Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible
Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 8DQ: Describe the cost formula for a strictly fixed cost such as depreciation of 15,000 per year.
Related questions
Question
Explain in detail
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning