Reference no: EM131105876
Accounting calculations
Dillon, Jones, and Kline, Ltd. is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow.
Model A:
Variable costs, $8.00 per unit
Annual fixed costs, $1,971,200
Model B:
Variable costs, $6.40 per unit
Annual fixed costs, $2,227,200
The selling price is $32 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.)
1. How many units must the company sell to break even if Model A is selected? (Do not round intermediate calculations.)
2- Calculate the net income of the two systems if sales and production are expected to average 184,000 units per year.
3. Assume Model B requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $900,000 and will be depreciated over a five-year life by the straight-line method. How many units must the company sell to earn $1,912,800 of income if Model B is selected? As in requirement (2), sales and production are expected to average 184,000 units per year.
4. Ignoring the information presented in part (3), at what volume level will the annual total cost of each system be equal?
|
Done in drinking a full glass of lemonade
: How much work is done in drinking a full glass of lemonade (density equal to that of water) if the glass is cylindrical with a radius of 0.050 m and height of 0.100 m, and the top of the straw is 0.050 m above the top of the glass?
|
|
Describe the specific risks benefits and internal controls
: Describe the different kinds of fraud andthe Fraud Triangle, an auditor's responsibility to identify and assess fraud. Describe the specific risks, benefits, and internal controls associated with IT functions.
|
|
Pumping the water out of the top of a cylindrical tank
: Find the work done in pumping the water out of the top of a cylindrical tank 3.00 ft in radius and 10.0 ft high, given that the tank is initially full and water weighs 62.4 Ib/ft3
|
|
Amount of rainfall
: A farmer may choose to plant one of the following crops. The profit of the crops depends on the amount of rainfall according to the following:
|
|
How many units must the company sell to break even
: How many units must the company sell to break even if Model A is selected? Calculate the net income of the two systems if sales and production are expected to average 184,000 units per year.
|
|
Center of earth and falls to the surface of earth
: A meteorite is 75,000 km from the center of Earth and falls to the surface of Earth. From Newton's law of gravity (see page 500), the force of gravity varies inversely as the square of the distance between the meteorite and the center of Earth.
|
|
Why is mobile computing so important to these three firms
: What difference would it make to a business or to an individual consumer if apple, google, or facebook dominated the internet experience? Explain your answer.
|
|
Find the buoyant force acting on the balloon
: A spherical weather balloon is filled with hydrogen until its radius is 2.40 m. Its total mass including the instruments it carries is 23.0 kg. Find the buoyant force acting on the balloon, assuming the density of air is 1.29 kg/m3
|
|
What was the market price of the stock per share
: When the firm issued its common stock, what was the market price of the stock per share?
|