g The corporate charter of Imp Company authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of operations, the company had the following transactions: January 1 sold 8 million shares at $15 per share June 3 purchased 2 million shares of treasury stock at $18 per share December 28 sold the 2 million shares of treasury stock at $20 per share What amount should the company report as additional paid-in capital in its December 31, 2021, balance sheet

Answers

Answer 1

Answer:

$116 million

Explanation:

Calculation of Additional Paid-in-Capital

Jan 1: 8 million*$14             $112 million

June 3: 2 million*$17         ($34 million)

Dec 28: 2 million*$19        $38 million

Paid-in-Excess capital      $116 million

So, the company should report $116 million as additional paid-in capital in its December 31, 2021, balance sheet.


Related Questions

Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use the building as-is for operations but immediately razes the shed at a cost of $5,000 minus scrap recovery of $1,000. A recent tax appraisal of the property allocated $100,000 to the land and $400,000 to the building. In the entry to record the acquisition of the property, at what amount will Castille debit Land

Answers

Answer:

$120,800

Explanation:

Give that;

Cost of land = $600,000

Associated expenses :

Razing down the shed = $5,000

Income from scrap = $1,000

Total expenses = $4,000

The total cost of the land would be;

Total cost of land = Cost of land + Total expense

= $600,000 + $4,000

= $604,000

Tax allocation: land and building = $500,000

Land allocation will now be

= 100,000/500,000 × $604,000

= 0.2 × $604,000

= $120,800

Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.

a. Invested cash in the business, $3,100.
b. Bought equipment for cash, $500.
c. Bought equipment on account, $800.
d. Paid cash on account for equipment purchased in transaction (c), $300.
e. Withdrew cash for personal use, $700.

Answers

Answer:

Sheryl Hansen

T- Accounts

Cash

Account Titles                  Debit   Credit

a. Sheryl Hasen, Capital $3,100

b. Equipment                                 $500  

d. Accounts Payable                       300

e. Sheryl Hasen, Drawings             700

Sheryl Hasen, Capital

Account Titles                  Debit   Credit

a. Cash                                        $3,100

Equipment

Account Titles                  Debit   Credit

b. Cash                             $500

c. Accounts Payable          800

Accounts Payable

Account Titles                  Debit   Credit

c. Equipment                                 $800

d.  Cash                            $300

Sheryl Hasen, Drawings

Account Titles                  Debit   Credit

e. Cash                            $700

Explanation:

a) Data and Analysis:

a. Cash $3,100 Sheryl Hasen, Capital $3,100

b. Equipment $500 Cash $500

c. Equipment $800 Accounts Payable $800

d. Accounts Payable $300 Cash $300

e. Sheryl Hasen, Drawings $700 Cash $700

Information you might study in a particular class is called (blank)


an elective

a club

curriculum

an internship

Answers

Answer:

curriculum is the correct answer right no

Answer:

Information you might study in a particular class is called curriculum

The marketing manager at Home Depot works with Hunt Advertising to coordinate all promotional messages for a product or a service. For example, to sell the new line of lighting fixtures, the marketing manager and Hunt Advertising make sure that all messages are consistent at every contact point at which Home Depot interacts with the consumer. This is an example of _______. a. AIDA model b. content marketing c. integrated marketing communications (IMC) d. promotional mix

Answers

Answer:

The answer is "Choice d"

Explanation:

The Advertising Mix is the integration of publicity, personal selling, advertising, and marketing. To maintain a sustainable mix of those promotional resources, advertisers need to look only at the following questions. It really is the company's promotional software. With the assistance of the marketing manager and a 3rd parties advertiser, they sell the offering.

Lynch Company began operations in 2019. The company reported $24,000 of depreciation expense on its income statement in 2019 and $26,000 in 2020. On its tax returns, Lynch deducted $32,000 for depreciation in 2019 and $37,000 in 2020. The 2020 tax return shows a tax obligation (liability) of $12,000 based on a 25% tax rate.

Required:
Determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.

Answers

Answer:

2019 $8,000

2020 $19,000

Explanation:

Calculation to determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.

Calculation for 2019 Temporary differences

2019

Using this formula

2019 Temporary differences = 2019 Depreciation- 2019 depreciation expense

Let plug in the formula

2019 Temporary differences =$32,000 - $24,000

2019 Temporary differences= $8,000

Calculation for 2020 Temporary differences

Using this formula

2020 Temporary differences=(2019 Depreciation+2020 Depreciation)-( 2019 Depreciation expense+2020 Depreciation expense)

Let plug in the formula

2020 Temporary differences= ($32,000 + $37,000) - ($24,000 + $26,000)

2020 Temporary differences=$69,000-$50,000

2020 Temporary differences= $19,000

Therefore the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020 will be $8,000 and $19,000

You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenence margin is $2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call

Answers

Answer:

The correct answer is "43.875". A further explanation is provided below.

