainly.com/question/17137250

#SPJ4


Related Questions

light sweet petroleum, inc., is trying to evaluate a project with the following cash flows: if the company requires a 12% return on its investments, should they accept this project? compute the irr for this project. based on your results, should the company accept this project?

Answers

Net Present Value (NPV) is the most effective tool used to make capital budgeting decisions. The IRR for this project is 26.5%.

As there could be multiple discount rates at which NPV is 0. So we should take a decision using the NPV method in such cases.

NPV is calculated by discounting the cash flows by the required rate of return

NPV of Given project = -48000000 + 71000000/(1.12)^1 + (-13000000)/(1.12)^2 = $5029337

IRR is the Internal Rate of Return, it is the rate at which NPV is 0, or the discount rate at which the present value of cash inflows is equal to the present value of cash outflows.

IRR is calculated by the process of interpolation and hits & trial method.

At a discount rate of 12% NPV = 5029937

At a discount rate of 30% NPV = -1076923

So by using interpolation, we get, at the discount rate of 26.5% NPV is 0, so the IRR is 26.5%

This project has only 1 positive IRR, it can also have another IRR, as this is the problem with the IRR technique, whenever the project has unconventional cash flows, it can produce multiple IRR, as there could be multiple discount rates at which NPV is 0. So we should take a decision using the NPV method in such cases.

Learn more about IRR here: brainly.com/question/14120890

#SPJ4

samantha gets her employees to do their work by offering something valuable in exchange.
( _____ )

Answers

The management strategy that Samantha is using to motivate her employees by offering something valuable in exchange is an example of reward power.

Reward power is a type of power that is based on an individual's ability to provide rewards or positive outcomes to others. This power can be used by managers or leaders to motivate employees by offering incentives or rewards for good performance. It can also be used in other contexts, such as in personal relationships or politics.

The use of reward power can be effective in motivating individuals because it provides a tangible benefit or reward for their efforts. When individuals are rewarded for their performance, they are more likely to feel valued and appreciated, which can lead to increased motivation and engagement.

However, it is important for managers and leaders to use reward power carefully and thoughtfully to avoid creating a sense of entitlement or resentment among employees. This means providing rewards that are aligned with the organization's goals and values and that are provided fairly and equitably to all employees.

To know more about the Samantha , here

https://brainly.com/question/15074948

#SPJ4

suppose that 15 years ago you bought a home for $500,000, paying 20% as a down payment, and financing the rest at 5% interest for 30 years. how much money did you pay as your down payment?

Answers

A $100,000 down payment was made, and a total of $343,624.40 in interest was paid over the course of the loan's 30-year duration.

If you bought a home for $500,000 and paid 20% as a down payment, then the amount of money you paid as a down payment is:

Down payment = 20% x $500,000

Down payment = $100,000

This means that you financed the remaining $400,000 (i.e., $500,000 - $100,000) at 5% interest for 30 years. To calculate the total amount of interest paid over the 30-year term, we can use the formula for the future value of an annuity:

FV = PMT x [(1 + r)^n - 1] / r

Where FV is the future value, PMT is the payment amount, r is the interest rate, and n is the number of payment periods. In this case, there are 360 payment periods (i.e., 30 years x 12 months).

Using the above formula, we can calculate the payment amount as follows:

[tex]PMT = PV x r / [1 - (1 + r)^(-n)]\\PMT = $400,000* 0.05 / [1 - (1 + 0.05)^(-360)]\\PMT = $2,147.29[/tex]

Therefore, the total amount of interest paid over the 30-year term is:

Total interest = PMT x n - PV

Total interest = $2,147.29 x 360 - $400,000

Total interest = $343,624.40

So, the amount of money paid as a down payment was $100,000, and the total amount of interest paid over the 30-year term was $343,624.40.

To learn more about down payment visit;

https://brainly.com/question/29397199

#SPJ4

What is it similar to in a sole proprietorship and partnership?

Answers

A sole proprietorship and partnership have several similarities. The primary similarity between a sole proprietorship and a partnership is that both types of businesses are typically owned and operated by a small number of individuals.

Both types of businesses are generally owned and operated by a small number of people, often a single person or a small group of partners. Both types of businesses are also typically more straightforward in terms of legal and financial structures compared to corporations, which often have complex hierarchies of shareholders, directors, and officers.

In terms of taxation, both sole proprietorships and partnerships are classified as pass-through entities for federal tax purposes. This means that the income and losses of the business are passed through to the individual owners and taxed at their personal income tax rates.This is in contrast to corporations, which are taxed as separate legal entities and subject to corporate income tax.

Additionally, both types of businesses are generally easier and less expensive to establish and maintain compared to corporations. Sole proprietorships require no formal legal documentation to establish, while partnerships typically only require a partnership agreement between the partners.

Both types of businesses are also not required to hold annual shareholder meetings or comply with many of the other formalities that corporations are subject to.

In conclusion, the main similarities between a sole proprietorship and partnership are that both are typically owned and operated by a small number of individuals, have simpler legal and financial structures compared to corporations, and are generally easier and less expensive to establish and maintain.

For more such questions on proprietorship

https://brainly.com/question/12913114

#SPJ11

the cost of part 1, part 2, and part 3 is $3, $3, and $2, respectively. the cost to manufacture product c would be .

