A company's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. The amount of sales required to realize an operating income of $200,000 is Group of answer choices

Answers

Answer 1
Answer:

Answer:

The answer is 14,167 units

Explanation:

Target sales is the amount of sales a company has projected itself to sell within a particular period.

Target sales(in units) =

(Fixed cost + target income) / contribution margin

Where contribution margin is sales in unit minus variable costs

($1,500,000 + $200,000) / $250 - $130

$1,700,000/$120

=14,167 units

Therefore, 14,167 units is the amount of sales that will need to be recorded to generate an operating income of $200,000


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Race One Motors is an Indonesian car manufacturer. At its largest manufacturing​ facility, in​ Jakarta, the company produces subcomponents at a rate of per​ day, and it uses these subcomponents at a rate of per year​ (of 250 working​ days). Holding costs are ​$ per item per​ year, and ordering costs are ​$ per order.Part 2
​a) What is the economic production​ quantity?

enter your response here units ​(round your response to two decimal​ places).

Answers

The economic production quantity (EPQ) is a formula used to determine the optimal production quantity that minimizes both holding and ordering costs. The economic production quantity for Race One Motors is 2043.08 units.

In the case of Race One Motors, we need to find the ideal production quantity that will help the company maintain its inventory while keeping its costs at a minimum.

Using the given information, we can calculate the EPQ as follows:
EPQ = sqrt[(2AO) / H]

Where,

A = annual usage rate of subcomponents

O = ordering cost per order

H = holding cost per item per year.

Plugging the values, we get:

EPQ = sqrt[(2 x 31250 x 200) / 6]
EPQ = sqrt[(12500000) / 6]
EPQ = 2043.08

Therefore, the economic production quantity for Race One Motors is 2043.08 units. This means that if the company produces this amount of subcomponents, it will be able to minimize its holding and ordering costs.

It is important for Race One Motors to determine the EPQ because it helps the company to optimize its production and inventory management. By producing the optimal quantity, the company can reduce its holding costs, which include storage, insurance, and handling costs. At the same time, by minimizing the number of orders placed, the company can also reduce its ordering costs, which include administrative and transportation expenses.

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Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He has a good network of potential investors and partners. He has no experience in management.A. Limited partner in a limited partnership.B. Neither a limited or general partner would be a good choice.C. General partner in a limited partnership.

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Answer: A. Limited partner in a limited partnership

Explanation: Manny would best serve the role of a limited partner in a limited partnership. A limited partnership as a type of partnership has at least one general partner who manages the business from day-to-day and at least one limited partner who invests money in exchange for shares in the partnership, has restricted rights in the business, and no management role in the business. That is to say that Manny's involvement in the partnership is limited to providing capital to the business.

Can someone plz help me really quick? I’m struggling. I can give brainliest points.

Answers

Pretty sure its the third one

Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2016, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date, $8 per share. Options cannot be exercised prior to January 1, 2018, and expire December 31, 2022. The fair value of the options, estimated by an appropriate option pricing model, is $2 per option. Because the plan does not qualify as an incentive plan, Walters will receive a tax deduction upon exercise of the options equal to the excess of the market price at exercise over the exercise price. The income tax rate is 40%.Required: 1. Determine the total compensation cost pertaining to the stock option plan. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

2. Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

1. Record compensation expense on December 31, 2016.

2. Record any tax effect related to compensation expense recorded in 2016.

3. Record compensation expense on December 31, 2017.

4. Record any tax effect related to compensation expense recorded in 2017.

5. Record the exercise of the options on March 20, 2021 when the market price is $12 per share.

6. Record any tax effect related to the exercise of the options.

Answers

Answer:

Explanation:

1. Determine the total compensation cost pertaining to the stock option plan:-

Estimated fair value per option $2

X Option granted                        40 million

Total compensation                 $ 80 million

Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile? A) They do not show how the firm's earnings are expected to change as the result of a particular decision.
B) They are not easily predicted from historical financial statements of a firm and its competitors.
C) These earnings are not actual cash flows.
D) They do not tell how the decision affects the firm's reported profits from an accounting perspective.

Answers

Answer and Explanation:

C) These earnings are not actual cash flows.  

Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. At the beginning of the year, customers owe Rebel $1,000. By the end of the year, customers owe $6,600. At the beginning of the year, Rebel owes salaries of $5,600. At the end of the year, Rebel owes salaries of $3,300. Determine cash-basis net income and accrual-basis net income for the year.

Answers

Answer:

The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.

Explanation:

The computation is shown below:

1. Net income under cash basis:

= Received cash from customers - paid cash for salaries

= $43,000 - $23,500

= $19,500

2. Net income under accrual basis:

= Cash received - salary paid

where,

Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year

= $6,600 + $43,000 - $1,000

= $48,600

And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year

= $5,600 + $23,500 - $3,300

= $25,800

Now put these values to the above formula  

So, the value would equal to

= $48,600 - $25,800

= $22,800

1. Cash basis in as accounting method that recognizes revenues and expenses only when the cash is received or paid out.

Net income under cash basis = Received cash from customers - Cash paid for salaries

Net income under cash basis = $43,000 - $23,500

Net income under cash basis = $19,500

2. Accrual basis is as accounting method where accounting transactions are recorded for revenue when earned and expenses when incurred.

Net income under  accrual basis = Cash received - Salary paid

Net income under  accrual basis = (Cash owed at the end of the year + Cash received - Cash owed at the beginning of the year) - (Salary owed at the end of the year + Salary paid - Salary owed at the beginning of the year)

Net income under  accrual basis = ($6,600 + $43,000 - $1,000) - ($5,600 + $23,500 - $3,300)

Net income under accrual basis = $48,600 - $25,80

Net income under accrual basis = $22,800

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