Please finish week 13 and week 14 homework in the pearson link for Fin class. Attempt for each question is unlimited so you can try multiple times. Chapter 13

Please end week 13 and week 14 homework within the pearson hyperlink for Fin class. Try for every query is limitless so you may strive mutiple instances. Web site hyperlink:

Chapter 13

Query 1

  1. We all know that the working level is the extent of gross sales (Q) at which all fastened (FC) and variable working prices (VC) are coated, and EBIT equals zero. Due to this fact, the working breakeven level is calculated by equating the next components:

Q = FC

     P – VC

Due to this fact,

         Q =   $73, 400       = 18, 395. 99 = 18, 396 models

              ($13.71 – $9.72)

The working breakeven level is eighteen 396 models.

  1. Whole working price = FC + Q x VC

Due to this fact,

          Whole working prices = $73, 400 + 18, 396 models x $9.72 per unit = 252, 209. 12

The whole working prices on the breakeven quantity are 252, 209

  1. Whole models that Barry can promote in a 12 months = Models per 30 days x 12 months

Due to this fact,

         Whole models = 2, 020 per 30 days x 12 = 24, 240 models

Barry ought to go into enterprise as a result of the entire models that Barry can promote in a 12 months are 24, 240 and it exceeds the working breakeven by 5 844 books per 12 months.

  1. EBIT = Whole models x (P – VC) – FC

Due to this fact,

       EBIT = 24, 240 x ($13.71 – $9.72) – $73, 400 = $23, 318

If he sells the minimal 2, 020 books per 30 days, the EBIT is $23, 318

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