Ivanhoe Corporation has fixed costs of $507,200. It has a unit selling price of $9.00, unit variable cost of $7.35, and a target net income of $1,552,000.

Required:
Compute the required sales in units to achieve its target net income.

Answers

Answer 1

Answer:

Break-even point in units= 1,248,000

Explanation:

Giving the following information:

Unitary contribution margin= 9 - 7.35= $1.65

Fixed costs= $507,200

Desired profit= $1,552,000

To calculate the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (507,200 + 1,552,000) / 1.65

Break-even point in units= 1,248,000


Related Questions

Crane Corp. had total variable costs of $281,400, total fixed costs of $130,350, and total revenues of $420,000. Compute the required sales in dollars to break even.

Answers

Answer:required sales to break even=$395,000

Explanation:

Break Even Sales = Fixed Expenses / Contribution Margin

  But

Fixed  Costs /Expenses  is given as  $130,350

And

Contribution Margin Ratio  is solved as  (Total Revenue - Variable Cost) / Total Revenue x 100  

= ($420,000-$281,400)/ $420,000 x 100

=0.33 x 100

= 33%

Break Even Sales = $130,350/33%

= $395,000

Assume that the risk-free rate is 6% and the market risk premium is 8%.

What is the expected return for the overall stock market? Round your answer to two decimal places.
___________ %

What is the required rate of return on a stock with a beta of 1.9? Round your answer to two decimal places.
___________ %

Answers

Answer:

r or expected rate of return - market = 0.14 or 14%

r or expected rate of return - stock = 0.2120 or 21.20%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate rpM is the market risk premium

Under CAPM, the assumption follows that the beta of the market is always equal to 1.

So, expected return on the stock market will be,

r or expected rate of return - market = 0.06 + 1 * 0.08

r or expected rate of return - market = 0.14 or 14%

The beta of the stock is given. We calculate the required rate of return on the stock to be,

r or expected rate of return - stock = 0.06 + 1.9 * 0.08

r or expected rate of return - stock = 0.2120 or 21.20%

In an E-Contract, what are the similarities and differences between an Online Offer and an Online Acceptance?

Answers

ANSWER:

the answer is pet your dogo

Explanation:

Disposable personal income: a. excludes transfer payments. b. includes personal income taxes. c. is income spent for personal items such as homes and cars. d. excludes personal income taxes

Answers

Answer:

d. excludes personal income taxes

Explanation:

Disposable personal income excludes personal income taxes.

A disposable income can be defined as an amount of money remaining after the deduction of income taxes, and social security fees.

principals of manegment ​

Answers

Answer:

The answer is "Option d".

Explanation:

The management team consists of the coordination of any resources in the preparation, organization, analysis, and administration of the project to reach specific goals.  

It is how something will be handled, treated intently, monitored, or managed by a company or group.  Managers work as planners, supervisors, and managers thru the four roles, administrators, which focus on making their staff, processes, projects, and companies more efficient and effective in all fields.

On January 1 a man deposit $5000 in a credit union that pays 8% interest, compounded annually. He wishes to withdraw all the money in five equal end-of-years sums, beginning December 31st of the first year. How much should he withdraw each year?

Answers

Answer:

he should withdraw $1,252.5 each year.

Explanation:

The computation is shown below:

Given that

Initial deposit (P) = $5,000

n = 5

i = 8%

Now the withdrawal amount is  

AW = P(A/P, i, n)

= $5,000 (A/P, 8%, 5)

= $5,000(0.2505)

= $1,252.5

Therefore, he should withdraw $1,252.5 each year.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

When each additional worker hired contributes less than the previous worker hired to total output, we can say there are (is):_______

a. falling average productivity
b. diminishing marginal utility
c. diminishing average returns
d. diminishing marginal returns

Answers

Answer:

d. diminishing marginal returns

Explanation:

The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant

Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired

So this represents the diminishing marginal returns

hence, the option d is correct

True or false: The main purpose of managerial accounting is to provide general-purpose financial statements

Answers

Answer:

False

Explanation:

managerial accounting is simply the sorting or gathering/preparing of accounting information that is to be used within a company. It help to ensure the organization's goals are met effectively and efficiently.

Functions of Management Accountant includes Planning(deciding on the long-term direction of the company e.g. making budget)

Which of these was the first government of the United States?

Group of answer choices

Constitution

Declaration of Independence

Articles of Confederation

Mayflower Compact

Answers

Answer:

Declaration of independence

Explanation:

I did that test yesterday lol

Answer:

3. Articles of Confederation

Explanation:

Hope this helps!