Explanation:

The given values are:

Initial margin,

= $3,375

Maintenance margin,

= $2,500

Barrels of oil,

= 1,000

Now,

The loss on the position will be:

= [tex]3375-2500[/tex]

= [tex]875[/tex] ($)

then,

⇒  [tex]1000 (P - 43) = 875[/tex]

⇒  [tex]1000P-43000=875[/tex]

On adding "43000" both sides, we get

⇒  [tex]1000P-43000+43000=875+43000[/tex]

⇒                             [tex]1000P=43875[/tex]

⇒                                    [tex]P=\frac{43875}{1000}[/tex]

⇒                                        [tex]=43.875[/tex]

Sally took out a $70,000, 5-year term policy at age 45. The premium per $1,000
was $4.21. She will be 50 years old this year. The premium per $1,000 will be
$5.90. What is the percent increase?*
40%
45%
42%
52%
K

Answers

I’m sorry for making it happen again but it’s a not

Juan Martinez, a systems engineer at a construction machinery company, just received his performance appraisal from his boss, Emily Taylor. Although Juan has been mostly an average performer, Emily gave him below average ratings due to the fact that the person who Emily evaluated before Juan was Max Houser, an exceptional performer. This is an example of what type of rating error

Answers

Answer: Contrast

Explanation:

Contrast error is a type of rating error whereby how a target person is evaluated in a group is dependent and affected by how others perform in that group.

Contrast error is used in appraising the performance of an individual and the rating of a candidate will be affected by how the person before him or her was rated. Based on the question, Juan was rated below average because the person before him was given an exceptional rating.

Harvey Dent wants to sell the $43,000 TriForcebonds he purchased 3 years ago at par value. The bonds have a 2.80% coupon, 9 years to maturity, and are trading at a 2.45% yield to maturity. If Harvey sells the bonds today, his proceeds from the sale would result in:

Answers

Answer: $1203

Explanation:

Based on the information given in the question, the proceeds gotten from the sales if Harvey sells the bonds today will be:

Formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)

= PV(2.45%, 9, -43000 × 2.8%, -43000)

= 44203

Therefore, the proceeds will be the difference between the selling price and the purchase price which will be:

= $44203 - $43000

= $1203

The total value of the bond, or the amount you'll earn if you sell it, is the sum of the face value and the bond's added interest value. The coupon for each bond specifies the interest rate.

The answer, $1203 is the proceeds from the sale would result in.  

If Harvey sells the bonds today, based on the evidence presented in the question, the revenues will be:

The formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)

[tex]= PV(2.45, 9, - 43000 \text{ x } 0.028, - 43000)\\= 44203[/tex]

As a result, the revenues will be equal to the difference between the selling and buying prices, which will be:

[tex]= 44203 - 43000= $1203[/tex]

For more information regarding the bond proceeds, refer to the link:

https://brainly.com/question/13407939

The comparative balance sheets for Pina Colada Corp. show these changes in noncash current asset accounts: accounts receivable decreased $78,500, prepaid expenses increased $28,200, and inventories increased $41,700. Compute net cash provided by operating activities using the indirect method, assuming that net income is $226,500.

Answers

Answer:

Cash Flow from Operating Activities

Net Income                                                  $226,500

Decrease in Accounts Receivable             $78,500

Increase in Prepaid Expenses                   -$28,200

Increase in Inventories                               -$41,700

Cash Provided by Operating Activities    $235,100

Decentralizing Group of answer choices Is a trend that creates a head-quarter office Organizes business in independent business units Creates a more complex and less robust organization Decisions are made at the headquarters

Answers

Hi my name is Jeff and I will be your assistant today

Which pathways are part of the Human Services career cluster? Select all that apply.


o Counseling and Mental Health Services


o Support Services


o Family and Community Services


o Early Childhood Development and Services


o Therapeutic Services


o Consumer Services


o Personal Care Services

Answers

Answer:

consumer services

counseling and mental health services

early childhood development and services

family and community services

personal care services.

Explanation:

The Human Services Career Cluster are simply skills that prepares one to take on jobs that cater for human and family needs. This job could either be as a social worker, pedicurist, etc, as human needs will be addressed.

