a department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. for the month of january, there were no units in the beginning work in process inventory; 89,300 units were started into production in january; and there were 19,400 units that were 45% complete in the ending work in process inventory at the end of january. what were the equivalent units of production for conversion costs for the month of january?

Answers

Answer 1

If there were no units in the beginning work in process inventory; 89,300 units were started into production in january; The equivalent units of production for conversion costs for the month of january is:  78630.

Equivalent units

Using this formula to determine the equivalent units for conversion costs

Equivalent units = [(Ending WIP units x percentage  complete) + ((Units started into production - Ending WIP units) x percentage complete)

Let plug in the formula

Equivalent units = (19,400 units x 45%) + ((89300 - 19400) x 100%)

Equivalent units = 8,730 + 69,900

Equivalent units = 78,630

Therefore we can conclude that  the company equivalent units is 78,630 units.

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Related Questions

Marketing copy for a teeth-whitening product is selling more than whiter teeth, it's also selling the idea of what?
A. Wonder
B. Braces
C. Confidence
D. Chemicals

Answers

Marketing copy for a teeth-whitening product is selling more than whiter teeth, it's also selling the idea of confidence. It also enhances the self belief.

Marketing concepts of business management are build in such a way that is based on building confidence between the customers and the business development managers. Marketing always help to increase sales and profit.

Selling the only idea does not make sense you should be able to convince the product selling to customer by making wonders and wise use of skills taught in marketing arena.

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Describe how basic business concepts are important to marketing?

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The advantage of marketing for your business is that it engages customers and influences their decision to buy your products or services.

What fundamental ideas underlie business?

A business concept is essentially a condensed explanation of the idea that drives a company's existence. It outlines the main consumer issues it wants to address, explains how the concept relates to a market, and offers clear guidance when developing a business plan.

What role does the business concept play?

It not only establishes the foundation for the subsequent business plan, but also develops your idea, describes the customer issue it seeks to address, and examines how the idea will fit into the larger market. It's a bite-sized overview that you can distribute to potential partners, lenders, and/or investors.

What role does the marketing notion play in business?

The benefit of marketing for your company is that it engages consumers and helps them decide whether to purchase your goods or services. A marketing strategy, which is a component of your business plan, also aids in establishing and sustaining demand, relevance, reputation, competition, etc.

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united research associates (ura) had received a contract to produce two units of a new cruise missile guidance control. the first unit took 5,000 hours to complete and cost $40,000 in materials and equipment usage. the second took 4,750 hours and cost $34,000 in materials and equipment usage. labor cost is charged at $25 per hour. the prime contractor has now approached ura and asked to submit a bid for the cost of producing another 20 guidance controls.

Answers

Learning rate for labor hours = Time for 2nd unit / Time for 1st unit = L1 = 4750/5000 = 0.95 ( or 95 %) Learning rate for material and equipment usage = Material and equipment cost for 2nd item / Material and equipment cost for 1st item = 34000/400.

How is learning rate determined?

The formula Y = ax is used to determine the learning curve and takes the quantity of attempts into account. The cost/time decreases at a steady rate as the number of attempts is doubled.

What does a learning curve of 90% indicate?

For instance, a 90% learning curve indicates that the average production time per unit increases by 10% for every doubling of the total quantity. The percentage indicates the portion of the task's time that will be carried over to subsequent iterations when production is doubled.

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Marcel duchamp was a famous artist prior to his death, and was known for his dada artwork, including works such as soft toilet. All of his original sculptures and paintings go on sale. Supply is.

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All of his original sculptures and paintings go on sale supply is Perfectly Inelastic. A product is referred to as "perfectly" inelastic when it has an elasticity of zero.

This indicates that regardless of how the product's price changes, neither the supply nor the demand will alter at all. It's common to refer to inelastic items as necessity. Because individuals cannot or will not live without it, a change in price has no effect on either consumer demand or the overall supply of the commodity. Water, sculptures, housing, and food are examples of inelastic goods. A change in price causes the quantity to decrease to zero.

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petra is working on developing a business plan for her new business. she knows who her target customers are and how they will benefit from her business. she is also working on determining why her business should exist. how can petra use this information in her business plan?

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The way that Petra is going to have to make use of this information in the business plan that she is going to write is that it would have to help her to decide the product that she is to bring into the new market.

What is a business plan?