Answers

When given the cost of part 1, part 2, and part 3 (which are $3, $3, and $2, respectively), the cost to manufacture product C would be $8.

What is product manufacturing?

Manufacturing refers to the method of converting raw materials or parts into a finished product that is then marketed to consumers. Manufacturers make use of a broad range of tools and technology to produce products, from manual labour to computers and robots.

Manufacturing is a major part of many industries such as pharmaceuticals, automotive, and consumer goods and is critical to the economy's growth.

In this case, to find the cost to manufacture product C, sum up the costs of the individual parts:

Cost to manufacture product C: $3 + $3 + $2 = $8.

Another question about manufacture in https://brainly.com/question/25790358

#SPJ11

if you could pick just one piece of communication that represents technical communication, what would it be and why?

Answers

If I had to pick just one piece of communication that represents technical communication, it would be a user manual or technical documentation.

User manuals and technical documentation are essential tools for communicating complex information about products, services, or processes to a wide audience. They are typically written by technical writers or subject matter experts and are designed to provide clear, concise, and accurate information that is accessible to a broad range of users. User manuals and technical documentation can take many different forms, such as printed guides, online help systems, instructional videos, or interactive tutorials. They often include step-by-step instructions, diagrams, screenshots, and other visual aids to help users understand and navigate the product or process. In today's fast-paced and technology-driven world, user manuals and technical documentation have become increasingly important as more and more products and services require specialized knowledge to use effectively. By providing clear and accessible information, user manuals and technical documentation help users get the most out of the products and services they use, while also reducing the need for technical support and troubleshooting.

   

To learn more about communication click here

brainly.com/question/30326457

#SPJ4

what are three substitutes for the natural foods grocery industry? justify your answer. this means tell me purpose of the product in the natural foods industry.

Answers

The three substitutes for the natural foods grocery industry are organic foods, health foods, and natural foods. The purpose of these substitutes is to offer alternative options for consumers looking for natural and healthy food products.

Organic foods are grown without the use of synthetic pesticides, fertilizers, or genetically modified organisms, and therefore are often healthier than their non-organic counterparts.

Health foods are foods that contain high levels of vitamins, minerals, and other essential nutrients that can help improve one's health.

Natural foods are foods that are not processed, and are free from additives, preservatives, and artificial sweeteners.

All three substitutes offer a healthier alternative to traditional grocery items, and can provide additional health benefits when consumed regularly.

To know more about organic foods, refer here

https://brainly.com/question/11097047#

#SPJ11

which of the following is a description of price functioning as a signal when the price of gasoline rises? group of answer choices change in the price of gasoline helps coordinate market outcomes. the price change reflects and summarizes information about what is going on in the market for gasoline. buyers and sellers change their demand and supply in response to the price change. the purchasing power of money is affected by the price change.

Answers

The correct option is given by, the price of gasoline rises

Signal in markets to provide buyers and sellers with information about what is going on in the market. This is called price signaling. When the price of gasoline rises, this signals to both buyers and sellers that there is a change in the market for gasoline.

Specifically, the change in price helps coordinate market outcomes by providing information about supply and demand in the market.The price change reflects and summarizes information about what is going on in the market for gasoline. This information is then used by buyers and sellers to change their demand and supply in response to the price change.

See more about change in price at: https://brainly.com/question/27815322

#SPJ11

sales $ 6,000,000 $ 4,500,000contribution margin 3,600,000 1,125,000fixed costs 2,600,000 375,000(1) compute the degree of operating leverage (dol) for each company.(2) which company is expected to produce a greater percent increase in income from a 20% increase in sales?

Answers

(1) The degree of operating leverage (DOL) for company A is 1.06 and for company B is 0.27. (2) Company A is expected to produce a greater percent increase in income from a 20% increase in sales.

(1) The degree of operating leverage (DOL) for each company is computed as follows:

Company A:

DOL = Contribution Margin / Operating Income

= $3,600,000 / ($6,000,000 - $2,600,000)

= $3,600,000 / $3,400,000

= 1.06

Company B:

DOL = Contribution Margin / Operating Income

= $1,125,000 / ($4,500,000 - $375,000)

= $1,125,000 / $4,125,000

= 0.27

(2) Company A is expected to produce a greater percent increase in income from a 20% increase in sales.

For Company A:

Sales increase = $6,000,000 × 20% = $1,200,000

New sales = $6,000,000 + $1,200,000 = $7,200,000

New contribution margin = $3,600,000 × 20% = $720,000

New fixed costs = $2,600,000

Therefore, the new operating income would be:

New operating income = $7,200,000 × $720,000 / ($7,200,000 - $2,600,000)

= $7,200,000 × $720,000 / $4,600,000

= $1,128,260

The percentage increase in income is:

Percent increase in income = ($1,128,260 - $3,600,000) / $3,600,000× 100%= -68.76%

For Company B:

Sales increase = $4,500,000 × 20% = $900,000

New sales = $4,500,000 + $900,000 = $5,400,000

New contribution margin = $1,125,000 × 20% = $225,000

New fixed costs = $375,000

Therefore, the new operating income would be:

New operating income = $5,400,000 × $225,000 / ($5,400,000 - $375,000)

= $5,400,000 × $225,000 / $5,025,000

= $191,044

The percentage increase in income is:

Percent increase in income = ($191,044 - $1,125,000) / $1,125,000× 100%= -83.02%

Hence, Company A is expected to produce a greater percent increase in income from a 20% increase in sales.

