Its accounting please help me

9514 1404 393

  1a: $84; 1b: 30,000A +15,000B; 1c: 37,000A +18,500B

  2: 4,000 composite units

Step-by-step explanation:

We assume your "composite unit" consists of the smallest set of units in the ratio in which they are sold.

A "composite unit" is 1B +2A. The contribution margins are the difference between the selling price and the variable cost per unit:

  A: 72 -40 = 32

  B: 48 -28 = 20

  composite unit: 2A+B = 2(32) +20 = 84

(a) The contribution margin per composite unit is $84.

__

(b) The break-even point is the number of composite units that have a total contribution margin equal to the total fixed costs:

  84n = 1260000

  n = 1260000/84 = 15000

30,000 units of A and 15,000 units of B must be sold to break even.

__

(c) The additional number of composite units required to achieve pre-tax income of 294000 is ...

  294,000/84 = 3500

37,000 units of A and 18,500 units of B must be sold for a pretax income of $294,000.

__

Contribution margins per unit are ...

  H: 6 -4 = 2

  C: 8 -6 = 2

  I: 10 -7 = 3

A composite unit is 3H +2C +I, so the contribution margin per composite unit is ...

  3(2) +2(2) +1(3) = 6 +4 +3 = 13 . . . dollars

The break-even point is 52,000/13 = 4,000 composite units

=====================================

explanation

the graph has a slope of 1/3 because each time you move up 1, you go to the right 3. so, slope = rise/run = 1/3. we can cross choice a off the list since we want a slope of 3, rather than 1/3.

the first table shown has a slope of -3. this is because the rise is -6 and the run is 2, so slope = rise/run = -6/2 = -3. note how x increases by 2 each time (run) and y drops by 6 each time (rise). choice b can be eliminated.

the second table has a slope of 3. each time x goes up by 1, the y values increase by 3. slope = rise/run = 3/1 = 3. alternatively you can use the slope formula to prove that the slope is 3 here. use any two rows of values to generate the two points. choice c is one of the answers

the third table also has a slope of 3. let's use the slope formula to prove as such. i'm going to use the first two rows of the table. so i'll use the two points (2,1) and (5,10)

m = slope

m = (y2-y1)/(x2-x1)

m = (10-1)/(5-2)

m = 9/3

m = 3 so we get a slope of 3

choice d is the other answer