Answer:
3,074 units sold or total revenue of $236,698 per year
Explanation:
cost of machine $540,000
depreciation expense per year = $540,000 / 5 = $108,000
contribution margin per unit sold = $77 - $29 = $48
we generally calculate the financial break even point of a business by using the following formula:
= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends
But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.
using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19
$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000
$30,828.19 = [(unit sales x $48) - $108,000] x 0.78
$39,523.32 = (unit sales x $48) - $108,000
$147,523.32 = unit sales x $48
unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold
The financial break-even point is approximately 5,104 units.
The financial break-even point can be calculated by determining the number of units that need to be sold in order to cover the fixed costs. First, we need to calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. In this case, it is $77 - $29 = $48. Next, we divide the fixed costs by the contribution margin per unit to find the break-even point in units. Using the formula: Break-even point (in units) = Fixed costs / Contribution margin per unit. Plugging in the numbers, we get: $245,000 / $48 = 5,104.17. Therefore, the financial break-even point is approximately 5,104 units.
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Answer: Using buffer stocks to ensure speedy supply.
Explanation:
Differentiation is a strategy that is used to differentiate a good or service from other products that are similar which are offered by competitors. It is the development of a good or service, that is unique and stands out for the customers, in terms of features, product design, quality, brand image, or customer service.
Modular design to differentiate a product, collating market research data and minimizing inventory are all product differentiation strategies.
Answer: C. Use buffer stocks to ensure speedy supply.
Explanation: All options except the use of buffer stocks to ensure speedy supply are included in the differentiation strategy decisions. A differentiation strategy is one of the ways a business distinguishes itself from competition and is defined as the approach in development of new products that a firm employs in order to offer unique products that customers will find superior to others in the market. It is important because it allows businesses not just to distinguish themselves from competition, but to also emphasize the unique aspects that make its product superior, accelerating visibility and perceived expertise, that results in better growth and profitability.
Answer:
Barney is not entitled to a loss deduction.
Explanation:
Barney is not qualified for a loss deduction. Barney cannot have any realization because the stock has not been sold or become worthless. If Barney's stock becomes worthless then generally he may deduct its tax basis in the stock as a worthless stock loss for the year in which the stock becomes worthless.
Answer:
The correct answer is $7.94.
Explanation:
According to the scenario, the computation of the given data are as follows:
Total value of shares = ( 320,000 × $40 ) + ( 420,000 × $45) + (520,000 × $10) + 720,000 × $15)
= $12,800,000 + $18,900,000 + $5,200,000 + $10,800,000
= $47,700,000
So we can calculate the net asset value by using following method:
Net asset value = (Total value - Expenses ) ÷ Shares Outstanding
By putting the value, we get
= ( $ 47,700,000 - $ 40,000) ÷ $6,000,000
= $7.94
Answer: A. Google Docs
Explanation:
Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.
b.A better divisional performance measure would be the rate of return on investment
c.A better divisional performance measure would be the residual income.
d.None of these choices would be included.
e.All of these choices (a, b & c) would be included.
Answer:
Option D
Explanation:
In simple words, method of performance division is considered to be effective when it depicts a true picture, not because it gives a sound position of the organisation as waned by the managers.
Thus, reticulation should not be done. Also, Divisional performance should be judged by some other aspects like time taken to perform the job or wastage done by them etc.
The two possible reasons for unemployment are:
Unemployment is when labour that is willing and able to get work cannot find a job. Unemployment can be increased during a recession when there are less jobs available. Also, if the wage rate is too low, it might discourage labour from working.
To learn more about unemployment, please check: brainly.com/question/10940465