Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 55,000 units of each product. Sales and costs for each product follow.
Product T Product O
Sales $907,500 $907,500
Variable costs 726,000 90,750
__ __
Contribution margin 181,500 816,750
Fixed costs 36,500 671,750
_ _
Income before taxes 145,000 145,000
Income taxes (30% rate) 43,500 43,500
__ __
Net income $101,500 $101,500
Compute the contribution margin ratio and the break-even point in dollar sales for each product. (Enter contribution margin ratio as a percentage rounded to 2 decimals.
Answers
Answer:
a. Product T contribution margin ratio is 20.00%; and Product O contribution margin ratio is 90.00%.
b. Product T break-even point in dollar sales is $182,500.00; and Product O break-even point in dollar sales is $746,388.89.
Explanation:
a. Computation of contribution margin ratio
This can be computed using the following formula:
Contribution margin ratio = (Contribution margin / Sales) * 100 ................. (1)
Using equation (1), we therefore, we have:
Product T contribution margin ratio = ($181,500 / $907,500) * 100 = 20.00%
Product O contribution margin ratio = ($816,750 / $907,500) * 100 = 90.00%
b. Computation of the break-even point in dollar sales
This can be computed using the following formula:
Break-even point in dollar sales = Fixed cost / Contribution margin ratio ............ (2)
Using equation (2), we therefore, we have:
Product T break-even point in dollar sales = $36,500 / 20.00% = $182,500.00
Product O break-even point in dollar sales = $671,750 / 90.00% = $746,388.89
Related Questions
EXERCE1 Diffrentiate the legelities of private law and public law.
Answers
The main difference between the two is that private law deals with the relationships between individuals, while public law deals with the relationship between individuals and the state.
Private law covers matters such as contracts, property rights, and torts. It provides a framework for individuals to conduct their personal and business affairs, ensuring that everyone is held accountable for their actions. Private law is enforced through the civil courts, where individuals can seek redress for any wrongs that have been committed against them.
Public law, on the other hand, deals with matters that affect society as a whole. It includes constitutional law, administrative law, and criminal law.
Public law sets out the rules and regulations that govern the relationship between individuals and the state, as well as the relationship between different branches of government. It is enforced through the criminal justice system, where individuals can be prosecuted for breaking the law.
In summary, the main difference between private law and public law is that private law governs the relationship between individuals, while public law governs the relationship between individuals and the state. Both are essential for maintaining order and ensuring that everyone is held accountable for their actions.
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TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1.45 million and there are 130,000 shares outstanding. a. If the benchmark price-sales ratio is 3.9, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark price-sales ratio is 3.2, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal
Answers
Answer:
a. $43.50
b. $35.69
Explanation:
The computation o the stock price in the following cases is as follows:
Sales per share is
= $1.45 million ÷ 130,000 shares
= $11.15
The Price-Sales ratio is
= Stock price ÷ Sales per share
a.
Stock price
= $11.15 × 3.9
= $43.50
And,
b.Stock price is
= $11.15 × 3.2
= $35.69
The same is to be considered
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000 Selling and administrative expenses, $119,000 Sales returns and allowances, $39,000 Gross profit, $499,000 Accounts receivable, $195,000 Sales discounts, $23,000 Allowance for doubtful accounts credit balance, $2,100 Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
Answers
If Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280
First step is to determine the estimated bad debt expense
Bad debts expense=($459,000×2%)
Bad debt expense=$9,180
Now let determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Balance in allowance for doubtful accounts=$9,180+$2,100
Balance in allowance for doubtful accounts=$11,280
Inconclusion if Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280
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Which examples demonstrate common education and qualifications for Counseling and Mental Health Services careers? Check all that apply.
