Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,200 $600 40% Tablets 700 350 60% The estimated fixed costs for the current year are $4,500,000. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. fill in the blank 1 units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops fill in the blank 2 units Tablets fill in the blank 3 units 3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different

Answers

Answer 1

Answer: See explanation

Explanation:

1. The estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year will be calculated thus:

Selling price per unit will be:

= ($1200 × 40%) + ($700 × 60%)

= 480 + 420

= $900

Variable cost per unit will be:

= ($600 × 40%) + ($350 × 60%)

= 240 + 210

= $450

Contribution margin will then be

= selling price per unit-variable cost

= $900 - $450

= $450

Therefore, the breakeven point in sales units of the overall product will be:

= fixed cost /contribution per unit

= $4,500,000 / $450

= 10000 units

2. The unit sales of both laptops and tablets for the current year will be:

Laptop = 10000 × 40% = 4000

Tablet = 10000 × 60% = 6000

3. Assume that the sales mix was 60% laptops and 40% tablet, the break-even will be:

Selling price per unit will be:

= ($1200 × 60%) + ($700 × 40%)

= 720 + 280

= $1000

Variable cost per unit will be:

= ($600 × 60%) + ($350 × 40%)

= 360 + 140

= $500

Contribution margin will then be

= selling price per unit-variable cost

= $1000 - $500

= $500

Therefore, the breakeven point in sales units of the overall product will be:

= fixed cost /contribution per unit

= $4,500,000 / $500

= 9000 units


Related Questions

Which career is best described by someone who organizes and tracks merchandise during storage and display?
O Wholesale Buyer
Marking Clerk
Purchasing Agent
Stock Clerk

Answers

Answer:

stock clerk

Explanation:

Answer:

D Stock Clerck :))))

Joint-cost allocation, insurance settlement Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2009 is:
Wholesale Selling Price per Pound
Parts Pound of Product When Production Is Complete
Joint cost of production in July 2009 was $50.
A special shipment of 40 pounds of breasts and 15 pounds of wings has been destroyed in a fire. Quality Chicken’s insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process.
1. Compute the cost of the special shipment destroyed using the following:
a. Sales value at splitoff method.
b. Physical-measure method (pounds of finished product).
2. What joint-cost-allocation method would you recommend Quality Chicken use? Explain.

Answers

Question Completion:

                  Sales Qty        Sales

                in Pound (A)   Rate (B)

Breasts           100            $0.55

Wings              20              $0.20

Thighs             40              $0.35  

Bones             80              $0.10    

Feathers          10              $0.05

Answer:

Quality Chicken

1. The cost of the special shipment destroyed using the following:

a. Sales value at splitoff method:

Product Line cost of the special shipment destroyed

                                  Breasts      Wings       Total

Qty Lost

(in Pound)                       40             15            55

Joint cost Per Pound  $0.34     $0.12

Cost of destroyed     $13.50      $1.84       $15.34

b. Physical-measure method (pounds of finished product):

Product Line cost of the special shipment destroyed

                                  Breasts      Wings       Total

Qty Lost

(in Pound)                       40             15            55

Joint cost Per Pound  $0.20     $0.20

Cost of destroyed       $8.00      $3.00      $11.00

2. The sales value at split-off method is recommended.  It assess different inventories according to their relative market values instead of their historical costs.

Explanation:

a) Data and Calculations:

                  Sales Qty     Sales    Sales value  Joint Cost

                   in Pound      Rate    at Split-off      Allocated

Breasts           100          $0.55      $55.00      $33.74 ($55/$81.50) * $50

Wings              20            $0.20          4.00          2.45 ($4/$81.50) * $50

Thighs             40            $0.35         14.00          8.59 ($14/$81.50) * $50  

Bones             80            $0.10            8.00          4.91 ($8/$81.50) * $50  

Feathers          10           $0.05           0.50          0.31 ($0.50/$81.50) * $50  

Total            250                              $81.50    $50.00

           Joint Cost

          Per Pound

Breasts    $0.34 ($33.74/100)

Wings       $0.12 ($2.45/20)

Thighs     $0.21 ($8.59/40)

Bones     $0.06 ($4.91/80)

Feathers $0.03 ($0.31/10)

Product Line cost of the special shipment destroyed

                                  Breasts      Wings       Total

Qty Lost

(in Pound)                       40             15            55

Joint cost Per Pound  $0.34     $0.12

Cost of destroyed     $13.50      $1.84       $15.34

Physical-Measure Method:

                            Breasts    Wings    Thighs     Bones    Feathers     Total

Qty in Pound                  100          20          40            80             10           250

Allocation of joint cost $20         $4         $8          $16          $2          $50

Weights                          40%        8%       16%         32%         4%        100%

Cost per unit               $0.20     $0.20   $0.20      $0.20      $0.20

Cost of Product destroyed:

Breasts = $8 ($0.20 * 40)

Wings =   $3 ($0.20 * 15)

Total =     $11

On January 1 of this year, Barnett Corporation sold bonds with a face value of $500,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases.

Complete the table below using the factors provided.

Case A (7%) Case B (8%) Case C (6%)
Cash received at issuance
Interest expense recorded in Year 1
Cash paid for interest in Year 1
Cash paid at maturity for bond principal

Answers

Answer:

Barnett Corporation

Table

                                                       Case A (7%)  Case B (8%)   Case C (6%)

Cash received at issuance             $500,000  $466,449.59  $536,800.44

Interest expense recorded in Year 1  35,000        37,315.97       32,208.03

Cash paid for interest in Year 1          35,000       35,000            35,000

Cash paid at maturity for

  bond principal                              $500,000  $500,000       $500,000  

Explanation:

a) Data and Calculations:

Face value of bonds issued = $500,000

Coupon rate = 7% annually

Maturity period = 10 years

                                                       Case A (7%)  Case B (8%)   Case C (6%)

Cash received at issuance             $500,000  $466,449.59  $536,800.44

Interest expense recorded in Year 1  35,000        37,315.97       32,208.03

Cash paid for interest in Year 1          35,000       35,000            35,000

Cash paid at maturity for

  bond principal                              $500,000  $500,000       $500,000  

Bonds Issuance                          At Par value    At Discount   At Premium

Cash received at issuance:

Case A (7%) Issued at par value

PV = Face Value/(1+0.07)^10

= $500,000/(1.07)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  7

PMT (Periodic Payment)  35000

FV (Future Value)  500000

Results

PV = $500,000.00

Sum of all periodic payments $350,000.00

Total Interest $350,000.00

Interest expense for the first year = $35,000 ($500,000 * 7%)

Case B (8%) Issued at a discount

PV = Face Value/(1+0.08)^10

= $500,000/(1.08)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  8

PMT (Periodic Payment)  35000

FV (Future Value)  500000

Results

PV = $466,449.59

Sum of all periodic payments $350,000.00

Total Interest $383,550.41

Interest expense for the first year = $37,315.97 ($466,449.59 * 8%)

Case C (6%) Issued at a premium

PV = Face Value/(1+0.06)^10

= $500,000/(1.06)^10

From an online calculator:

N (# of periods)  10

I/Y (Interest per year)  6

PMT (Periodic Payment) = 35000

FV (Future Value)  

500000

Results

PV = $536,800.44

Sum of all periodic payments = $350,000.00

Total Interest $313,199.56

Interest expense for the first year = $32,208.03 ($536,800.44 * 6%)

XYZ Company allocates fixed overhead costs based on direct labor dollars, with an allocation rate of $5 per DL$. XYZ sells 1,000 units of product X per month at a price of $20 per unit. The variable costs are: direct materials $5/unit, direct labor $2/unit, and variable overhead $1/unit. Compute the profit margin per unit of product X Group of answer choices $10 per unit $10.75 per unit $12 per unit $13 per unit $2 per unit

Answers

Answer:

See below

Explanation:

Given that;

Price per unit = $20

Direct labor cost = $2

Direct material cost = $5

Overhead cost = $1

Fixed overhead allocation= $5 per direct labor cost = $5 × $2 = $10

Total expenses = $2 + $5 + $1 + $10 = $18

Therefore , profit margin

= Price per unit - Total expenses

= $20 - $18

= $2

On January 1 of this year, Houston Company issued a bond with a face value of $18,000 and a coupon rate of 6 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Houston uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. (Enter all values as positive values.)

Answers

Answer:

Houston Company

The Bonds Amortization Schedule

Period PV                           PMT         Interest         FV

1          $18,490.18         $1,080.00         $924.51         $18,334.69

2         $18,334.69        $1,080.00         $916.73         $18,171.43

3         $18,171.43          $1,080.00         $908.57         $18,000.00

Explanation:

a) Data and Calculations:

Face value of bond = $18,000

Coupon rate = 6%

Annual coupon payment = $1,080 ($18,000 * 6%)

From an online financial calculator, the PV of the bond = $18,490.18:

N (# of periods)  3

I/Y (Interest per year)  5

PMT (Periodic Payment) = $1,080

FV (Future Value)  = $18,000

Results

PV = $18,490.18

Sum of all periodic payments = $3,240.00

Total Interest = $2,749.82

On December 31, 2019, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $8,482 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-line method of depreciation for all of its plant assets. Metlockâs incremental borrowing rate is 5%, and the lessorâs implicit rate is unknown.

Required:
Compute the present value of the lease payments.

Answers

Answer:

$38,559

Explanation:

Computation of present value of lease payments

Using this formula

Present value of lease payments=annual payments*Present value of an annuity due of 1 for 5 periods at 5%

Let plug in the formula

Present value of lease payments=$8,482 × 4.54595

Present value of lease payments= $38,559

Therefore the present value of lease payments is $38,559

Net Present Value Analysis [LO12-2] Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $ 275,000
Working capital required $ 100,000
Annual net cash receipts $ 120,000
Cost to construct new roads in year three $ 40,000
Salvage value of equipment in four years $ 65,000
Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 20%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
a. What is the net present value of the proposed mining project?
b. Should the project be accepted?

Answers

Answer:

NPV = $-56,153.55

The project should not be accepted because the NPV is negative

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

because it is the most profitable.

Cash flow in year 0 = $275,000 + $100,000 = $-375,000

Cash flow in year 1 = $ 120,000

Cash flow in year 2 = $ 120,000

Cash flow in year 3 = $ 120,000 - $40,000 = $80,000

Cash flow in year 4 = $ 120,000 + $65,000 = $185,000

I = 20%

NPV = $-56,153.55

The project should not be accepted because the NPV is negative

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Companies often require non-disclosure agreements from their employees because a non-disclosure agreement

allows the employer to release private information about employees if necessary
identifies all the different ways an employee could violate company policies
maintains employee trust, which is needed for productivity and therefore profitability
provides for a documented exchange of information between employees and employers

Answers

A non-disclosure agreement (NDA) is a legally binding contract that establishes a confidential connection. The signatory(s) declare that they will not share any private information they may gather with outside parties. As a result, choice (B) is acceptable.

What is non-disclosure agreement (NDA)?

Companies regularly utilize non-disclosure agreements while engaging in discussions with other businesses. They provide the parties the ability to communicate privately without being concerned that their competitors will learn about it. In this case, it might be referred to as a mutual non-disclosure agreement.

It is common for the NDA to be signed before any discussions between companies about potential joint ventures.

NDAs are commonly requested of employees in order to protect a company's confidential business information.

Hence, option (B) is accurate.