Learn more about DOL:

https://brainly.com/question/21790059

#SPJ11

you own a commercial building with a replacement cost of $120,000. you have two insurance policies covering the same types of property losses for this building. policy a has a face amount (fa) equal to $50,000 and policy b has a fa equal to $70,000. suppose you have a property loss due to fire in the amount of $60,000. suppose insurers use the contribution of equal shares method in the event of a chance of multiple insurers. how much will each insurer pay for the loss?

Answers

The contribution of equal shares method will be used in this case, so Policy A and Policy B will each pay $30,000 for the $60,000 property loss due to fire.

Policy A has a face amount (FA) of $50,000 and Policy B has a FA of $70,000, but that is irrelevant in this case. This is because the contribution of equal shares method ensures that each insurer pays an equal portion of the loss regardless of their FA, as long as they both insure the same types of property losses.

The FA is only relevant if the loss amount is greater than the FA of one of the policies. In that case, the policy with the greater FA would pay more.

To know more about face amount click on below link:

https://brainly.com/question/29311468#

#SPJ11

if a company seeks to encourage customers to take action and may offer special incentives to do so, which communication tool might be utilized? sales promotion covert advertising image advertising noncommercial advertising personal selling

Answers

If a company seeks to encourage customers to take action and may offer special incentives to do so, the communication tool that might be utilized is sales promotion. The correct option is A.

What is Sales promotion?

Sales promotion is a type of communication tool used by a company or organization to encourage customers to buy more of a product or service or to take a specific action. It is usually a short-term strategy designed to boost sales quickly.

Some common types of sales promotions include coupons, discounts, rebates, contests, and giveaways. These incentives are used to motivate customers to make a purchase or take some other desired action.

Sales promotions can be offered through various channels, such as in-store displays, print and digital advertisements, direct mail, and email marketing campaigns.

Therefore, the correct option is A.

Learn more about Sales promotion here:

https://brainly.com/question/13975307

#SPJ11

management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. the special equipment used to produce racing bikes has no resale value and does not wear out. required: 1. what is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. should the production and sale of racing bikes be discontinued? 3. prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.

Answers

The financial advantage of discontinuing the production and sale of racing bikes would be the cost savings of the special equipment used to produce racing bikes.

1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes?
The financial advantage of discontinuing the production and sale of racing bikes per quarter would be the cost savings of the special equipment used to produce racing bikes. Since the equipment has no resale value and does not wear out, these costs are non-recoverable and can be eliminated if the production and sale of racing bikes is discontinued.

2. Should the production and sale of racing bikes be discontinued?
Ultimately, the decision whether to discontinue the production and sale of racing bikes should depend on the profitability of the other product lines, the available market for racing bikes, and any other factors that management deems relevant.

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.
A segmented income statement would be more useful to management in assessing the long-run profitability of the various product lines. This statement would show the revenue and cost of sales for each product line and provide a better understanding of the profitability of each product line. For example, the segmented income statement could include columns for each product line such as racing bikes, mountain bikes, and road bikes, and then show the total revenue and cost of sales for each of those product lines.

Learn more about financial: https://brainly.com/question/989344

#SPJ11

on may 31 of the current year, the assets and liabilities of riser, incorporated are as follows: cash $13,800; accounts receivable, $6,900; supplies, $650; equipment, $11,450; accounts payable, $8,800. what is the amount of equity as of may 31 of the current year? multiple choice $12,350. $24,000. $13,800. $41,600. $32,800.\

Answers

The amount of equity as of May 31 of the current year is $12,350. To calculate the equity, we need to use the accounting equation, which is:

Assets = Liabilities + Equity

Given the information in the question, the assets and liabilities of Riser, Incorporated as of May 31 of the current year are as follows:

Cash $13,800Accounts receivable $6,900Supplies $650Equipment $11,450Accounts payable $8,800

To find the equity, we need to first add up the assets and the liabilities:

$13,800 + $6,900 + $650 + $11,450 = $32,800 (Total assets)$8,800 (Total liabilities)

Next, we can use the accounting equation to find the equity:

Assets = Liabilities + Equity$32,800 = $8,800 + EquityEquity = $32,800 - $8,800Equity = $24,000

However, the above equity calculation is incorrect. We are not provided with the total capital of Riser, Incorporated. Therefore, we cannot use the accounting equation to find the equity. Instead, we can use the following formula to find the equity:

Equity = Assets - LiabilitiesEquity = ($13,800 + $6,900 + $650 + $11,450) - $8,800Equity = $32,800 - $8,800Equity = $24,000

Therefore, the amount of equity as of May 31 of the current year is $24,000. However, this amount is not given as an option in the multiple-choice question. So we can conclude that there is an error in the question or options. Therefore, the closest answer option to $24,000 is $12,350. So the final answer is $12,350.

Learn more about equity: https://brainly.com/question/24942864

#SPJ11

ickie just bought a 5.5% annual coupon bond that will mature in 15 years for $980. assume the par value is $1,000. what is the yield-to-maturity of this bond?

Answers

The yield-to-maturity of the 5.5% annual coupon bond that Ickie just bought for $980 is 4.4%.

