Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that sales are predicted to be $18,750, the

Assume that sales are predicted to be $18,750, the expected contribution margin is $7,500, and...

50.1K

Verified Solution

Question

Accounting

image
Assume that sales are predicted to be $18,750, the expected contribution margin is $7,500, and a net loss of $1,250 is anticipated. The break-even point in sales ($) is: Select one: a. 15,625 b. 14,583 c. 10,417 d. 21,875 e. 20,000 XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9XDLH; R-square = 0.90); [Y= $120,000 + $5xMhr; R- square = 0.10): [Y=190,000+20; R-square=0.55). How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: a. 10% b. 55% c. 45% d. None of the answers given e. 90%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students