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USCo manufactures and markets electrical components. USCo operates outside the United States through a number of CFCs, each of which is organized in a different country. These CFCs derived the following income for the current year:
Determine the amount of income that USCo must report as a deemed dividend under subpart F in each scenario. (Leave no answer blank. Enter zero if applicable. Enter your answers in millions.)
a. F1 has gross income of $14.00 million, including $700,000 of foreign personal holding company interest and $13.30 million of gross income from the sale of inventory that F1 manufactured at a factory located within its home country.
b. F2 has gross income of $8.6 million, including $6.9 million of foreign personal holding company interest and $1.7 million of gross income from the sale of inventory that F2 manufactured at a factory located within its home country.

Answers

Answer:

A. $26.6 million

B. $3.4 million

Explanation:

A. Calculation to determine the amount of income that USCo must report as a deemed dividend under subpart F

Using this formula

Income to be redeemed=(Gross income -Foreign personal holding company interest+Gross income from the sale of inventory)

Let plug in the formula

Income to be redeemed=($14.00 million-$700,000+$13.30 million)

Income to be redeemed=$26.6million

Therefore the amount of income that USCo must report as a deemed dividend under subpart F is $26.6million

B. Calculation to determine the amount of income that USCo must report as a deemed dividend under subpart F

Using this formula

Income to be redeemed=

Gross income -Foreign personal holding company interest +Gross income from the sale of inventory

Let Plug in the formula

Income to be redeemed=($8.6 million-$6.9 million+$1.7 million)

Income to be redeemed=$3.4milliomln

Therefore the amount of income that USCo must report as a deemed dividend under subpart F is $3.4million

The act of attempting to acquire information such as user names passwords and credit card details by acting as a trustworthy entity in an electric communication is called

Answers

Phishing is the practice of pretending to be a reliable entity in an electronic conversation in order to get sensitive data such as usernames, passwords, credit card information, and occasionally even money (indirectly).

What happens when someone pretends to be a reliable internet source in order to try and get information like usernames or passwords?

Phishing is the fraudulent act of pretending to be a reliable entity in an electronic contact in order to get sensitive information like usernames, passwords, and credit card numbers.

Is it an attempt to get sensitive information such credit card numbers, usernames, and passwords?

Phishing is the practice of pretending to be a reliable entity in an electronic communication in order to get sensitive data, such as usernames, passwords, and credit card numbers.

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To continue to receive federal student aid while attending college, students
academic progress.
must show
O A. selective
B. completed
C. satisfactory
OD. exceptional

Answers

FEDERAL STUDENT AID

The answer is C. satisfactory.

To continue to receive federal student aid while attending college, students must show satisfactory academic progress. This means that they must maintain a certain grade point average (GPA) and complete a certain percentage of the classes they attempt. These requirements vary depending on the school and the type of federal student aid the student is receiving. In general, students must maintain a GPA of at least 2.0 (on a 4.0 scale) and complete at least 67% of their classes in order to remain eligible for federal student aid. If students fail to meet these requirements, they may be placed on academic probation or lose their financial aid altogether. It is important for students to make sure they are making satisfactory progress in order to continue receiving financial assistance while in school.

Hope This Helps You!

Answer:

C

Explanation:

George was in an automobile accident. According to the police report, he was responsible for causing the wreck. The accident was large enough to close down the interstate for an hour. The three people in the other car were rushed to the hospital. The costs associated with the rescue and medical care were $18,000 for each person. Based on the facts of the case, which of the following statements is true?

I. George can expect his PAP premiums to increase in the future.
II. George will be personally liable for any excess damages not covered by insurance.
III. George’s future liability will be exempt if he can prove that he was covered at the state insurance minimum level.

a. I and III only.
b. I and II only.
c. III only.
d. I only.

Answers

Answer:

c. III only.

Explanation:

George is responsible for the damages caused but it is also out of control from the George since he does not willingly does the accident. His liability turn out to be $18,000 for the medical care that the victims of the accident incurred. He can exempt his future liability if he can prove that he was covered at state insurance.

