1 answer

Riveria Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $150,000. The maximum output capacity of the company is 40,000 units per year.

Riveria Company Contribution Margin Income Statement For Year Ended Dec. 31,2017

Sales.............................$750,000

Variable costs................60,000

Contribution Margin......150,000

Fixed costs...................200,000

Net loss........................$(50,000)

Required: 1. Compute the break-even point in dollar sales for 2017

2.Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and no change occurs in the unit selling price. (Round the change in variable costs to a whole number.)

3. Prepare a forecasted contribution margin income statement for 2018 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due.

4. Compute the sales level required in both dollars and units to earn $200,000 of target pretax income in 2018 with the machine installed and no change in unit sales price. (Round answers to whole dollars and whole units.

5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due.

1 answer
#####
Suppose you intend to estimate ln(1.2) using a linearization ?(?) = ?(?) + ?′(?)(? − ?)....

Suppose you intend to estimate ln(1.2) using a linearization ?(?) = ?(?) + ?′(?)(? − ?). a. What are appropriate choices for ?(?) and ?? b. Set up and evaluate the computation that would give you the desired estimate for ln(1.2)....

1 answer
#####
Suppose that LilyMac Photography has annual sales of $239,000, cost of goods sold of $174,000, average...

Suppose that LilyMac Photography has annual sales of $239,000, cost of goods sold of $174,000, average inventories of $5,400, and average accounts receivable of $25,900. Assume that all of LilyMac’s sales are on credit. What will be the firm’s operating cycle? (Use 365 days a ye...

1 answer
#####
See Hin Which of the following describes the Lacoperon in E.coli when lactose, but not glucose,...

See Hin Which of the following describes the Lacoperon in E.coli when lactose, but not glucose, is present in the culture medium? Choose one: A. The Lacrepressor, but not CAP, is bound to the Lacoperon's regulatory DNA and the Lacoperon is not expressed. B. Neither CAP nor the Lacrepressor is bo...

2 answers
#####
Please answer both. The following pertain to the circuit below. What is the equivalent resistance of...

please answer both. The following pertain to the circuit below. What is the equivalent resistance of the circuit? What is the current through R_4? What is the voltage across R_2? Solve for the magnitude and direction of the current in each of the branches of the circuit shown....

1 answer
#####
Add curved arrows to the reactant side of the following SN2 reaction.

Add curved arrows to the reactant side of the following \(\mathrm{S}_{\mathrm{N}} 2\) reaction....

1 answer
#####
How do you simplify # 2^2+ (-1.4+ 3^3/-43)+3^3-6.3+(-36+7.6-33^3)-2# using PEMDAS?

How do you simplify # 2^2+ (-1.4+ 3^3/-43)+3^3-6.3+(-36+7.6-33^3)-2# using PEMDAS?...

1 answer
#####
What are the mean and standard deviation of a binomial probability distribution with #n=2 # and #p=4/17 #?

What are the mean and standard deviation of a binomial probability distribution with #n=2 # and #p=4/17 #?...

1 answer
#####
Why does the Alkaline Lysis solution (III) need to be ice-cold?

Why does the Alkaline Lysis solution (III) need to be ice-cold?...

1 answer
#####
A character array that was taken from received raw SMS format was {'+','C','M','T',' ','2','0','2','0','-','2','9','-','1','2'}. Create a program that will extract the date and store it in a character array with the following format {'M','M','/','D','D',

A character array that was taken from received raw SMS format was {'+','C','M','T',' ','2','0','2','0','-','2','9','-','1','2'}. Create a program that will extract the date a...

1 answer
#####
10. Find the value of Sizl=1062-ajadz for all values of|al # 10. Explain 21 11. Use...

10. Find the value of Sizl=1062-ajadz for all values of|al # 10. Explain 21 11. Use the residue theorem to compute Jo de e Show your work 12. Show that Sizlar 57*** dz = 0 as R70....

1 answer
#####
3)Which of the following two hypotheses: 1) Progressive evolution of a single lineage and 2) Evolutionary...

3)Which of the following two hypotheses: 1) Progressive evolution of a single lineage and 2) Evolutionary radiation is supported by evidence? Describe the evidence while proving a brief explanation. (This topic is with regards to human evolution)....

1 answer
#####
Throughout the 2000s, China’s exchange rate was considered to be consistently below the free-market equilibrium. Without...

Throughout the 2000s, China’s exchange rate was considered to be consistently below the free-market equilibrium. Without intervention by the central bank, this would lead to excess (demand/ supply) of the yuan. How would the central bank in China have maintained the desired exchange rate?...

1 answer
#####
9. [1/2 Points] DETAILS PREVIOUS ANSWERS SCALCET8 7.3.002. Evaluate the integral using the indicated trigonometric substitution....

9. [1/2 Points] DETAILS PREVIOUS ANSWERS SCALCET8 7.3.002. Evaluate the integral using the indicated trigonometric substitution. (Use C for the constant of integral x3 x = 5 tan(O) x² + 25 / __+ dx, 3 sec 3 3(0) 125 sec(0) + c x Sketch and label the associated right triangle. V x2 + 2 + 25 x&su...

1 answer
#####
Eq 4.25 eq 4.27 The Stefan-Boltzmann law can be employed to estimate the rate of radiant...

eq 4.25 eq 4.27 The Stefan-Boltzmann law can be employed to estimate the rate of radiant energy loss from a surface, as in H = AeoT4 where H is in watts, A = the surface area (m2), e = the emissivity (dimensionless quantity that characterizes the rate of heat loss from a material versus a perfect ...

1 answer
#####
Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a...

Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i.e., straight death benefit) life insurance policy until he is 65. The policy will expire on his 65th birthday. The probability of death in a given year is provided. x = age 60 61 62 63 64 P(death at thi...

1 answer
#####
The Rooney Management Association held its annual public relations luncheon in April Year 2. Based on...

The Rooney Management Association held its annual public relations luncheon in April Year 2. Based on the previous year's results, the organization allocated $27,938 of its operating budget to cover the cost of the luncheon. To ensure that costs would be appropriately controlled, Molly Hubbard, ...