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14.02.2020 •
Business
Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net operating loss $(4,500) By automating certain operations, the company could reduce variable costs by $3 per unit. However, fixed costs would increase by $72,000 each month.Compute the new CM ratio and the new break-even point in both units and dollars.Assume that the company expects to sell 26,000 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are.
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Ответ:
Automated
Sales (19,500 units at $30 per unit) $585,000 $585,000
Variable expenses 409,500 351,000
Contribution margin 175,500 234,000
Fixed expenses 180,000 252,000
Net operating loss $(4,500) $( 18,000)
New Cm ratio= Contribution Margin/ Sales Revenue
= $ 234,000 $ 585,000 = 0.4
Break-even point in dollars= Fixed Costs/ 1- (variable Cost/ Sales)
= 252,000/ 1- (351,000/ 585,000)
= 252,000/ 1-0.6
= 252,000/0.4= $ 630,000
The resulting $ 630,000 is the break even point at which neither a loss nor a profit is incurred.This can be checked as follows.
Sales $ 630,000
Variable Costs ( 60 % $ 630,000) $ 378,000
Contribution Margin $ 252,000
Less Fixed Expense $ 252,000
Profit 0
Break even point in units = Fixed Costs/ Contribution Margin in units
= $ 252,000/ (30-18)
=$ 252,000/ $ 12= 21,000 units
Two Contribution format Income Statements:
Automated
Sales (26,000 units at $30 per unit) $780,000 $780,000
Variable expenses 546,000 468,000
Contribution margin 234,000 312,000
Fixed expenses 180,000 252,000
Net operating Profit $ 54,000 $ 60,000
Working:
Variable Costs per unit = $ 409500/19500= $ 21
After reduction variable costs = $ 21- $3= $ 18
Ответ:
C
Explanation:
Reduction of cost basis per share.
When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.