The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is:

A. Applied Manufacturing Overhead xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
B. Applied Manufacturing Overhead xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
C. Applied Manufacturing Overhead xxx
Work-In-Process Inventory xxx
Finished Goods Inventory xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
D. Applied Manufacturing Overhead xxx
Work-In-Process Inventory xxx
Finished Goods Inventory xxx
Cost of Goods Sold xxx
Manufacturing Overhead Control xxx
Option A
Option B
Option C
Option D

Answers

Answer:

Option C

Explanation:

The journal entry to write-off underapplied overhead is shown below:

Applied Manufacturing Overhead xxx

        To Work-In-Process Inventory xxx

        To Finished Goods Inventory xxx

        To Cost of Goods Sold xxx

        To Manufacturing Overhead Control xxx

(Being the underapplied overhead written off is recorded)

The work in process inventory, finished goods inventory, and the cost of goods sold would be written off based on the overhead applied.

In late​ 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times​, Javier Corrales​ argued, "The government is making the crisis worse by...imposing more price​ controls." ​Source: Javier​ Corrales, "The Venezuelan Crisis Is Part of​ Maduro's Plan," New York Times​, September​ 25, 2018. ​Shouldn't price controls help reduce malnutrition by lowering the price of food so more people can afford​ it? A. No. Price controls are intended exclusively to help support farmers to ensure that they are receiving a high enough price for their products to be able to keep supplying food. B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller​ quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control. C. Yes. Price​ controls, by​ definition, will always help reduce malnutrition by lowering the price of food so more people can afford it. D. No. Imposing a price control above the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller​ quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.

Answers

Answer: B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller​ quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.

Explanation:

If price controls are introduced below the equilibrium price in the market, farmers or sellers will supply less to the market because they will not be incentivized to produce more seeing as they are not making what they should be making.

This, coupled with increased demand on account of food being cheaper, will lead to shortages which would mean that those that could have been able to afford the food at the equilibrium price would not be able to access food leading to even worse food shortages.

Different cultures have different ways of greeting each other in the business world.
Is this statement true or false?

A. true
B. false

Answers

Answer:

this statement is true.............

The answer is true hope it helps

Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,500 Dividends paid to the company's shareholders $ 70,000 Collection by McCorey of a loan made to another company $ 46,000 Payment of taxes to governmental bodies $ 25,500 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be

Answers

Answer:

The net cash provided by investing activities on the statement of cash flows will be $106,000

Explanation:

Investing activities include all the cash transactions incurred for the fixed asset of the company.

The net cash provided by (used in) investing activities can be calculated as follows

Net cash provided by (used in) investing activities = Sale of long-term investment + Collection by McCorey of a loan made to another company

Where

Sale of long-term investment = $60,000 ( Cash inflow )

Collection by McCorey of a loan made to another company = $46,000 ( Cash Inflow )

Placing values in the fomrula

Net cash provided by investing activities = $60,000 + $46,000 = $106,000

All of the following are unacceptable ways to sit during an interview except.
A. with your legs stretched out in front of you.
B. with your legs crossed at the ankles.
C. sitting cross-legged.
D. with your legs crossed at the thigh.

Answers

With your legs crossed at the ankles
Answer (B)

Answer:

With your legs crossed at the ankles

Explanation:

B

Choose from the option list provided the procedure the auditor could implement to test the operating effectiveness of the internal control for each of the following situations. Each choice may be used once, more than once, or not at all.
1. To determine that all credit sales transactions of an entity are recorded.
2. To detect a failure to post invoices to customers' accounts ledger.
3. To detect failure to invoice a shipment.
4. To ensure sales orders are properly authorized.
5. To determine goods sent to customers are based only on authorized sales orders.
6. To verify the completeness of cash receipts for cash sales at a retail outlet
7. To ensure cash receipts are deposited.