In the ____ and ____ stages of product life cycle, firms often set priorities on growth and/or market share

Answers

Answer:

In the introduction and early growth stages of the product life cycle, firms often set priorities on growth and/or market share

Explanation:

A 37-year-old client experienced a perinatal loss 3 days ago. Which client characteristic would be communicated to the health care provider?

Answers

Answer:

Denial of the death

Explanation:

A loss of a Child to a mother is not usually acceptable at first to the mother. A woman at 37 who is advance has slimmer chance of getting pregnant and the woman at 37, having a pregnancy and lossing the baby is not easy to deal with. Parental loss and bereavement is really had for a 37 year old mother who at first may not accept the death of the child but proper care will bring the mother back to full consciousness.

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current (second) year of ownership?

a. $16,806
b. $14,939
c. $16,163
d. $16,072

Answers

Answer:

b. $14,939

Explanation:

Property placed in service in 1st year:  

                                                Amount $

2nd quarter                              15,000

3rd quarter                                6,000

4th quarter                                40,000

Total furnishing at beginning of 2nd Year $61,000

Half Year depreciation rate in 2nd Year  as per Macrs table under "7 years life" assets, the applicable depreciation in the 2nd year is 24.49%

Thus, amount of depreciation expense is allowable in the current (second) year of ownership = $61,000 * 24.49% = $14938.90

Scott, the chief operating officer of Barcelona Restaurant Group, tells his managers that Barcelona's philosophy is to:

Answers

Answer:

the question is incomplete, so I looked for a similar one:

COO, Scott Lawton, discusses Barcelona’s philosophy on allowing restaurant managers to make their own decisions. They hire and train managers that they believe have the "creativity and brain power" to be successful.

Which type of role is Scott performing?

What type of management approach exists in Barcelona?

Scott is performing an interpersonal role since the question describes his actions regarding restaurant managers and how he allows them to basically operate as independent business units. Scott if the figurehead of Barcelona, but at the same time gives lower level managers a lot of freedom.

This type of management can be described as the humanistic perspective management since employees are empowered.

Suppose US$1 = €0.7809 in New York and US$1 = €0.7793 in Paris. How can foreign exchange traders profit from these exchange rates? What actions can they take that may result in the same dollar/euro exchange rate in both New York and Paris? Please limit your response to one or two reasonably-sized paragraphs.

Answers

Answer:

If a Dollar is worth $ 0.7809 Euros in New York, and $ 0.7793 Euros in Paris, the way in which foreign exchange traders could obtain an economic profit through this difference would be by buying Euros in Paris, and selling them again in New York. Thus, they would obtain $ 0.016 of profit for each Euro traded in the market, with which, for example, if $ 1,000,000 of Euros were traded, a total profit of $ 16,000 would be obtained. In turn, trading the same amount in both Paris and New York, traders would not make any profit, equating both exchange rates.

Kenji has had an illness and an accident during the year. His combined out-of-pocket expense for both incidents was $1,000. The insurance company will now start to pay some of his medical expenses. What does the $1,000 represent?

a. Participation (co-insurance)
b. Deductible
c. Coordination of benefits
d. Intemal limits

Answers

Answer:

b. Deductible

Explanation:

Since in the question it is mentioned that Kenji who had an illness and had an accident during the year also the combined out of pocket expenses is $1,000.

So this $1,000 represent the deductible

hence, the correct option is b.

And the other options are wrong

Therefore the same is to be considered

Riverbed Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building $228,800, and equipment $83,200. At what amounts should each of the three assets be recorded

Answers

Answer:

Land=$54,600, Building = $200,200, Equipment = $72,800

Explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = 62,400 + 228,800 + 83,200

Total Asset Fair Value = 374,400

Recorder Amount

Land = 62,400 / 374,400 * 327,600 = $54600

Building  = 228,800 / 374,400 * 327,600 = $200200

Equipment = 83,200 / 374,400 * 327,600 = $72,800

Gibson Valves produces cast bronze valves on an assembly​ line, currently producing 2000 valves per shift. If the production changes to 1600 valves per​ shift, labor productivity will change​ by:

Answers

Answer:

25%

Explanation:

Calculation for the change in labor productivity

Using this formula

Change in labor Productivity = (New Productivity - Old Productivity)/Old Productivity

Let plug in the formula

Change in labor Productivity= ($2,000-$1,600)/$1,600

Change in labor Productivity= $400/$1,600

Change in labor Productivity= 0.25*100

Change in labor Productivity=25%

Therefore labor productivity will change​ by: 25%

If a company’s net income increased while its net sales remained constant, the company's profit margin would:_____

a. Compare favorably to its competitors.
b. Decrease.
c. Increase.
d. Not be impacted.