1. Soo uses leadership skills to guide a group of people in religious worship.
2. Jacqueline stays calm even when counseling patients who are angry or upset.
3. Brent uses math skills to help people fill out financial paperwork.
4. Nakisha provides therapy to families and has a master’s degree in Psychology.
5. Tao pays close attention to what patients say and how they behave during counseling sessions.
6. Adam lifts and carries young children while playing with them outdoors.
Answers
Answer:
Jacqueline, Nakisha, Tao or B, D, E
Explanation:
got it right
Answer:
B. Jacqueline stays calm even when counseling patients who are angry or upset.
D. Nakisha provides therapy to families and has a master’s degree in Psychology.
E. Tao pays close attention to what patients say and how they behave during counseling sessions.
Explanation:
edge 2021 :)
stay safe and good luck <3
2. What are the ways of forecasting cost of sales?
a. cost of materials
b. cost of labor
c. cost of overhead
d. all of the choices
Answers
Answer:
d. all of the choices
Explanation:
Cost of Goods sold = Cost of material purchased + Conversion cost
And
Conversion cost hereby includes Direct labor cost and other production overheads directly attributable to the Goods sold.
So, The correct option is - d. all of the choices
Small businesses do not operate in the manufacturing and mining sectors of the economy.
True
False
Answers
Suppose that 17,000 is deposited for seven years awt 3% APR calculate the nearest interest earned if interest is compounded monthly round your answer to the nearest cent
Answers
The interest earned if 17,000 is deposited for 7 years with a 3% APR compounded monthly is $3,967,03.
What is the interest earned?If the account the money is deposited is compounded monthly, it means that both the amount that was deposited and the interest that has already accrued increases in value once a month over the seven years investment period.
The interest earned is the difference between the amount deposited and the future value of the money in the account.
Interest earned = future value - amount deposited.
The formula that can be used to determine the future value of the amount deposited is:
FV = P(1 + r)^(m x t)
Where:
FV = future value P = amount deposited r = interest rate = APR / number of compounding = 3% / 12 = 0.25%m = number of compounding = 12 t = number of years = 7FV = 17,000 x (1 + 0.0025)^(12 x 7)
FV = 17,000 x (1.0025)^84 = $20,967.03
Interest earned = $20,967.03 17,000 = $3,967,03
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the management of sweet scent believe that the more the company spends on advertising the more profitable the product will be. do you think they are right? justify your answer
Answers
It is possible that increasing advertising spending can lead to increased profitability for a company, but it is not necessarily a guaranteed outcome. There are many factors that can influence the effectiveness of advertising, and it is important for a company to carefully consider and analyze these factors before making decisions about advertising spending.
One important factor to consider is the target audience for the product. If the target audience is not aware of the product or is not interested in the product, then increasing advertising spending may not have a significant impact on profitability.
It is also important to consider the overall market and competitive environment in which the product is being sold. If the market is saturated with similar products, or if there are strong competitors offering similar products, then it may be more difficult for a company to increase profitability through advertising alone.
In these situations, it may be necessary for a company to differentiate its product through other means, such as offering unique features or benefits, or by targeting a specific niche within the market.
Overall, while advertising can be an important factor in the success of a product, it is not the only factor, and it is important for a company to carefully consider the full range of factors that can influence profitability when making decisions about advertising spending.
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If Emmett wants to pay off his student loan by making monthly payments
for 10 years, what type of repayment plan is best for him?
Standard repayment plan
O Extended repayment plan
O Income-driven repayment plan
O Graduated repayment plan
-Submit
Answers
Answer:
income driven
Explanation:
if he wants to make monthly payments, income driven is the best option because he would get paid monthly for what ever job, and then pay a percentage of that towards his student loan
rene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war. What would the Nash equilibrium be in this sequential game?
Answers
Answer:
Enter, accommodate
Explanation:
Nash equilibrium is a concept of game theory that stated that the optimal outcome for an entity is that they have no incentive to deviate from their original strategy after considering their opponent's choice.
It is a logical and mathematical way by which an entity determines the best outcome for themselves.
In this scenario the best option is to Enter and accommodate.