Answers

Answer:

Note: Missing word (list) are attached as picture below

1. To determine that all credit sales transaction of an entity are recorded

Procedure to implement: Match pre-numbered shipping documents with entries in sales journal.

2. To detect a failure to post invoice to customer account ledger

Procedure to implement: Trace Sales invoices to account receivable subsidiary ledger

3. To detect failure to invoice a shipment

Procedure to implement: Vouch bill of lading file to approved sales invoice

4. To ensure sales orders are properly authorized

Procedure to implement: Confirm sales orders were sent to the credit department

5. To determine goods sent to customers are based only on authorised sales order

Procedure to implement: Match bill of lading file to approved sales order

6. To verify the completeness of cash receipts for cash sales at a retail outlet

Procedure to implement: Observe consistency of employee's use cash registers and tapes

7. To ensure cash receipts are deposited

Procedure to implement: Compare daily cash receipts total with bank deposits

The employers who physically move inventory items for storage or shipment are called _____.
A.) Shipping clerks
B.) Receiving clerks
C.) Logisticians
D.) Materials Handlers

Answers

Answer:

Materials Handlers

The employers who physically move items for storage or shipment are known as the materials handlers. The materials handlers are those who have worked almost on their own. Hence, option D is appropriate.

Who are the Material handlers?

The material handlers are tasked with the job to look after the materials or the commodities which are going to be supplied. These materials need to be taken into custody.

The task of the material handlers is to pull and check the products of the customers as well as the clients. Thus, by allowing the Quality Assurance of the product.

The Materials handlers also verify the productsby pulling up the inventory. Hence, option D is correct.

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Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $27,900. The unit contribution margins and sales mix anticipated by the company are as follows: Unit Contribution Margin Sales Mix Candy $1.50 50% Nuts $2.00 30% Cookies $1.00 20% What would be the weighted average contribution margin

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Do not go to the link its bad

A new strip mall is being considered and the developers want to determine how many parking spaces there should be. It is assumed that if the lot is full, an arriving car will leave. Cars arrive at a rate of 15/hour. The average time a customer spends shopping is 30 minutes. Assume the interarrival times and the shopping times are exponentially distributed. Assume the average shopper purchases $150 worth of merchandise and also assume the mall is open 12 hours/day, 350 days/year.
a) If there are 10 spaces, determine the throughput rate of cars departing after completing shopping, the expected number of cars in the parking lot and the rate of lost revenue due to cars leaving because they could not find a space to park.
b) Assume the cost to create a parking spot is $2500. Assuming a 5 year horizon and an internal interest rate of 15%, how many spots should be built to minimize the combined construction and lost revenue costs?

Answers

Answer:

The responses to the given question can be defined as follows:

Explanation:

For point a:

Car arrival time[tex]= \frac{15}{hour}[/tex]

Each car arrives at an interval of time of [tex]\frac{60}{15} = 4\ minutes[/tex]

process time [tex]=0.5 \ hour[/tex]

The number of vehicles moving in an hour equals 2 per hour.

As [tex]\frac{15}{2}[/tex] is greater than 1. The device will not work, resulting in such a revenue loss.

Within 44 minutes, a parking lot would be completely full, with only 1 person being serviced, and then the next empty slot would be completed 64 minutes later.

The system's production capacity is 8.5 per hour [a person entering at 0 will exit at 30]. The person that comes in at 4 will leave at 34. Roughly 50 customers would be supported for an hour.

For point b:

The number of customers would be [tex]= 8.5 \times 12 = 102[/tex] for a 12-hour time frame.