Answers

Answer:

c. Increase.

Explanation:

If a company’s net income increased while its net sales remained constant, the company's profit margin would increase.

This is simply because the amount of money that is being generated from the sales of goods and services are increasing.

A company produces and sells 6,400 recliners each year. Each production run has a fixed cost of $400 and an additional cost of $35 per recliner. To store a recliner for a full year costs $8. What is the optimal number of recliners the company should make during each production run? Do not include units with your answer.

Answers

Answer:

800 Recliners

Explanation:

Calculation for the optimal number of recliners the company should make during each production run

Using this formula

Economic Order Quantity (EOQ) =√ [(2 D x S) / C]

Where,

Annual Demand (D) = 6,400 Recliners

Fixed Ordering Cost (S) = $400

Carrying cost per recliner (C) = $8

Let plug in the formula

Economic Order Quantity (EOQ)= √[(2 x 6,400 x $400) / $8]

Economic Order Quantity (EOQ)=√$5,120,000/$8

Economic Order Quantity (EOQ)=√$640,000

Economic Order Quantity (EOQ)= 800 Recliners

Therefore the optimal number of recliners the company should make during each production run will be 800 Recliners

Unemployment is often called a lagging or trailing indicator because unemployment tends to rise some time after the economy begins to slow down, and unemployment begins to fall again after the economy begins to rebound. Unemployment trails GDP because:

A) laws prevent firms from reducing employment during recessions and during expansions people are still collecting unemployment insurance.
B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.
C) when the economy is in a recession, firms do not want to pay unemployment insurance, and during expansions they do not want the added cost of new employees.
D) the labor force increases during recessions and shrinks during expansions.

Answers

Answer:

B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.

Explanation:

In the case when the output falls so the workers would not be laid off in a direct manner. In the first time the labor would be decreased so that the demand could be analyzed. The same would be happen in that case also where the growth picked up

Therefore in the given case, the option B is correct

And the other options are wrong

Nervous Norman holds 70% of his assets in cash, earning 0%, and 30% of his assets in an insured savings account, earning 2%. The expected return on his portfolio Group of answer choices is 1%. cannot be determined without knowing what the dollar value of his assets is. is 2%. is 0.6% is 0%.

Answers

Answer: 0.6%

Explanation:

The expected return is a weighted average of the returns of the assets invested in.

70% is invested in cash which earns 0%

30% is in a savings account earning 2%

Expected return = (70% * 0%) + (30% * 2%)

= 0% + 0.6%

= 0.6%

Write a sample greeting you would record on your professional cell phone to be heard by employers and recruiters if they reach your voice mail.

Answers

Answer:

This is (your name) with (say the company) I can not come to the phone right now but please leave a message and I will call you back.

Answer: Hello, you’ve reached (Your First and Last Name).

Sorry I wasn’t able to take your call, but please leave your name and a detailed message and I’ll get back to you.

Have a great day.”

There is a zero coupon bond that sells for $4,550.90 and has a par value of $10,000. If the bond has 18 years to maturity, what is the yield to maturity'? Assume semiannual compounding.
A. 4.47%
B. 4.27%
C. 4.31%
D. 4.24%
E. 4.42%

Answers

Answer:

E. 4.42%

Explanation:

Calculation for the yield to maturity

First step is to calculate the Current price using this formula

The Current price=Par value/(1+yield to maturity/2)^(2*Time period)

$4,550.90=$10,000/(1+yield to maturity/2)^(2*18)

(1+yield to maturity/2)^36=($10,000/$4,550.90)

1+yield to maturity/2=($10,000/$4,550.90)^(1/36)

Now let calculate the yield to maturity

Yield to maturity/2=1.0221092-1

Yield to maturity=0.0221092*2

Yield to maturity=0.0442*100

Yield to maturity=4.42%

Therefore the Yield to maturity will be 4.42%

The next dividend payment by ASAP, Inc., will be $2.00 per share. The dividends are anticipated to maintain a 4.00% growth rate, forever. If ASAP stock currently sells for $14.75 per share, what is the required return?