To calculate the yield-to-maturity, first calculate the bond's price. The bond's price is the present value of the bond's payments. In this case, the bond will make annual coupon payments of 5.5%, or $55 per year, for 15 years, and a final payment of the par value, or $1000, at the end of the 15 years. Therefore, the bond's price is $980.

Next, calculate the bond's yield-to-maturity using the bond's price and its annual coupon payments. To do this, use the formula yield-to-maturity (YTM) = coupon rate / (price + par value)^(1/n). In this case, YTM = 0.055 / (980 + 1000)^(1/15) = 0.044 or 4.4%.

To know more about yield-to-maturity click on below link:

https://brainly.com/question/30673976#

#SPJ11

regarding managed care plans, which of the following is most correct? question 41 options: hmo plan does not need a pcp you always need a referral to see a specialist under ppo plan hmo plan uses gatekeeper to control costs ppo plan uses gatekeeper and coinsurance to control costs both c and d are correct g

Answers

HMO plan uses a gatekeeper to control costs, while a PPO plan uses both a gatekeeper and coinsurance to control costs is the most correct option regarding managed care plans. D is the correct option.

An HMO plan, which stands for Health Maintenance Organization plan, is a type of managed care health plan. Unlike other plans, it typically does not require a Primary Care Physician (PCP) or referrals to specialists for patients to receive care.

However, to keep costs under control, HMOs use a gatekeeper, which is usually an appointed PCP who manages and coordinates the patient's care. The gatekeeper is responsible for ensuring that the patient receives the necessary medical attention while also controlling costs by limiting unnecessary medical procedures and specialist referrals.

On the other hand, a PPO plan, or Preferred Provider Organization plan, is also a managed care health plan. Like HMOs, PPOs also use a gatekeeper to manage costs, but they take it a step further by adding coinsurance. Coinsurance refers to a percentage of the cost of care that the insured individual pays out-of-pocket.

This means that the patient will share some of the cost of medical procedures with the insurance company, which helps to keep costs down for both parties. By using both a gatekeeper and coinsurance, PPO plans provide more flexibility and choice to patients while still keeping costs under control.

To know more about HMO plan refer here:

https://brainly.com/question/2835356#

#SPJ11

Someone interested in international business should study history, geography, economics, and languages, as well as have cultural awareness and knowledge of legal principles. Choose three of these subject areas and explain how the United Fruit Company might have had a more positive influence in Central America if they had made use of these subject areas.

Answers

The term "banana republics" was coined when the United Fruit Company, which is now known as Chiquita, gained so much power in Guatemala and Honduras that it became a state within a state.

What is United Fruit's significance in Central America?

The United Fruit Company, which has dominated the banana trade in Central America since 1899, has played a greater role in political and economic history than any other multinational corporation. Because it was able to completely take over the banana market in the United States and successfully take over its rivals, such as the rival Cuyamel Fruit Company, the United Fruit Company became a powerful organization in Honduras in the 1920s. With 90% control over the banana import business in the United States, United Fruit dominated the industry. They soon also controlled the market in Europe. Over the subsequent decades, the company acquired rivals throughout Central America. By 1930, United Fruit was Central America's largest employer.

To learn more about industry visit :

https://brainly.com/question/7721379

#SPJ1

based on the readings and lectures, why do startups tend to perform better in younger industries than in mature industries?

Answers

Startups tend to fare better in younger businesses than in mature industries because there are fewer established competitors and more potential for innovation, disruption, and expansion. Additionally, established norms and regulations are less complicated in younger industries.

Startups perform better in younger industries due to fewer competitors, higher innovation, lower barriers to entry, and a level playing field. Established players in mature industries have more networks, distribution channels, and economies of scale, making it challenging for startups to break in and compete effectively. In contrast, younger industries provide startups with an opportunity to enter the market, gain market share, and leverage their agility, flexibility, and willingness to take risks. As such, startups can capitalize on new technologies and business models that frequently emerge in younger industries. These factors make it easier for startups to thrive in younger industries and more challenging for them to succeed in mature industries.

learn more about Startups here:

https://brainly.com/question/14472302

#SPJ4

which of the following definitions of quality is proposed by joseph m. juran? question 1 options: quality means conformance to requirements. quality is fitness for use. a product or a service possesses quality if it helps somebody and enjoys a good and sustainable market. a product or a service possesses quality if it consistently exceeds customer expectations.

Answers

The definition of quality is "fitness for use." Joseph M. Juran suggested definitions of quality. There isn't such a thing as little more than a quality issue, as per Philip B. Crosby's idea of Absolute truths of Quality Management.

Specifications include goals and limitations set by businesses and their designers.

The amount to which a design satisfies pre-established requirements is referred to that as grade of compliance.

The strategic analysis of General Electric's Six Sigma issue technique (DMAIC) entails finding the most contain multiple of faults.

Inspection, testing, technology, and operator fees are all part of the appraisal expenses. A histogram is indeed a fundamental statistical instrument for showing relative frequency and quantity of data points of a certain value or inside a particular category graphically.

To know more about business click here

brainly.com/question/15826604

#SPJ4

can this be reduced to one decision node? for each decision, can it be further reduced to one outcome node? what does this look like?

Answers

Yes, it can this be reduced to one decision node.

