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vagabundo [1.1K]
1 year ago
15

New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable

cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Business
1 answer:
SOVA2 [1]1 year ago
0 0

Answer:

  • What is the sales revenue under the worst-case scenario?

$ 125,032

Explanation:

Initial Escenario

TOTAL     Income Statement Unit   Quantity

$ 1,035,200 Total Net Sales       $ 647  1.600  

-$ 352,000 Variable Cost          $ 220  

-$ 64,000 Depreciation Expenses  

$ 619,200 Contributing Margin  

-$ 438,000 Anual Fixed Costs  

$ 181,200 Segment Margin  

Worst Case Escenario

Quantity fall 3% from 1,600 to 1,552

Price Fall 2% from $647 to $634

Variable Cost Increase 2% from $220 to $224

Anual Fixed Cost Increase 2% from $438,000 to $446,760

Depreciation Expenses maintained at the same level.

TOTAL Income Statement Unit Quantity

$ 984,061 Total Net Sales $ 634  1.552  

-$ 348,269 Variable Cost         $ 224  

-$ 64,000 Depreciation Expenses  

$ 571,792 Contributing Margin  

-$ 446,760 Anual Fixed Costs  

$ 125,032 Segment Margin  

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Two of the three primary account classifications within shareholders' equity are:
Sedbober [7]

Answer:

C. Paid-in capital and retained earnings.

Explanation:

The primary account classifications are the paid-in capital and retained earning.

Paid-in capital includes the par cost of shares and the premium paid on it.

Retained earning are the accumulated earning from the operating activities of the firm.

Preferred stock is not one of the main accounts as this can be interpreted as a liability in contrast to being the part of shareholders equity.

Option B on the other hand skips the premium or additional paid-in capital.

Hope that helps.

3 0
1 year ago
A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $500
olchik [2.2K]

Answer:

the cash paid as on June 24 is $9,424

Explanation:

The computation of the cash paid as on June 24 is as follows:

= Merchandise cost + Freight charge - Purchase returns - Discount Eligible at 3%

= $10,000 + $500 - $800 - [($10,000 - $800) × 0.03]

= $10,000 + $500 - $800 - $276

= $9,424

Hence, the cash paid as on June 24 is $9,424

3 0
1 year ago
The Bronsons sold their house on June 30, 2019, under an agreement in which the real estate taxes were not prorated between the
Gnoma [55]

You've asked an incomplete question. Here's the full question:

During 2014, Jack and Mary Bronson paid the following taxes:

Taxes on residence (for period January 1 to September 30, 2014) $2,700

State motor vehicle tax on value of the car 360

The Bronsons sold their house on June 30, 2014, under an agreement in which the real estate taxes were not prorated between the buyer and sellers. What amount should the Bronsons deduct as taxes in calculating itemized deductions for 2014?

A $3,060

B $2,160

C $1,800

D $2,700

Answer:

B. $2,160

<u>Explanation:</u>

Note that for the estate taxes not to be prorated between the buyer and sellers implies that they were not allocated.

Under US tax law a deduction is allowed for state and local personal property taxes.

Based on facts, The Bronsons  owned their property for 6 months of the 9-month period the taxes covered.

The Bronsons would pay  $1,800 [$2,700 × (6 months ÷ 9 months)] for the residence tax. Plus the $360 tax on the motor vehicle tax.

Making a total of $2,160 ($1800 + $360) as taxes in calculating their itemized deductions.

5 0
1 year ago
You need a new car and the dealer has offered you a price of $ 20 comma 000​, with the following payment​ options: (a) pay cash
STALIN [3.7K]

Answer:

(b) pay a $ 5 comma 000 down payment and finance the rest with a 0 % APR loan over 30 months.

Explanation:

In this case this is the best option to keep the lowest interests in your wallet, having to pay the whole thing for $18,000 that would start to generate interests in the credit card as for the day one, oaying just $5,000 and having the opportunity to finance the rest is the one that would let you generate the less interests in your credit card.

3 0
1 year ago
Depreciation: Multiple Choice
Whitepunk [10]

Answer:

4. Estimates the decrease in the value of capital goods due to wear and tear over the year.

Explanation:

In accounting terms and in the business world, depreciation is defined as the systematic loss or reduction in value of a fixed asset or capital goods over time due to wear and tear. It is used in estimating the useful life or life expectancy of the asset. Examples of those fixed assets include, buildings, furniture, tractors, etc.

8 0
1 year ago
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