Answer:
Break-even point in units= 2,984 units
Explanation:
Giving the following information:
The one-time fixed costs will total 49982. The variable costs will be $8.50 per book. The publisher will sell the finished product to bookstores for 25.25 per book
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 49,982/ (25.25 - 8.5)
Break-even point in units= 2,984 units
XYZ assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a finance fee of 1% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables
Answer:
$0
Explanation:
Data provided in the question
Account receivable assigned = $6,000,000
For Collateral = $2 million
Percentage = 8%
Finance fee = 1%
Based on the above information, the amount of gain or loss that should be recorded at the time of transfer of receivable is zero as the account receivable is used for a collateral purpose ,not for sale purpose
Therefore, the $0 should be recorded
A bagel company bakes a specialty bagel that it sells by the dozen every day. These specialty bagels can only be baked early in the morning before the store opens for business. The company estimates that the daily demand (in dozens) for its specialty bagel is distributed as follows: Specialty bagels arc sold by the dozen only at a cost of $9.00 per dozen. The cost to make one bagel is $0.50. Leftover specialty bagels arc sold by the dozen the next day for a 50% discount. The optimal number of specialty bagels that should be baked tomorrow (in dozens) is:________ a) 5 dozen. b) 4 dozen. c) 3 dozen. d) 2 dozen.
Answer:
b) 4 dozen
Explanation:
The computation of the optimal number of specially bagels i.e expected value is shown below:
As we know that
Expected value = Demand × probability
= 1 dozens × 0.10 + 2 dozens × 0.15 + 3 dozens × 0.20 + 4 dozens × 0.25 + 5 dozens × 0.30
= 0.1 + 0.3 + 0.6 + 1 + 1.5
= 3.5 dozen or 4 dozen
Hence, the correct option is b.