Total cost=[tex]12\times 150 = \$1800[/tex]

The total number of customers to be served at an expense of [tex]2500= \frac{2500}{150} = 18[/tex] customers.

the graph at right shows the situation after the u.s. removes a tariff on imports of canned tuna.
A. C.
B. A+B+C+D.
C. A.
D. B+C+D.
Which area shows the loss in producer surplus?
A. B+C+D.
B. A+B.
C. A.
D. A+B+C+D.
Which area shows the loss in government tariff revenue?
A. A.
B. C.
C. A+B+C+D.
D. B+C+D.
Which areas show the reduction in deadweight loss?
A. B+C+D.

Answers

The graph that shows the situation when the U.S. removes a tariff on imports of canned tuna shows that the gain in consumer surplus is B. A+B+C+D.

The area which shows the loss of producer surplus is  C. A.

The area which shows the loss in government tariff revenue is B. C.

The area showing a reduction in deadweight loss is B+D.

What happens when a tariffs are lifted ?

When a tariff is lifted, the price of the good or service usually decreases, which increases consumer surplus. Consumers are able to purchase the same goods and services for a lower price, which results in a larger consumer surplus.

The price of the good or service usually decreases, which decreases producer surplus. Producers receive a lower price for the same goods and services, which results in a smaller producer surplus.

The government no longer receives revenue from that tax. Therefore, government revenue decreases when a tariff is lifted. The market becomes more efficient as the price of the good or service decreases, this leads to a decrease in deadweight loss.

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The following information was taken from Slater Company's balance sheet: Fixed assets (net) $1,912,320 Long-term liabilities 460,800 Total liabilities 779,620 Total stockholders' equity 2,293,000 Round your answers to two decimal places. a. Determine the company's ratio of fixed assets to long-term liabilities. fill in the blank 1 b. Determine the company's ratio of liabilities to stockholders' equity. fill in the blank 2

Answers

Answer:

4.15

0.34

Explanation:

Bentonville Inc. bases its marketing and administrative expense budget on budgeted unit sales. The sales budget shows 4,900 units are planned to be sold in December. The variable marketing and administrative expense is $4.80 per unit. The budgeted fixed marketing and administrative expense is $93,100 per month, which includes depreciation of $8,420 per month. The remainder of the fixed marketing and administrative expense represents current cash flows. The cash disbursements for marketing and administrative expenses on the December marketing and administrative expense budget should be:

Answers

Answer:

$108,200

Explanation:

                          Marketing and Administrative Budget

Budgeted unit sales                                                                4,900

Variable marketing and administrative expense per unit  *$4.80  

Variable marketing and administrative expense                  $23,520

Fixed marketing and administrative expense                       $93,100

Total marketing and administrative expense                        $116,620

Less: Depreciation                                                                   $8,420  

Cash disbursements for marketing                                      $108,200

and administrative expenses

Consider a bond selling at par with modified duration of 12 years and convexity of 265. A 1% decrease in yleld would cause the price to Increase by 12%, according to the duration rule. What would be the percentage price change according to the duration- with-convexity rule?
a. 21.2%
b. 13.3%
c. 25.4%
d. 17.0%

Answers

Answer:

b. 13.3%

Explanation:

Calculation to determine What would be the percentage price change according to the duration- with-convexity rule

Using this formula formula

∆P/P = -D*∆y + (1/2) * Convexity * (∆y)^2

Let plug in the formula

∆P/P = -12 * -.01 + (1/2) * 265 * (.01)^2

∆P/P = .12 + .01325

∆P/P = .13325*100

∆P/P=13.3%

Therefore What would be the percentage price change according to the duration- with-convexity rule is 13.3%

g Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position

Answers

Answer:

Buy at a lower strike put option or sell at a higher call option

Explanation:

100 shares of apple stock bought at $300

premium of put option ( cost ) = $12

Put option = $300

What can be done to reduce the cost of protective put position

To reduce the cost we can either buy at a lower strike put option or sell at a higher call option

Buying at a lower strike put option price ( < $300 )

This way premium will be reduced but this will not hedge against small fall in price

Sell at a higher call option

This way the premium charged will be reduced but if the price rises above the entry price on expiration then the gains made above the price will be foregone .