For Irene if they enter and accommodate the most optimal outcome is that they will get $5 million in profits. If they fight they will lose $5 million. They will enter because they know Mattie will lose $5 million is they fight.
For Mattie if they fight Irene they will lose $5million which is worse that sharing their profit.
So the best option after considering beach other's strategy is to accommodate and share the profits
The ________ method of setting an advertising budget typically overlooks how promotion affects sales.
Answers
Based on business management, the affordable method of setting an advertising budget typically overlooks how promotion affects sales.
What is the Affordable method in the Advertising budget?The affordable method in the advertising budget is the cheap means of making an advertisement.
However, when making cheap or affordable advertisements, most people tend to overlook the effects of promotion efforts on sales.
Hence, in this case, it is concluded that the correct answer is "Affordable method."
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Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( \(\frac{p-c}{p-v}\) )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200\(\sqrt{n}\) = 400
Connect information which relates.
Inside-out perspective Choose..
competitive intelligence
the organisation's goals and values
the resources and capabilities to achieve competitive advantage
the industry environment
Answers
Competitive intelligence bridges the gap between the organization's goals and values, the industry environment, and the resources and capabilities necessary to gain a competitive edge. The correct option is a.
Competitive intelligence plays a crucial role in connecting the organization's goals and values with the industry environment and the resources and capabilities required to achieve competitive advantage. Competitive intelligence involves gathering and analyzing information about competitors, market trends, and customer preferences to gain insights and make informed business decisions.
By understanding the industry environment through competitive intelligence, organizations can identify opportunities and potential threats. This knowledge helps align the organization's goals and values with the external factors impacting its success. For example, if the industry is shifting towards sustainable practices, an organization that values environmental responsibility can leverage this trend to enhance its competitive position.
Furthermore, competitive intelligence helps identify the resources and capabilities needed to achieve competitive advantage. It provides insights into the strengths and weaknesses of competitors, allowing organizations to benchmark their own capabilities and identify areas for improvement. This knowledge can guide strategic planning and resource allocation, ensuring that the organization aligns its resources with its competitive goals. The correct option is a.
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Which is a possible benefit of having a good credit history?
O getting a high interest rate on a credit card offer
O obtaining a low interest rate on a loan
obtaining a savings account
O having a paycheck garnished
Mark this and return
Save and Exit
Answers
Answer:
B. obtaining a low interest rate on a loan
Explanation:
Answer:
b
Explanation:
got it right on test
If the French bank Société Générale reported its 2019 net income was 23,561 million euros and its operating expenses totaled 16,016
million euros, what was its gross profit? (Enter your answer in millions of euros.)
Gross Profit
million euros
Answers
Answer:
39,577 million euros
Explanation:
Calculation to determine the what was its gross profit
Using this formula
Gross profit=Net income+Operating expenses
Let plug in the formula
Gross profit=23,561 million +16,016 million
Gross profit=39,577 million euros
Therefore gross profit will be 39,577 million euros
When making a choice using the blank a household will choose the combination of labor, leisure, and income that provides the most utility
Answers
Answer: hiii lol
Explanation:
opportunities and threat in safaricom
Answers
Answer:
what do you mean
Explanation:
Abby consumes only apples.
Answers
Answer: she probably loses roughly 3 to 5 lbs in a week doing this. That is if you keep the apple intake low and don't over eat on apples. I would say keep intake to under 10 apples.
Explanation:
I don't know how this is a questions but here you go anyways...... 0 w 0
Exercise 10-10 (Algo) Keep or replace LO P5 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine AMachine B Purchase price$ 118,000$ 131,000 Variable manufacturing costs per year21,00014,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine
Answers
a. The income increase or decrease from replacing the old machine with Machine A is $69,000.
b. The income increase or decrease from replacing the old machine with Machine B is $104,000.
c. Lopez company should choose "Alternative B" Machine.
a. Alternative A
Increase or decrease in net income - Lopez Company
Cost to buy new machine -$118,000
Cash received to trade in old machine $57,000
Reduction in variable manufacturing cost $130,000
[($47,000- $21,000)×5]
Total change in net income $69,000
b. Alternative B
Increase or decrease in net income - Lopez Company
Cost to buy new machine -$118,000
Cash received to trade in old machine $57,000
Reduction in variable manufacturing cost $165,000
[($47,000- $14,000)×5]
Total change in net income $104,000
c. Lopez company should choose "Alternative B" Machine.