This is the term that is used to refer to the business document that has to do with the plans that a person would wish to establish for their business. The business plan has to do with the good that is to be brought in and the way that the production has to be carried out.

It would describe the goals and the objectives that the business is going to try to meet and all of the ways that they would meet up with these goals for their customers.

Hence we would say that the information is going to help her to decide the good that would be beneficial to the people that she wants to create he business for.

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great falls corporation reported taxable income of $900,000 in 2022 and paid federal income taxes of $280,000. not included in the computation was a disallowed meals and entertainment expense of $3,500, tax-exempt income of $2,500, and deferred gain on a current-year transaction treated as an installment sale of $32,500. the corporation's current e

Answers

Unrelated business taxable income (UBTI) is income that a tax-exempt entity receives but is unrelated to the reason for why the entity is exempt from paying taxes.

What kind of income from unrelated businesses is taxed?

Unrelated business revenue is typically defined as income from a regularly carried on trade or business that is not significantly related to the charitable, educational, or other purpose that is the foundation of the organization's exemption.

What sort of business activity would be considered irrelevant for an exempt organization?

The following actions may result in unrelated business taxable income for a tax-exempt social club: selling food and drinks to visitors. selling wood removed from club property. accepting advertisements in publications such as club newsletters.

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aroon’s employer is currently developing a new marketing strategy. the top managers have developed the marketing strategy and have given it to aroon so that she can now develop an implementation plan. aroon’s company will most likely end up with which type of strategy?

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Aaron company will most likely end up with a centralized type of strategy.

Strategy The company takes a portfolio approach to strategic decision making by looking at all of the company's businesses to determine how to create the most value.

To develop corporate strategy, companies must look at how their various businesses fit together, how they influence each other, and how the parent company structure, to optimize human resources, processes, and governance. Corporate Strategy is built on business strategy, which is concerned with making strategic decisions for individual businesses.

There are several important components of corporate strategy that organizational leaders focus on. The main tasks of corporate strategy are:

Resource allocationOrganizational designPortfolio managementStrategic exchange

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cora agreed to sell rafael a rare, vintage car in 90 days. when the parties met to sign the paperwork and hand over the keys, cora breached their agreement by refusing to sell. if the court orders cora to sell rafael the car, as promised, which type of remedy is being granted? multiple choice

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cora agreed to sell rafael a rare, vintage car in 90 days. when the parties met to sign the paperwork and hand over the keys, cora breached their agreement by refusing to sell. if the court orders cora to sell rafael the car, as promised, remedy for specific performance has been granted.

Specific performance is known as an equitable remedy however any court can order the breaching party to render the performance which has been promised and  also to take a specific action.

Specific performance  remedy is available only when the subject matter of the contract is completely and  sufficiently unique and also money damages would be an inadequate remedy.

Specific performance is available in a sale of goods case unless and until the goods are rare and distinctive in such a way  that the buyer could not reasonably be expected to find those goods elsewhere.

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is the process of ensuring that the organization's objectives are being met and of correcting deviations from the plan. group of answer choices planning leadership controlling staffing communicating

Answers

The process of ensuring that the organization's objectives are being met and of correcting deviations from the plan is controlling. Thus the correct option is C.

What is a Business plan?

A business plan is referred to as a document that provides a roadmap to achieve the objective or vision of any organization. It provides a pathway that consists of directions on how things will take place in an appropriate manner.

Controlling helps to control business operations by comparing the standard measures with the actual performance and identifying the loopholes for making improvements.

Therefore, option C is appropriate.

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lori tripp wants to invest in an annuity for her grandchild charles, who is 10 years old. she wants the annuity to pay exactly $10,000 a year for 5 years, beginning on charles’s 21st birthday (september 15, 2028). she wants to know how much money she will have to invest on march 15, 2018, when she expects to receive an inheritance check, in order to provide such an annuity. you have already determined that the annuity will earn three percent interest, compounded annually.

Answers

Lori tripp will receive $64,684.10 at the end of 5 years with a total interest of 4,684.10 with an investment of 10000 every year for 5 years

What is investment?

An investment is something that is bought with the hope of making money or appreciating in value. A rise in an asset's value over time is referred to as "appreciation." A person who purchases a product as an investment does not expect to utilize it right immediately; rather, they want to use it to profit from it in the future.

When a financial asset is bought with the hope that it will boost earnings or be sold for a profit in the future, it is considered a financial investment. Investment is defined as an increase in the stockpile of physical capital, such as machinery.