TB MC Qu. 20-94 Masterson Companys budgeted... Masterson Company's budgeted production calls for 67,000 units in April and 63,000 units in May of a key raw material that costs $1.65 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 13,400 units. What is the budgeted materials purchases for April

Answers

Answer:

Total Purchases(in $) 109,230

Explanation:

The computation of the budgeted material purchase is shown below;

Budgeted Production (in units)  67,000

Add:-Desired Ending Inventory (20% of 63,000) (in units)     12,600

Total needed (in units)  79,600

Less:-Opening Inventory (in units) 13,400

Total Purchases (in units)  66,200

Price per unit(in $)     1.65

Total Purchases(in $) 109,230

Hence, the same would be relevant

In preparing its August 31, 2020 bank reconciliation, Vaughn Manufacturing has available the following information:

Balance per bank statement, 8/31/20 $25750
Deposit in transit, 8/31/20 3480
Return of customer's check for insufficient funds, 8/30/20 600
Outstanding checks, 8/31/20 2760
Bank service charges for August 100

At August 31, 2020, Vaughn's correct cash balance is :_________

a. $25030.
b. $25770.
c. $26470.
d. $25870.

Answers

Answer:

c. $26470

Explanation:

Calculation to determine what Vaughn's correct cash balance is

Using this formula.

Correct cash balance =Balance per bank statement + Deposit in transit - Outstanding checks

Let plug in the formula

Correct cash balance= $25750 + 3480 - 2760

Correct cash balance=$26470

Therefore At August 31, 2020, Vaughn's correct cash balance is:$26470

Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information:
Income Statement for Current Year Service revenue $ 52,500
Expenses Salaries $ 42,000
Depreciation 8,100
Amortization of copyrights 270
Other expenses 10,000 60,370
Net loss $ (7,870)
Partial Balance Sheet
Current Year Prior Year Accounts receivable $ 8,800 $ 15,200
Salaries payable 13,000 1,300
Other accrued liabilities 3,000 6,300
In addition, Rodriguez bought a small service machine for $5,900.
Required: 1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. (List loss amount and cash outflows as negative amounts.)

Answers

Answer: Please find answers in explanation column

Explanation:

                  Rodriguez Company

                Statement of Cash flow(Partial)

Cash flows from operating activities       Amount

Net Loss                                                       $(7,870)

Add: Depreciation                                       $ 8,100

Add: Increase in Salaries Payable             $11,700           ($13,000 − $1,300)

Add: Decrease in Accounts receivable      $6,400          ($15,200 − $8,800)  

Add: Amortization of Copy Rights               $270  

Less: Decrease in Other accrued               $(3,300)           ($3,000− $6,300)

liabilities

Net Cash provided by Operating              $15,300

Activities

a. How can increases in government spending crowd out investment spending? An increase in government spending increases the use of automatic stabilizers, which reduces private investment spending. causes firms to worry about inflation, which reduces private investment spending. increases the real interest rate, which reduces private investment spending. lowers the real interest rate, which reduces private investment spending. b. Is crowding out a major concern when actual output is below potential output? Why? Crowding out is a major concern, because the goal is always to increase investment spending. is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential. is a major concern, because the crowding out effect will outweigh the increase in government spending. is not a major concern, because the Fed will likely raise the real interest rate when actual output is above potential output.

Answers

Answer:

         a.  increases the real interest rate, which reduces private investment spending.

        b.  is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential.

Explanation:

Increase in government spending means that the government would probably have to borrow money from the credit market. Because the government is so large, it will borrow in large amounts which would force rates to rise. At these higher rates, the private sector might find it too expensive to borrow money and so would be crowed out such that they reduce their investment spending.

When the economy is facing an output that is lower than potential, the Fed will engage in monetary policy aimed at reducing interest rates to improve investment spending. This therefore negates the effect of crowing out which means that it would no longer be a major concern.

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