| Math 103 Final Project – Parts 1, 2, and 3 | | | Math 103 Instructor: Toni Robertson December 11, 2010 Math 103 Instructor: Toni Robertson December 11, 2010 Part 1: 1a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $15,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $12,000. The shortest loan period for the $15,000 car that would be under our $500 limit is the 36 month loan at a rate of $348.93 per month.
Sales units Sales Selling price: $250 100,000 400 Selling price: $250(0.1)= $275 137500 Variable cost: $160 variable cost: $160 Fixed cost: 22500 Fixed cost: 22,500(0.1)= 24750 1. Compute the company’s current break-even point in units and dollars? Break even Units: Fixed expense/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM Ratio: units 90/ $250 selling price = .36 2. What is the company’s current margin of safety in Units, dollars and percentage? Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted.
He needs to have $21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar) • $26,454 • $19,444 • $22,680 • $16,670 21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? • the statement of net worth • the statement of cash flows • the statement of working capital • the statement of retained
9. Given: wages, salaries, and fringe benefits = $7.2 trillion; interest = $550 billion; profits = $300 billion; rent = $50 billion; indirect business taxes = $400 billion; and depreciation = $600 billion. Find National Income, NNP, and GDP. 10. Given: Consumption = $5.8 trillion; investment = $1 trillion; government spending = $1.2 trillion; indirect business taxes = $300 billion; imports = $650 billion; and exports = $550 billion.
What will be the monthly break-even point in number of passenger cars? 190 -70 = 120 90 * .6 = 54 Break-even for number of cars: (3,150,000 +0)/ (120) = 26250 26250/54 : 486 d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers
Case Study 2 Solution Number of seats per passenger train car 90 Average load factor(percentage of seats filled) 70% Average full passenger fare $160 Average variable cost per passenger $70 Fixed operating cost per month $3,150,000 a. What is the break even point in passengers and revenues per month Contribution margin per passanger = $90 Break even point per passanger = $35,000 35000 Contribution margin ratio= $2 Break even point in dollars = $5,600,000 5600000 b. What is the break even point of passenger train cars per month 63 Compute # of seats per train car(remember load factor?) 555.5555556 Number of train cars rounded 556 c. If Springfield Express raises its average passenger fare to $190, it is estimated that the average load factor will decrease to 60 percent. What will the monthly break even point in the number of passenger cars?
Acct Unit 1 Homework Assignment 06/12/15 Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners’ equity. What are the partnership’s total liabilities? $350,000 – Liabilities = $100,000 $350,000 - $100,000 = $100,000 - $100,000 Answer: $250,000 = Liabilities Question 2: During the first month of operation, Brady Brothers made sales to customers totaling $12,000 but received only $6,000 from customers in cash. Brady Brothers incurred $8,000 for operating expense but only paid $5,000 in cash for those expenses. What was Brady Brothers cash basis income?
Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? 6.
c) Federal government imposes a price ceiling of $2 per liter to stop price gauging d) Toyota launches a new superhybrid vehicle that gets 50 km per liter. e) The price of parking increases dramatically in a number of major urban areas. f) Resorts announce price cuts in reaction to light bookings so far year-end school holiday 2. Find a recent newspaper or magazine article that discuses recent price changes for a particular good,
DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.