How Does Investing Work?

The simplest explanation of how investing works is purchasing something for a bargain and then selling it for a higher price. This form of investment return is known as a capital gain. Realizing returns through obtaining capital gains or selling assets at a profit is one way to make money investing.

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he marketing plan is a comprehensive, written framework for strategically obtaining marketing objectives. a sport marketing plan can be written for a single sport product/service, a group of products/services, a new promotional strategy, or an entire sport organization.

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Sport marketing gives a captive audience constant, prolonged exposure throughout an event. Given that most sporting events last between two and four hours, the lesson is more likely to stick.

What is the plan for sport marketing?

The use of sporting and sports-related events to advertise a company, brand, or product is known as sports marketing. Using this strategy, marketers can use sports' appeal and popularity to draw attention to their company or product. The marketing and promotion of live sporting events is also included in the category of sports and entertainment marketing.

What is a framework for marketing planning?

A marketing strategy framework outlines how you'll carry out your marketing strategy and communicate with your audiences in a way that will support the accomplishment of your marketing objectives. It frequently serves as a model or visual illustration of what you hope to achieve.

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Tylenol products have extensive instructions for users to prevent accidental overdose and associated liver function complications. This is an example of which type of benefit that packaging can provide?.

Answers

The benefit of packaging provided by Tylenol products by indicating implications of accidental overdose is communication benefit.

The science, art, and techniques of wrapping or safeguarding products for dispersion, stockpiling, sale, and use is known as packaging. The method of creating, assessing, and generating packages is also referred to as packaging. Product packaging is utilized by companies to communicate information. Packaging includes nutritional information, usage instructions, characteristics, and advantages. Customer support information also appears on packaging to enable customers to reach companies or communicate with it as well as provide feedback or make suggestions.

In this case packaging of Tylenol products have been done in such a way to provide useful information about its usage as well as prevent the consumers from accidental overdose as it can be associated with liver function complication. Through its packaging company is communicating with the consumers in an indirect manner.

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in 2021, tpc incorporated sold investment land with a $474,000 book and tax basis for $775,000. the purchaser paid $100,000 in cash and gave tpc a note for the $675,000 balance of the price. in 2022, tpc received a $105,500 payment on the note ($67,500 principal $38,000 interest). assuming that tpc is using the installment sale method, compute its gain recognized in 2022.

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If  in 2021, t p c incorporated sold investment land with a $ 474,000 book and tax basis for $ 775,000 and tpc received a $105,500 payment on the note ($ 67,500 principal $ 38,000 interest). assuming that tpc is using the installment sale method,  its gain recognized in 2022 is: $26,216.

Recognized gain

We would have to make use of this formula to determine or find  the recognized gain

Recognized gain = Principal payment × ( Gain / contract price )

Where:

Principal payment  = $ 67,500

Gain = $ 301,000

Contract price = $ 775,000

Let plug in the formula

Recognized gain = ( $67,500 × ( $301,000 / $775,000 )

Recognized gain = $67,500 × 0.38838

Recognized gain = $26,215.6

Recognized gain= $26,216 ( Approximately )

Therefore we can conclude that the recognized gain is the amount of $26,216.

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you need to quickly make an important choice about the best packaging design for your company’s new product. you decide to make the decision and then tell your team why it was the best choice. which decision style should you use?

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When you decide to make the decision and then communicate to the team why that was the best choice, it characterizes the directive decision style.

What is a directive decision?

It corresponds to a decision-making process that is based on the leader's experience. In this decision style, the manager will use his own reasoning and knowledge about the situation to then make the decision, so that it is communicated to subordinates after it has already been made.

The advantages of directive decision making is the speed with which the process takes place, as it does not require other types of point of view.

Therefore, directive decision-making is usually carried out by already experienced leaders who have the basis to make a certain decision with property and effectiveness, for the success and positioning of the business in the active market.

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the market mechanism may make some people rich while leaving others poor. if such outcomes violate our vision of fairness, we say this is the market failure of . multiple choice question. externalities inequity public goods market power

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The market mechanism may make some people rich while leaving others poor. This is known as the market failure of inequity. The correct answer would be option B.

Market failure refers to a situation where there is an inefficient allocation of products and services in the open market. The incentive for logical behavior does not result in rational consequences for the group in a market failure.