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Which is the primary characteristic of all physical and digital sales channels?
A: Market dominance
B: Branding
C: Closing sales
Answers
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. What is your opportunity cost of going to work on Saturday
Answers
Answer:
the opportunity cost of going to work on saturday is $32
Explanation:
The opportunity cost of going to work on saturday is as follows:
= Income earned on saturday - psychic cost
= 4 hours × $11 - ($2 × 4 hours)
= $44 - $8
= $32
hence, the opportunity cost of going to work on saturday is $32
Which is the most important consideration when deciding to purchase or lease a vehicle?
all current monthly expenditures
the amount of cash saved
the cost of gas and insurance
all monthly car payments
Answers
The most important consideration when deciding to purchase or lease a vehicle is to cosider all current monthly exoenditures.
What is lease?
Lease refers to the rent out the property or to take someone's others property on rent. It is an agreement done between the lessor and lessee. Lessor is the owner of the property whereas lessee is the user of that property.
For example the apartment given on rent to the tenant by the owner. Here the apartment is given on Lease.
Thus the first option is correct, all current monthly expenditures is considered at the time of purchase or lease of a vehicle.
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Answer: option a is the best chocie
Explanation:
How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.
Answers
Answer:
In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.
How can the acquisition of Heardle help Spotify?
Does the decision adjust the time value of money and risk appropriately?
How would Spotify value Heardle for an acquisition? Does the decision provide information on whether it creates value for the firm?
How will listening to the full song after playing Heardle help Spotify?
In your opinion, is the acquisition a good decision? Why or Why not?
Answers
Yes, the choice properly adjusts the temporal value of money and risk.
A reasonable acquisition cost for Spotify from Heardle would be $9 billion.
The decision does indeed reveal whether it adds value to the company.
After playing Heardle, Spotify benefits from listening to the entire song.
It was wise to make the purchase. One of the biggest software firms in the world, Microsoft has a lot of resources at its disposal to offer technological web solutions.
When making purchases and signing contracts for sums under $10,000, state agencies are permitted to use the fair and reasonable acquisition method. The F&R acquisition method does not demand an NCB.
It is necessary to examine the pricing and establish whether it is fair and reasonable when using this reasonable acquisition method. To do this, choose one of the methods listed in the section below on how to determine fair and reasonable acquisition. Buyers must base their comparisons on identical circumstances or those with minute variances that have no bearing on pricing when determining fair and acceptable pricing using price comparisons, catalog/market prices, and/or historical pricing.
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Yes, the choice properly adjusts the temporal value of money and risk.
A reasonable acquisition cost for Spotify from Heardle would be $9 billion.
The decision does indeed reveal whether it adds value to the company.
After playing Heardle, Spotify benefits from listening to the entire song.
It was wise to make the purchase. One of the biggest software firms in the world, Microsoft has a lot of resources at its disposal to offer technological web solutions.
When making purchases and signing contracts for sums under $10,000, state agencies are permitted to use the fair and reasonable acquisition method. The F&R acquisition method does not demand an NCB.
It is necessary to examine the pricing and establish whether it is fair and reasonable when using this reasonable acquisition method. To do this, choose one of the methods listed in the section below on how to determine fair and reasonable acquisition. Buyers must base their comparisons on identical circumstances or those with minute variances that have no bearing on pricing when determining fair and acceptable pricing using price comparisons, catalog/market prices, and/or historical pricing.
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2. The demographics of your target market are likely to
over the course of
years
Answers
The demographics of your target market are likely to change
over the course of years.
