A company has been making surfboards for many years. The monthly overhead is $48,200 and each surfboard costs $221 in materials and labor to make. If these items are sold for $261 (a) What is the profit in dollars if 216 surfboards are made and sold? (Enter value but omit dollar sign.) (b) How many surfboards must be sold to break even? Note: Coursepack page 83, EX 8.6
Solved
Show answers
More tips
- L Leisure and Entertainment Unlocking the Secrets of Fast and Effective Tectonic Learning...
- S Style and Beauty How to Choose the Perfect Hair Color?...
- C Computers and Internet Best iPad Games: Our Opinion...
- A Animals and plants Man s Best Friend: Which Dog Breed Is the Most Friendly?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
- S Style and Beauty How to braid friendship bracelets?...
Answers on questions: Business
- B Business 400 words each, The first paragraph answers the question entire question. The second paragraph is an example of the concept in use, or how it could be used, in your business environment...
- B Business Pepper Company acquired 60 percent of the common stock of Safton Corporation on December 31, 20X9. On the date of acquisition, Pepper held land with a book value of $200,000 and a...
- B Business Zen Inc. manufactures two types of products, the G.1 and the T.1 models. The manufacturing process consists of two principal departments: production and assembly. The production department...
- B Business Ford Motor Company has issued 8% convertible debentures, convertible at a 12.5:1 ratio. Currently the debenture is trading at 90. The stock is trading at $72. Which statement is TRUE?...
- B Business (a) Find the pure-strategy Nash equilibrium. Indicate the equilibrium payoffs. 1 (b) Can player 1 help himself by employing a simple unconditional strategic move? Which action will...
- B Business A batch of automobiles produced by the overseas manufacturing unit of a multinational automobile manufacturer was recalled due to defects in engine transmission. Instead of blaming...
- B Business Sweet Acacia Industries reported net income of $1.40 million in 2022. Depreciation for the year was $224,000, accounts receivable decreased $490,000, and accounts payable decreased...
- B Business Why doesn’t the fact that the ‘’Inflation solution is only a temporary solution to stop many developing countries from using it?...
- B Business Which of the following does not help you reduce risk? Multiple Choice Converting your money market account to a mutual fund account Contracting to sell your farm produce to the neighborhood...
- B Business Research the accounting profession and choose three possible career paths that interest you. Describe those careers and why they are of interest. Participate in follow-up discussion...
Ответ:
Profit- $(39560)
Break-even units=1,205 units
Explanation:
The profit in dollar would be determined as follows:
Profit = total contribution - Fixed costs
Total contribution = sales revenue - variable cost
Total contribution = ($261× 216) - (221× 216)
= $8,640
Profit = 8, 640 - 48200= $(39560)
Break-even units
The number of units to be sold to break even will be determined as follows:
Units to break-even = Fixed cost /(selling price - variable cost)
= 48,200/(261-221)
=1,205 units
Ответ:
a.There is a monthly loss of 49505 if 216 units are sold per month.
b. The break even in units is 1205 units.
Explanation:
a.
Profit is a function of Revenue less total costs. The revenue is calculated by multiplying the selling price by the quantity sold.
The revenue at 216 units is = 216 * 261 = 56376
The total cost at 216 units = 48200 + 221 * 261 = 105881
The profit/loss at 216 units = 56376 - 105881 = -49505
Thus, there is a loss of 49505 at production and sale of 216 units.
b.
The break even in units can be calculated by dividing the Foxed costs/overheads by the contribution margin per unit.
The contribution margin per unit = Selling price per unit - variable cost per unit
Break even in units = Fixed cost or Overheads / Contribution margin per unit
The contribution margin = 261 - 221 = 40 per unit
Break even in units = 48200 / 40 = 1205 units per month
Ответ:
Length of the report
Explanation:
A report is a document for communicating end result of an activity as demanded. However a good report must not only be rich in content but also be brief so as to make it readers friendly.
A consideration for the length of the report will have limited the extent of the jargon present in the report.