Income inequality is common in free market economies, which suggests that inequality can be the outcome of a market failure. People who are born wealthy have a higher chance of becoming wealthy, while those who are poor have a higher chance of living in relative poverty. Some economists disagree when inequity is described as a market failure. They contend that fairness is not a function of markets. Fairness is not an economic issue; it is a political or social one.

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if the fed wishes to stimulate the economy, it could: i. buy u.s. government securities. ii. raise the discount rate. iii. lower reserve requirements.

Answers

It could buy U.S. government securities and lower reserve requirements.

Everyone who wants to invest in stocks, of course they will always be attached to securities or securities companies. Reporting from the official website of Investopedia, what is meant by securities are financial instruments that represent the position of share ownership in a public company.

That is, securities are evidence of share ownership in a public company. But in our country, securities are often claimed to have the same meaning as securities companies. There are at least two business activities carried out by securities companies, namely securities trading brokers and securities underwriters.

1. Securities Trading Broker

Companies have a role as securities trading intermediaries or broker dealers, so they will carry out securities trading activities in the form of securities for their own interests or for other people. In addition, securities companies will also usually carry out stock and bond buying and selling activities that can be carried out on the IDX or outside the IDX.

2. Underwriter

Another activity carried out by securities companies is guaranteeing the issuance of securities. This means that securities companies have full responsibility in helping prospective issuers to carry out public offering activities, known as initial public offerings (IPOs), with or without an obligation to buy the remaining unsold securities in the market.

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the video suggests that a key challenge for goodwill’s marketers is to change the view of many consumers that secondhand stores are musty, low-class operations with poor-quality merchandise.

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The video suggests that a key challenge for​ Goodwill's marketers is to change the view of many consumers that secondhand stores are​ musty, low-class operations with​ poor-quality merchandise. This exemplifies the psychological concept of​ perception, which is the process by which people​ select, organize, and interpret information to form a meaningful picture of the world.

This is further explained below.

What is the psychological concept of​ perception,?

Generally, According to what is seen in the film, one of the most important challenges facing Goodwill's marketers is to overcome the perception held by many customers that secondhand shops are musty, low-class enterprises that sell products of inferior quality.

In conclusion, This is a perfect illustration of the psychological notion of perception, which refers to the method by which individuals choose, organize, and interpret information in order to construct a meaningful image of the world around them.

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CQ

The video suggests that a key challenge for​ Goodwill's marketers is to change the view of many consumers that secondhand stores are​ musty, low-class operations with​ poor-quality merchandise. This exemplifies the psychological concept of​ __________, which is the process by which people​ select, organize, and interpret information to form a meaningful picture of the world.

Rental cost for offices spaces have been going up at 6. 2% per year compounded annually for the past 5 years. If office space rent is now at a rate of $32 per square foot per month, what were the rental rates 5 years ago?.

Answers

The rental rates were calculated to be $23.7 per square foot per month five years ago if the rental costs have been going up at 6.2% per year compounded annually.

We can use the formula for compound interest to determine the rental rates that were five years ago;

A = P (1 + r/n)^nt

In this formula, the final amount or value is represented by A, the interest rate is given as r, n is used to represent the number of times the interest was applied per time period and the number of time periods elapsed is given as t.

Adding the values in this compound interest equation;

P (1 + 0.062)^5 = 32

P = 32 ÷ (1.062)^5

P = 23.7

Therefore, the rental rate five years ago was $23.7 given that the current rate of rent is 32$ per square foot per month of office space.

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u.s. gaap and ifrs blank publicly traded companies include segmented financial data prepared for external users that use the same methods used in internal segment reports.

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There are some significant discrepancies between the Generally Accepted Accounting Principles (GAAP) in the United States and the International Financial Reporting Standards (IFRS), the accounting standard used in more than 144 nations (GAAP).

What is the difference between IFRS and US GAAP ?

Conceptually speaking, IFRS is thought to be a more principles-based accounting standard than GAAP, which is thought to be more rules-base.

It might be argued that IFRS represents and better captures the economics of a transaction than GAAP because it is more principles-based. The following lists a few of the distinctions between the two accounting frameworks.

KEY LESSONS

Generally Accepted Accounting Principles (GAAP), which are thought to be more rules-based, are contrasted conceptually with International Financial Reporting Standards (IFRS), which are thought to be more principles-based.

Any reversal is banned under GAAP once inventory has been written down.