What is demographics?Marketing demographics are variables like as age, geographic region, education level, employment, income, and so on that are used to categorize and segment a market. Marketing demographics make use of readily available information.
The statistical study of human populations is known as demography. Demographers evaluate population number, mobility, and structure using census data, surveys, and statistical models.
Demographic traits are easily discernible. Age, gender, family situation, education level, income, occupation, and race are just a few examples.
Hence, these traits change over time.
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whats the meaning of economics
Answers
Answer:
Economics is the study of how society uses its limited resources. Economics is a social science that deals with the production, distribution, and consumption of goods and services. It focuses heavily on the four factors of production, which are land, labor, capital, and enterprise.
Explanation:
Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. ... The building blocks of economics are the studies of labor and trade.
Economics is defined as a science that deals with the making, distributing, selling and purchasing of goods and services. An example of economics is the study of the stock market.
t 3 Lab Learning Activity
K
Marcus Richardson
HW Score: 0%, 0 of 4 points
O Points: 0 of 1
11/03/22 7:32 PM
Question 1, P4-4 (similar to)
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,505,600 in current assets and $864,000 in current liabilities. The company's managers want to
increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.1
Answers
$6,28,363 the firm increase its inventory without its current ratio falling below 2.1
Current ratio = Current asset / current liability
Increasing inventory would increase the current asset.
We assume the additional inventory = L
So new current asset = L + $2,505,600
New current liability = L + $864,000
So, L + $2,505,600÷ L + $864,000 = 2.1
By solving L we get, L= $6,28,363
In other words, assets are items that provide a financial benefit to a company, such as inventory, buildings, equipment, and cash. They aid a company's ability to manufacture goods or provide services both now and in the future. A company's liabilities are its obligations—either money owed or services not yet performed.
Liabilities are the debts owed by a company to third-party creditors. Accounts payable may include notes payable and bank debt. Businesses take on debt in order to expand faster. A company's stability is determined by the balance of its debts and assets
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Plot the data in the table on the graph below. Remember, price is on the vertical axis and quantity is on the horizontal axis. PLEASE HELP
Answers
Explanation:
Plot the data in the table on the graph below. Remember, price is on the vertical axis and quantity is on the horizontal axis.
Quantity is on the horizontal axis so the data in the price column are X values
Price is on the vertical axis so the data in the price column are Y values
Quantity is in thousands so your points are:
(1000 , 10)
(2500 , 9)
(4000 , 8)
(5500 , 7)
(7000 , 6)
(8500 , 5)
(10000 , 4)
(11500 , 3)
(13000 , 2)
(14600 , 1)
(16000 , 0)
[NOTE: a photo of the graph grid has not been provided in the photo so scaling may not be exact]
Please upload a photo of the grid you are given for a graph to size.
In an unrelated acquisition, if five firms are interested in acquiring a firm and each of the bidding firms had a current market value of $30,000 while the current market value of the target firm is $20,000, this acquisition is likely to generate economic profits of ________ for the acquiring firm.
Answers
Answer:
It is not possible to determine the economic profits that the acquiring firm will generate from the acquisition based on the information provided.
The economic profits of an acquisition depend on various factors such as the price paid for the target firm, the synergies and efficiencies that can be realized by combining the two firms, and the potential growth and profitability of the target firm in the future.
In this scenario, it is only stated that five firms are interested in acquiring a firm with a current market value of $20,000, and each bidding firm has a current market value of $30,000. This information alone does not provide enough detail to calculate the expected economic profits for the acquiring firm.
Therefore, additional information such as the final acquisition price and other factors that could impact the acquisition's profitability would be needed to determine the economic profits generated by the acquisition.
Explanation:
which is the best definition of the purpose of a business?
Answers
Answer:
The purpose of a business is to offer value (through products and/or services) to customers, who pay for the value with cash or equivalents.
It could also mean that people who create businesses want to sell their products to make money.