PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. Required: 1. Compute contribution margin rate of company. 2. Compute break-even point of the company in dollars and units PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. Required: 1. Compute contribution margin rate of company. 2. Compute break-even point of the company in dollars and units
Expert Answer:
Answer rating: 100% (QA)
To compute the contribution margin rate of the company we need to determine the contribution margin ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Lawrence received a salary of $50 on September 1. He plans to repay this advance from his gross wages of $450 to be paid on September 15. What is his taxable income for the September 15 paycheck?
-
Scenario for parts (a) and (b) Company WX manufactures a number of finished products and two components. Three finished products (P1, P2, and P3) and two components (C1 and C2) are made using the...
-
The Meadows Company manufactures a number of products from the same raw material. Joint processing costs total $10,000 per month. Product Z could be sold at the cut-off point for $18,000 per month or...
-
Methanol, CH3OH, is prepared industrially from the gasphase catalytic balanced reaction that has been depicted here using molecular models. In a laboratory test, a reaction vessel was filled with...
-
Compare the functions f (x) = x5 and g(x) = 5x by graphing both functions in several viewing rectangles. Find all points of intersection of the graphs correct to one decimal place. Which function...
-
Bang! A student sits atop a platform a distance h above the ground. He throws a large firecracker horizontally with a speed v. However, a wind blowing parallel to the ground gives the firecracker a...
-
The following balance sheet and income statement data were taken from the financial records of The Dana Point Company: \ Required Prepare percentage change and common-sized balance sheets and income...
-
During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue. The corporations fiscal year is the calendar year. 2016 Jan. 1 Issued $300,000 of 10-year, 6...
-
Staton - Smith Software is a new start - up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $ 3 . 2 5 with a...
-
Your company is considering acquiring a private company (New Co., Inc.). The CFO has asked you to review the financial statements, look for key trends, and develop financial/operational questions to...
-
Instructions Note: This is individual assignment. Any attempt to copy from other will affect your marks. Part II: You will be assigned a country to study and compare with Saudi Arabia, which will be...
-
What is the relevance of FREDs for auditors?
-
What is aSORP?
-
(a) Explain how analytical review procedures can contribute to an audit. (b) Explain how the results of analytical review can influence the nature and extent of other audit work. (c) Give THREE...
-
What are the rules on accountants remuneration?
-
What kinds of access to assets and records are there?
-
On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the...
-
What will be the final value of DI after executing the following piece of code? Execute the instructions dependently one after another. CLD MOU CX,OFOH MOU AX.02874H MOU DI,01000H MOU ES, DI SUB...
-
What is the purpose of a balanced scorecard?
-
1. What are the advantages and disadvantages of using a fixed budget as outlined above? 2. What approaches can be taken to overcome the problems relating to fixed budgets? The British government has...
-
Distinguish between arbitrary and cause-and-effect allocations.
-
Which of the following is true? a. A price ceiling reduces the quantity exchanged in the market, but a price floor increases the quantity exchanged in the market. b. A price ceiling increases the...
-
Which of the following will most likely occur with a 20 percent increase in the minimum wage? a. higher unemployment rates for experienced and skilled workers b. higher unemployment rates for young...
-
A current surplus is due to a price floor. If the price floor is removed, a. price would increase, quantity demanded would increase, and quantity supplied would increase. b. price would increase,...
Study smarter with the SolutionInn App