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decision point: sustaining growth it has now been 3 years since burnin' rock was launched, and after a shaky start in the introduction stage, the product appears to be entering the maturity stage of the product life cycle. product sales remain strong, but many competitors have entered the market. the vice president of marketing stops by your office and asks how you plan to sustain burnin' rock's market growth.

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As the firm's product is about to enter the maturity stage of the product life cycle, that is, it is still in growth stage where the product sales remain strong and many competitors have entered the market, the strategies that will help to improve the product growth are:

improving product quality.adding new product featuresadding support services to grow your market shareentering a new markets segmentskeeping the pricing as high to keep demand and profits high.increase of distribution channels to cope with growing demand.

What is a product life cycle?

Basically, it refers to the length of time from which a product is introduced to consumers into the market until it is been removed from the shelves. It is used by management and marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging.

The four stages in a product's life cycle are:

introduction,growth, maturity,decline.

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the student council is hosting a drawing to raise money for scholarships. they are selling tickets for $10 each and will sell 700 tickets. there is one $3,000 grand prize, three $400 second prizes, and fifteen $30 third prizes. you just bought a ticket. find the expected value for your profit. round to the nearest cent.

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The expected value for your profit. round to the nearest cent $6.40 when the student council is hosting a drawing to raise money for scholarships.

What is Profit ?

The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit. It is equivalent to total income less total expenses, which includes both direct and indirect expenses.

It is distinct from accounting profit in that it only refers to the costs that are explicitly stated on a company's financial statements. Accounting profit is calculated by subtracting the company's entire revenue from its explicit costs. When examining a corporation, an economist takes into account all opportunity costs, both explicit and implicit. Economic profit is therefore less than accounting profit. According to economic theory, a company's total revenue must exceed its opportunity cost in order to be profitable.

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a company recently lowered its service performance from 99% product availability to 97% product availability. the change saved the company exactly $1million per year in inventory carrying cost. senior management now wants to lower the service level to 95% from 97%. such a further change is likely to save:

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A company recently lowered its service performance from 99% product availability to 97% product availability. Such a further change is likely to save less than one million.(option b is correct)

A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand. Products are sometimes referred to as merchandise in the retail sector, and they are purchased as raw materials in the manufacturing sector before being sold as finished goods. A form of product that is also considered is a service.

The most common types of commodities are basic materials like metals and agricultural goods, but they can also include anything that is readily available on the open market. In project management, products are the formally defined project deliverables that include or assist in achieving the project's goals.

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The question was incomplete. Check below the full question.

A company recently lowered its service performance from 99% product availability to 97% product availability. The change saved the company exactly $1million per year in inventory carrying cost. Senior management now wants to lower the service level to 95% from 97%. Such a further change is likely to save (explain!):

a) less than $1 million

b) about another $1 million

c) more than $1 million

williams software has 9.4 percent coupon bonds on the market with 19 years to maturity. the bonds make semiannual payments and currently sell for 107.5 percent of par.

Answers

Workman Software has 10.6 percent coupon bonds on the market with 17 years to maturity. The bonds make semiannual payments and currently sell for 108.1 percent of par.

What is the current yield on the bonds?

Answer:

9.81%

Explanation:

Given that:

Coupon rate of bond = 0.106 %

Years of maturity = 17 years

n = 17 × 2 = 34

Interest =

= $53

The current selling price on bonds = $1000 × 108.1%

= $1000 ×  1.081

= $1081

Current yield =

=  9.81%

Workman Software has 10.6 percent coupon bonds on the market with 17 years to maturity. The bonds make semiannual payments and currently sell for 108.1 percent of par.  

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Besides plain business cards, hammerpress also offers business cards with special ink and business cards with embossing. They need to price these special business cards relative to the plain business cards. This pricing strategy is also known as ____________.

Answers

The need to price these special business cards relative to the plain business cards for pricing strategy is also known as effective pricing strategy.

The pricing strategy is a principle of marking the right price of the product according to its market value with some added value and a trade discount so that the shopkeeper or the seller hampers business cards that are available for them to sell new goods.

The special pricing technique also known as the effective pricing strategy is planned in advance with the production process so that actual cost can be released easily.

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In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends. True or false?.

Answers

It is true that ''In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends''.

There are three fundamental categories: causal models, time series analysis and projection, and qualitative approaches. The first makes use of qualitative data (such as the judgement of experts) and details about noteworthy occasions of the sort already discussed, and may or may not take historical factors into account.