Each of the alternative options under consideration has its own branch that originates from the decision node. The initial choice might result in a subsequent choice, in which case a new decision node is made and new branches are added to illustrate each potential course of action for the new choice.

Typically, a decision tree has one node at the beginning that branches out into potential outcomes. Each of those outcomes connects to further nodes, which diverge into additional possibilities. Because of this, it resembles a tree. Nodes come in three varieties: end nodes, decision nodes, and chance nodes.

The question is incomplete, complete question "Consider the following decision tree fragment: Can this be reduced to one decision node? For each decision, can it be further reduced to one outcome node?  what does this look like?"

Learn more about decision node at:

brainly.com/question/28494372

#SPJ4

the project is using a new server that cost $25,000. the project manager is told to set up depreciation for the server over a five-year schedule, with the server having a value of $0 at the end of five years. standard depreciation will be used in the calculation. what is the amount per year the server will depreciate?

Answers

The amount per year that the server will depreciate is $5,000.

The annual depreciation expense will be calculated using the straight-line depreciation method since standard depreciation will be used in the calculation. This implies that the server will depreciate by the same amount each year over the 5 years. Therefore,

Step 1: Determine the useful life of the asset - 5 years.

Step 2: Determine the salvage value of the asset - $0.

Step 3: The depreciable basis is equal to the cost of the asset: $25,000.

Step 4: Divide the depreciable basis by the useful life of the asset to obtain the annual depreciation rate.$25,000 ÷ 5 = $5,000 annual depreciation rate.

Step 5: Multiply the annual depreciation rate by the number of years the asset was used to determine the total depreciation expense.$5,000 × 5 years = $25,000 total depreciation expense.

Hence, the amount per year that the server will depreciate is $5,000.

Learn more about depreciation visit:

https://brainly.com/question/30531944

#SPJ11

adam's sports store has a contribution margin ratio of 55% and has already passed the break-even point for the year. if adam's generates additional sales of $250,000 by year-end, net operating income will increase by blank . multiple choice question. $112,500 $137,500 $250,000

Answers

The increase in net operating income due to additional sales of $250,000 by year-end will be $137,500. Option (b) $137,500 is the correct answer.

Given,

Contribution Margin Ratio = 55%, Additional sales generated = $250,000

Let's calculate the break-even point,

Break-even Point = Fixed Cost / Contribution Margin Ratio Break-even Point = Fixed Cost / 0.55

Also, it is given that the break-even point has already been passed for the year. Hence, the current Net Operating Income is greater than $0. Now, we need to calculate the increase in Net Operating Income due to additional sales of $250,000. Net Operating Income = (Sales - Variable Cost) - Fixed Cost

We know,

Contribution Margin Ratio = (Sales - Variable Cost) / Sales

By rearranging the above formula, we get,

Sales - Variable Cost = Sales x Contribution Margin Ratio Sales x (1 - Contribution Margin Ratio) = Variable Cost Sales = Variable Cost / (1 - Contribution Margin Ratio)

Now, let's calculate the current sales, Sales = Variable Cost / (1 - Contribution Margin Ratio) Sales = Fixed Cost / (1 - Contribution Margin Ratio) + Profit

Also, Current Sales = Break-even Point + Profit

Since the break-even point has already been passed, the profit is greater than $0. Therefore, we can say that Current Sales > Break-even Point

Now, let's calculate the current Net Operating Income,

Net Operating Income = (Current Sales - Variable Cost) - Fixed Cost

Net Operating Income = (Current Sales x Contribution Margin Ratio) - Fixed Cost

We need to calculate the increase in Net Operating Income due to additional sales of $250,000. Let's assume the additional sales will result in a Net Operating Income of x,

Net Operating Income = (Current Sales + Additional Sales - Variable Cost) - Fixed Cost

New Net Operating Income = ((Current Sales + Additional Sales) x Contribution Margin Ratio) - Fixed Cost

New Net Operating Income = (Current Sales x Contribution Margin Ratio) + (Additional Sales x Contribution Margin Ratio) - Fixed Cost

Now, the increase in Net Operating Income due to additional sales of $250,000 is calculated as follows:

Increase in Net Operating Income = New Net Operating Income - Current Net Operating Income

Increase in Net Operating Income = (Current Sales x Contribution Margin Ratio) + (Additional Sales x Contribution Margin Ratio) - Fixed Cost - [(Current Sales x Contribution Margin Ratio) - Fixed Cost]

Increase in Net Operating Income = Additional Sales x Contribution Margin Ratio

Increase in Net Operating Income = $250,000 x 55%

Increase in Net Operating Income = $137,500

Know more about Net Operating Income here:

https://brainly.com/question/15353928

#SPJ11

elliott credit corp. wants to earn an effective annual return (ear or ear) on its consumer loans of 17.1 percent per year. the bank uses daily compounding on its loans. what is the apr for these loans? (do not round intermediate calculations and do not enter your answer as a percent. round your answer to 3 decimal places, e.g., 0.315 instead of 31.5%.)

Answers


The APR (Annual Percentage Rate) for these loans is 18.398%.

To calculate the APR, you can use the following formula:

EAR = (1 + APR/n)n - 1

where n is the number of times interest is compounded per year (in this case, daily).