Answers

Answer:

r = 0.175593 or 17.5593% rounded off to 17.56%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is dividend expected for the next period /year g is the growth rate r is the required rate of return  

Plugging in the values for D1, P0 and g, we can calculate the value of r to be,

14.75 = 2 / (r - 0.04)

14.75 * (r - 0.04)  =  2

14.75r - 0.59  =  2

14.75r = 2 + 0.59

r = 2.59  /  14.75

r = 0.175593 or 17.5593% rounded off to 17.56%

You own a stock portfolio invested 40 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .93, 1.10, 1.10, and 1.28, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

the portfolio beta is 1.06

Explanation:

The computation of the portfolio beta is shown below:

The Beta of the Portfolio is

= Stock Q Weight × Beta of Stock Q + Stock R Weight  × Beta of Stock R + Stock S Weight × Beta of Stock S + Stock T Weight × Beta of Stock T

= 0.93 × 0.4 + 1.1 × 0.25 + 1.1 × 0.2 + 1.28 × 0.15

= 1.06

hence, the portfolio beta is 1.06

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. What was the effect of this fraud on worldcom's income statement?

Answers

Answer:

net income was too high, expenses were too low

Explanation:

From the question, we are told about how Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. In this case the effect of this fraud on worldcom's income statement is that net income was too high, expenses were too low. An income statement which can also be regarded as "profit and loss" account is a financial statement that gives the revenue as well as the expenses of a company at a particular period, so if the Executive capitalize costs that should have been expensed then it equates to the net income been too high while expenses were too low.

Widmer Company had gross wages of $301,000 during the week ended June 17. The amount of wages subject to social security tax was $270,900, while the amount of wages subject to federal and state unemployment taxes was $38,000. Tax rates are as follows:
Social security 6.0%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.8%

The total amount withheld from employee wages for federal taxes was $60,200.

If an amount box does not require an entry, leave it blank. If required, round answers to two decimal places.

a. Journalize the entry to record the payroll for the week of June 17.
June 7

b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
June 7

Answers

Answer:

Widmer Company

a. Journal Entry:

Debit Payroll Expense $301,000

Credit Payroll Payable $218,728.50

Credit Payroll Tax Payable $82,271.50

To record the payroll for Week June 17.

b. Journal Entry to record payroll tax expense

Debit Payroll Tax Payable $82,271.50

Credit Cash $82,271.50

To record the payroll tax expense incurred for Week June 17.

Explanation:

a) Data and Calculations:

Gross wages = $301,000

Period = Week ended June 17

Wages subject to social security tax = $270,900

Social security tax rate = 6%

Social security tax = 6% of $270,900 = $16,254

Medicare tax rate = 1.15%

Medicare tax = 1.15% of $301,000 = $3,461.50

State unemployment rate = 5.4%

Federal unemployment rate = 0.8%

Wages subject to federal and state unemployment taxes = $38,000

State unemployment tax = 5.4% of $38,000 = $2,052

Federal unemployment tax = 0.8% of $38,000 = $304

Federal tax withheld = $60,200

Gross wages =                                     $301,000

Social security tax =             $16,254

Medicare tax =                       $3,461.50

State unemployment tax =   $2,052

Federal unemployment tax =  $304

Federal tax withheld =       $60,200

Total tax and deductions =                  $82,271.50

Net pay =                                            $218,728.50

If
you are
using $50 to buy your groceries, which function of money is
this?

Answers

Answer:

Medium of Exchange

Explanation:

A medium of exchange is an instrument used as an intermediary to facilitate the exchange of goods and services. A good medium of exchange must give a fair valuation of the items being traded. Money is a widely accepted medium of exchange.

Almost all items in a market have a monetary value attached to them. A Buyer or seller would easily know the amount of money needed to trade an item. The $50 is being used as a medium of exchange for the purchase of groceries. The seller accepts the money if they agree with the buyer on the quantity of groceries worth $50.

The Fried Green Tomatoes Restaurant has increased its operating cycle from 97.4 days to 101.7 days while the cash cycle has decreased by 2.9 days. How have these changes affected the accounts payable period?

a. Decreased by 11 days
b. Decreased by 5 days
c. Decreased by 1 day
d. Increased by 5 day
e. Increased by 11 days

Answers

Answer:

Increased by 7.2 days

Explanation:

As in the question it is mentioned that the operating cycle is increased from 97.4 days to 101.7 days so the difference in days is

= 101.7 days - 97.4 days

= 4.3 days

And, the cash cycle is decreased by 2.9 days

So, the total number of days would be

= 4.3 days + 2.9 days

= 7.2 days

These have been the negative impacts

The options that are mentioned in wrong and the above is the righ answer

If there is a high supply for a product, then production would be _____.


decreased

increased

the same

none of the above

Answers

Answer:

the same i think is this correct

Answer:

increased

Explanation:

edg

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