Although there are many commonly used quantitative budget forecasting tools, in this article we concentrate on the top four techniques: Straight-line, moving average, simple linear regression, multiple linear regression, and straight-line.

The Global Forecast System (GFS) of the National Weather Service and the European Center for Medium-Range Weather Forecast (ECMWF) model are the two most well-known NWP models. The American and European models are other names for them.

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Billing errors, even small ones, can make customers quite upset. Therefore, maintaining high-quality data with regards to product pricing, discounts, and sales taxes benefits businesses most directly by _____.

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Billing errors, even small ones, can make customers quite upset. Therefore, maintaining high-quality data with regard to product pricing, discounts, and sales taxes benefits businesses most directly by increasing customer satisfaction.

What is Business?

An economic activity that involves the exchange of goods and services with teh help of buying and selling with the objective to gain some profit is called Business.

Customer satisfaction plays a significant role in the profit of any bsuiness. If a business causes any error in billing which disturbs customer service.

In order to provide better customer satisfaction the business should focus on its process and tries to eliminate the reasons causing the error.

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The law of supply says that if all other factors are equal, the supply will _____________ if the price goes up, and the supply will _______________ if the price goes down.

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According to the law of supply, if all other things remain constant, the supply will rise with an increase in price and fall with a decrease in price.

A fundamental tenet of economics is the law of supply, which states that, given other factors remaining constant, an increase in the price of commodities will directly translate into an increase in their supply. Because consumers' spending power is constrained due to their restricted resources, demand for a given good or service declines as prices rise.

In contrast, as the product becomes more affordable, demand increases, with a drop in pricing, the rule still applies.

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gleeson corp. obtained the following information from its absorption costing accounting records: operating income $24,000 total product costs incurred during the period $16,000 value of beginning work-in-process and finished goods inventories $0 value of ending work-in-process and finished goods inventories $0 sales $50,000 the total period costs incurred this period equals: select one: a. $20,000 b. $10,000 c. $48,000 d. $15,000

Answers

The total Period Costs incurred this period equals $10,000. Expenses that cannot be capitalized on a firm's balance sheet are referred to as period costs.

Period cost are expensed in the duration in which they are incurred and are reported on the balance sheet. Period costs are also referred to as period expenses.

Period costs are calculated using no specific method or formula. For calculating period costs, management could track period cost records and identify those costs that are charged in the profit and loss statement but are not directly related to inventory production.

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awkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. the prospective client's refusal to permit this will bear directly on hawkins' decision concerning the

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The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the integrity of management.

A client is someone who uses the services of a professional organization. The term client is usually used when someone uses a service, while a consumer or customer relates to the purchase of a product

Tips for Getting Clients in Property Marketing

Deepen Property KnowledgeVisualize Properties Clearly and in DetailCreate Good CommunicationDon't Give False Promises to Attract ClientsListen to Client's WishBe patient

Among these 6 ways, the thing to note is to be patient, Patience is one of the most important things for a property agent. Sometimes clients have many desires or even the process of buying and selling property is protracted to take quite a long time. This sometimes makes property agents lose patience and do things that are uncomfortable for clients.

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required: 1. suppose dana’s would like to generate a profit of $800. determine how many rosettes it must sell to achieve this target profit. 2. if dana’s sells 1,100 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. 3. calculate dana’s degree of operating leverage if it sells 1,100 rosettes. 4a. using the degree of operating leverage, calculate the change in dana’s profit if unit sales drop to 935 units. 4b. prepare a new contribution margin income statement to verify change in dana's profit.

Answers

Dana needs to sell 1,315 rosettes to achieve this target profit, the Margin of safety in units=200 rosettes, the Margin of safety in sales dollars=$800, and the Percentage margin of safety=1.67%

Dana's degree of operating leverage=6, An increase in the degree of operating leverage implies a reduction in the profits by 750% and Contribution margin=$3,024.

In finance, leverage is any technique related to borrowing a budget to shop for matters, hoping that future profits could be many times extra than the value of borrowing. This approach is known as after a lever in physics, which amplifies a small input force into a greater output pressure, due to the fact hit leverage amplifies the relatively small amount of money wished for borrowing into large quantities of earnings. But, the approach additionally entails the excessive hazard of no longer being capable of pay again a big mortgage. Normally, a lender will set a restriction on how a lot of a chance it is ready to take and could set a restrict on how good deal leverage it's going to allow, and could require the obtained asset to be furnished as collateral safety for the loan.

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