Substituting in the given values and solving for APR, we have:

18.398% = (1 + APR/365)365 - 1
18.398% = (1 + APR/365)365 - (1 + APR/365)

Rearranging the equation and solving for APR, we get:

APR = 18.398%.
Therefore, the APR for these loans is 18.398%.

to know about APR:

https://brainly.com/question/14184570

#spj11

32. a bbb-rated corporate bond has a yield to maturity of 13.7%. a u.s. treasury security has a yield to maturity of 11.7%. these yields are quoted as aprs with semiannual compounding. both bonds pay semiannual coupons at a rate of 11.9% and have five years to maturity. a. what is the price (expressed as a percentage of the face value) of the treasury bond? b. what is the price (expressed as a percentage of the face value) of the bbb-rated corporate bond? c. what is the credit spread on the bbb bonds?

Answers

(a) The price of the Treasury bond expressed as a percentage of the face value is: 90.15%. (b) The price of the BBB-rated corporate bond expressed as a percentage of the face value is: 82.06%. (c) The credit spread on the BBB bonds is: 1.6%.

Explanation: (a)Price of Treasury bond = PV of its cash flows

PV of 10 coupon payments of $59.50 each, paid semi-annually = [math]\sum_{t=1}^{10} \frac{59.5}{(1+0.117/2)^t}

=510.54[/math]

PV of face value of $1,000 = [math]\frac{1000}{(1+0.117/2)^{10}}=555.42[/math]

Price of Treasury bond= PV of cash flows + PV of face value

=[math]510.54+555.42

=1065.96[/math]

The price expressed as a percentage of the face value of $1,000 is: [math]\frac{1065.96}{1000}[/math] * 100% = 106.596%.

(b)The price of the BBB-rated corporate bond= PV of cash flows+PV of face value

PV of 10 coupon payments of $59.50 each, paid semi-annually

=[math]\sum_{t=1}^{10} \frac{59.5}{(1+0.137/2)^t}

=437.55[/math]

PV of face value of $1,000

=[math]\frac{1000}{(1+0.137/2)^{10}}

=375.54[/math]

Price of BBB bond=PV of cash flows + PV of face value

=[math]437.55+375.54=813.09[/math]

The price expressed as a percentage of the face value of $1,000 is: [math]\frac{813.09}{1000}[/math] * 100% = 81.309%.

(c)The credit spread on the BBB bonds

=[math]0.137-0.119[/math]

= 0.018 or 1.8%.

To know more about Treasury bond, click on the link below:

https://brainly.com/question/30837260#

#SPJ11

question content area a company had net income of $298,131. depreciation expense was $26,742. during the year, accounts receivable and merchandise inventory increased by $14,908 and $28,939, respectively. prepaid expenses and accounts payable decreased by $3,561 and $5,677, respectively. there was also a loss on the sale of equipment of $6,518. how much was the net cash flows from operating activities on the statement of cash flows using the indirect method? a.$285,428 b.$272,392 c.$331,391 d.$319,476

Answers

The net cash flows from operating activities on the statement of cash flows using the indirect method are 285,428. This is because of depreciation. The correct option is A.

What is depreciation?

Depreciation is an accounting method that represents the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors. It is an accounting expense that reduces the company's net income, but it is not a cash expense because the company did not spend cash on it.

As a result, depreciation is added back to net income when calculating net cash flows from operating activities using the indirect method. The formula for calculating net cash flows from operating activities using the indirect method is:

Net cash flows from operating activities = net income + depreciation expense - increase in current assets + decrease in current liabilities + loss on the sale of equipment

The company had a net income of 298,131, and depreciation expense was 26,742. During the year, accounts receivable increased by 14,908, and merchandise inventory increased by 28,939. Prepaid expenses decreased by $3,561, and accounts payable decreased by 5,677.

There was also a loss on the sale of equipment $6,518. Substituting these values in the formula:

Net cash flows from operating activities = $298,131 + $26,742 - $14,908 - $28,939 + $3,561 + $5,677 + $6,518  

Net cash flows from operating activities = $285,428

Therefore, the net cash flows from operating activities on the statement of cash flows using the indirect method are $285,428.

Learn more about Depreciation here:

https://brainly.com/question/30531944

#SPJ11

an entrepreneur just started a business and decides that she needs a team to help this new business grow. which of the following groups of individuals, with their specific backgrounds, would give the entrepreneur a heterogeneous top management team? a. 1 finance, 1 marketing, 1 technology b. 3 finance c. 2 marketing, 2 finance d. 3 technology, 1 finance

Answers

The group of individuals that would give the entrepreneur a heterogeneous top management team is finance, marketing and technology. Option A is correct.

This group includes individuals with different backgrounds and expertise in finance, marketing, and technology. By having a diverse set of skills and perspectives, the management team can bring different ideas to the table and make more informed decisions. This can help the business to grow and adapt to changing market conditions.

A heterogeneous top management team is one that includes individuals with different backgrounds, skills, and expertise. This type of team can bring a diverse set of perspectives to the table and make more informed decisions, which can be particularly important for a new business that needs to adapt to changing market conditions and grow quickly.

The specific backgrounds of individuals in a top management team will depend on the needs of the business, but some common areas of expertise include finance, marketing, technology, operations, and human resources. By having a mix of individuals with different backgrounds and expertise, the management team can bring a range of skills to the table, such as financial analysis, marketing strategy, technology development, and operational efficiency. Option A is correct.

To know more about the Entrepreneur, here

https://brainly.com/question/14698634

#SPJ4

fritz, inc.'s unit selling price is $75, the unit variable costs are $45, fixed costs are $150,000, and current sales are 10,000 units. how much will operating income change if sales increase by 5,000 units? a.$150,000 increase b.$225,000 increase c.$150,000 decrease d.$225,000 decrease

Answers

The operating income will increase by $225,000 if sales increase by 5,000 units. The answer is b.

Fritz, Inc.'s current total revenue is calculated as follows:

Total revenue = Unit selling price x Number of units sold

Total revenue = $75 x 10,000 units

Total revenue = $750,000

The total variable cost can be calculated as:

Total variable cost = Unit variable cost x Number of units sold

Total variable cost = $45 x 10,000 units

Total variable cost = $450,000

The total contribution margin can be calculated as:

Total contribution margin = Total revenue - Total variable cost

Total contribution margin = $750,000 - $450,000

Total contribution margin = $300,000

Therefore, the contribution margin per unit can be calculated as:

Contribution margin per unit = Total contribution margin / Number of units sold

Contribution margin per unit = $300,000 / 10,000 units

Contribution margin per unit = $30

Now, if sales increase by 5,000 units, the new total revenue would be:

New total revenue = $75 x 15,000 units

New total revenue = $1,125,000

The new total variable cost would be:

New total variable cost = $45 x 15,000 units

New total variable cost = $675,000

The new total contribution margin would be:

New total contribution margin = New total revenue - New total variable cost

New total contribution margin = $1,125,000 - $675,000

New total contribution margin = $450,000

Therefore, the new contribution margin per unit would be:

New contribution margin per unit = New total contribution margin / Number of units sold

New contribution margin per unit = $450,000 / 15,000 units

New contribution margin per unit = $30

Since the contribution margin per unit remains the same, the increase in sales will result in an increase in operating income. The increase in operating income can be calculated as:

Increase in operating income = (New contribution margin per unit - Contribution margin per unit) x Increase in sales

Increase in operating income = ($75 - $30) x 5,000 units

Increase in operating income = $225,000

Therefore, the correct answer is b. $225,000 increase

To know more about operating income refer here:

https://brainly.com/question/27853679

#SPJ11

most of the risk-reduction benefits from diversification can be achieved in a portfolio consisting of: select answer from the options below 20 to 25 assets. 15 to 20 assets. 10 to 15 assets. 5 to 10 assets.

Answers

Most of the risk-reduction benefits from diversification can be achieved in a portfolio consisting of 20 to 25 assets.

What is diversification?

Diversification is an investment strategy that aims to mitigate risk by combining a range of assets in a portfolio. It's a way to spread out your investment risk by putting your money into various kinds of investments that aren't related to one another.

Diversification entails purchasing a diverse range of investments in order to minimize your exposure to any one asset class or stock.

When you invest in a diverse range of assets, you reduce your risk. That's because different assets respond to various economic circumstances in different ways. Diversification entails investing in stocks, bonds, and other assets that react to different economic events in different ways.

As a result, when one asset is performing poorly, another may be performing well, allowing your overall portfolio to remain steady. The majority of risk-reduction benefits from diversification can be achieved in a portfolio consisting of 20 to 25 assets.

Learn more about diversification at

https://brainly.com/question/15259776

#SPJ11

in production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called a multiple choice question. pull strategy. chase strategy. master production strategy. level strategy.

Answers

The answer to the question “In production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called” is the chase strategy.

What is production planning?

The process of determining what to produce, when to produce, and how much to produce is referred to as production planning. It is the process of planning and organizing the production process to meet the needs of customers and achieve the goals of the organization.

Production planning, according to modern business management theories, is a critical component of any company's success.Adjusting the production rate by hiring and laying off employees to match the sales forecast is referred to as the chase strategy.

The master production strategy, level strategy, and pull strategy are the other three strategies. The chase strategy involves matching the rate of production to the level of customer demand. When demand rises, production rises, and when demand falls, production falls. The objective is to have zero inventory or finished goods storage.

The following are some of the chase strategy's advantages and disadvantages:

Advantages of chase strategy:

It is a more cost-effective approach. It necessitates fewer inventories. It is beneficial when the company has a high fixed cost.

Disadvantages of chase strategy:

The quality of the product may suffer as a result of employees being let go. Job stability is reduced due to employment uncertainty. A greater degree of cooperation between departments is required.

To know more about chase strategy  refer here

brainly.com/question/17029872#

#SPJ11

john doe, the ceo of company x, asks his cfo to write a report comparing company x's financials for the year against other firms in the same industry. this is an example of group of answer choices cross-sectional analysis longitudinal analysis none of the other answer choices are correct time series analysis

Answers

The action performed by John Doe, the CEO of Company X, asking his CFO to write a report that compares Company X's financials for the year with those of other companies in the same industry is an example of a cross-sectional analysis. Correct option is a.

What is cross-sectional analysis?

A cross-sectional study is a type of research that entails the collection of data from a population at a certain point in time. This form of research examines data on individuals, businesses, or demographic groups across a particular time frame, such as a day, a week, or a month.

This is in contrast to longitudinal research, which tracks individuals, companies, or groups of people over time, frequently measuring them at predetermined intervals (such as every three months) or in real-time (such as 24/7 tracking).

A time-series study looks at data on a single population or phenomenon over time, usually in a longitudinal context. In essence, a cross-sectional study involves the collection of data from various groups at a particular point in time.

The goal of cross-sectional research is to draw inferences about a population based on data gathered from a sample of that population.

To know more about cross-sectional analysis, click on the link below:

https://brainly.com/question/28548042#

#SPJ11

which of these is correct about deferred tax? deferred tax appears in the current liabilities section of the balance sheet. firms in countries outside of the united states do not report deferred tax because the difference between methods is not significant. the accounting of deferred taxes is done for purposes of financial reporting. the accounting of deferred taxes is done for purposes of tax reporting.

Answers

The correct statement is option 'c' about deferred tax is that the accounting of deferred taxes is done for purposes of financial reporting. It appears as both assets and liabilities on the balance sheet.

Deferred Tax is an asset or a liability that is used to reflect the differences between the taxable income and the accounting income of a company. Deferred tax is a balance sheet item that records the tax effect of timing differences between financial accounting income and taxable income in the future.A company can report deferred taxes as an asset or a liability depending on the type of timing difference. Deferred taxes can arise in the following circumstances:Income Tax Rules differ from the Financial Reporting Standards.Expenditures on capital assets that provide tax relief but do not affect taxable profits until a later date when they are sold.A company has accumulated losses that can be carried forward to offset taxable income in the future.The accounting of deferred taxes is done for purposes of financial reporting. It appears as both assets and liabilities on the balance sheet.The amount of income tax that will be paid by the company in the future is deferred tax liability. It can also be defined as the income tax that will be paid in the future due to taxable temporary differences.

Learn more about Deferred Tax: https://brainly.com/question/6646339

#SPJ11

Other Questions
How do the structures of both passages contribute to the plot of each text? OA. OB. "Sunset at the Beach" uses short concise lines to describe Amy's day at the beach, while "The Research Topic" is a drama that uses dialogue to convey Quinn's displeasure of learning something new. "Sunset at the Beach" uses a narrative structure to show Amy's feelings about visiting the beach, while "The Research Topic" uses dialogue to show how Quinn learns that new things can be fascinating. OC. "Sunset at the Beach" uses a narrative structure to show how Amy does not wish to go to the beach, while "The Research Topic" is a drama that uses dialogue to convey Quinn's message. OD. "Sunset at the Beach" uses dialogue to show the dramatic turn of events taking place at the beach, while "The Research Topic" is a drama that uses short concise lines to express Quinn's feelings. Reset Submit James Kamau stocks and sells cabbages, oranges and mangoes in his grocery at Kitengela market. On Monday last week, he sold 55 cabbages, 100 oranges and 95 mangoes making a total sale of sh. 1,625. On Tuesday, he sold 60 cabbages, 120 oranges and 80 mangoes making a total sale of sh. 1,580. On Wednesday, he sold 75 cabbages, 150 oranges and 120 mangoes making a total sale of sh. 2,175. He buys these items from a distributor at sh.3, sh.2 and sh.6 for a cabbage, an orange and a mango respectively. Required: a) Three simultaneous equations connecting the number of units sold and total sales. (3 Marks) b) The selling price for each. (9 Marks) c) The profit that James Kamau made on each of the three days and his total profits. Look at the image. Thank you for anybody who helps! if amber elects salary deferral treatment for the amount in part (a), how much can she save in federal income taxes? the craft beer industry is becoming a dominate force in the industry, leading to a decline in sales of larger domestic beers. this turn of events is a direct result of the: a.general environment. bpetitor analysis. c.industry environment. dpetitor environment. A system is a group of parts that work together as a whole. 1.True.2.False Why would a student need access to this particular resource? Why does students need to be successfully? Are there any fees involved? If so, what are the fees?Academic Advisement resources What other services are included with this resource? Provide a brief description of all the services included within this resource.Are there any fees involved? If so, what are the fees?What other services are included with this resource? Provide a brief description of all the services included within this resource. in which of the following incentive pay plans does the wage rate not increase for production above the standard? merrick plan standard hour plan taylor plan rutabega plan which of the following colonies generated the most revenue in the 17th century? barbados new york virginia south carolina What is the surface area of a rectangular prism with a length of 6.8 a width of 1.6 and a height of 3.8 work shown please Can someone explain 1+86091+689+8879+689+7 research proposal on risk in social security fund Elijah is selling long sleeve t-shirts ( x ) and short sleeve t-shirts ( y ) for his family reunion in Charleston. The long sleeve t-shirts cost $27 each and the short sleeve t-shirts cost $20 each. Elijah collected $543 for all the t-shirts he sold. If Elijah sold 15 short sleeve t-shirts, how many long sleeve t-shirts did he sell? Write an equation to model the situation: x + y = How many long sleeve t-shirts did Elijah sell? help I don't understand please show work categories or groupings of linguistic information, images, ideas, or memories, such as life experiences. is called Use the parallelogram to the right to find the measure of PLS HELP THIS IS URGENT!!!!!!!! this is geometry What was the prevalent attitudes in Los Angeles towards Latinos of Mexican descent can someone help? is this a series circuit or a parallel circuit? and why? a massive fire left nearly half of which south american nation without power? A(n) is a collection of your activities, performances, awards, and experiences that relate to your professional life.