The pathways which are part of the Human Services career cluster include consumer services

counseling and mental health services

early childhood development and services

family and community services

personal care services.

Answer:

A,C,D,F,G

Explanation:

Red Co. had the following transactions through December 31: Cash proceeds from the sale of investment in Gold Co. stock $ 15,000 Dividends received on investment in Blue Co. stock $ 10,000 Repaid principal on a loan to the bank $ 35,000 Acquired investment in Yellow Co. stock $ 75,000 Proceeds from the disposal of factory equipment $ 12,000 What amount should Red report as net cash used by investing activities in its statement of cash flows for the period ended December 31

Answers

Answer:

Red Co.

The amount that Red Co should report as net cash used by investing activities in its statement of cash flows for the period ended December 31 is:

= $38,000.

Explanation:

a) Data and Calculations:

Investing activities section of the Statement of Cash Flows:

Sales of investment in Gold Co stock       $15,000

Dividends received on Blue Co. stock        10,000

Purchase of investment in Yellow Co       (75,000)

Proceeds from the disposal of equipment 12,000

Net cash used by investing activities      $38,000

The Chewbacca Starship Company had the following transactions during the month of December:

a. purchased inventory on account for $230,000 (assume Chewbacca uses a perpetual inventory system)
b. paid $57,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $154,000 to credit customers for $285,000
d. collected $265,000 in cash from credit customers
e. paid suppliers of inventory $210,000.

Required:
Post the above transactions to the T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $73,500, $60,000, and $39,000, respectively.

Answers

Answer:

The Chewbacca Starship Company

T-accounts:

Cash

Date   Account Titles                 Debit        Credit

Dec. 1 Beginning balance      $73,500

Dec. 31 Salaries expense                        $57,000

Dec. 31 Accounts receivable 265,000

Dec. 31 Accounts payable                       210,000

Accounts receivable

Date   Account Titles           Debit        Credit

Dec. 1 Beginning balance   $60,000

Dec. 31 Sales revenue         154,000

Dec. 31 Cash                                     $265,000

Accounts payable

Date   Account Titles           Debit        Credit

Dec. 1 Beginning balance                  $39,000

Dec. 31 Inventory                               230,000

Dec. 31 Cash                    $210,000

Inventory

Date     Account Titles           Debit        Credit

Dec. 31 Accounts payable   $230,000

Sales revenue

Date     Account Titles           Debit        Credit

Dec. 31 Accounts receivable              $154,000

Salaries Expense

Date     Account Titles           Debit        Credit

Dec. 31 Cash                       $57,000

Explanation:

a) Data and Analysis:

a. Inventory $230,000 Accounts payable $230,000

b. Salaries expense $57,000 Cash $57,000

c. Accounts receivable $154,000 Sales revenue $154,000

d. Cash $365,000 Accounts receivable $265,000

e. Accounts payable $210,000 Cash $210,000

Opening balances:

Cash $73,500

Accounts receivable $60,000

Accounts payable $39,000

The crowding out effect: increases the multiplier effect, so that an increase in taxes reduces income by more. increases the multiplier effect, so that an increase in taxes reduces income by less. decreases the multiplier effect, so that an increase in taxes reduces income by more. decreases the multiplier effect, so that an increase in taxes reduces income by less.

Answers

Answer: decreases the multiplier effect, so that an increase in taxes reduces income by more.

Explanation:

The multiplier effect is the increase aggregate production in the economy due to an increase in spending by the government. A crowding out effect refers to when the spending by the government is at the expense of the private sector such that the private sector is unable to invest and grow.

The multiplier effect will therefore decrease as private investment slows. This leads to lower incomes for people as the economy is not expanding. If the government were to tax people at that point, it would take more of their income than less.

"Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.12 per unit, and the variable labor cost is $1.9 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $420,000 during a year in which total production is 189,000 units. What are the total costs for the year? c. If the selling price is $8.55 per unit, what is the NSI break-even on a cash basis? d. If depreciation is $94,500 per year, what is the accounting break-even point?"

Answers

Answer:

Night Shades Inc. (NSI)

a. The variable cost per unit is:

= $3.02.

b. The total costs for the year is:

= $990,780.

c. The NSI break-even on a cash basis is:

= $503,091.

d. The accounting break-even point is:

= $647,150.

Explanation:

a) Data and Calculations:

Variable costs per unit:

Materials = $1.12

Labor =        1.90

Total =      $3.02

Total production units = 189,000

Total variable costs = $570,780

Fixed costs =              $420,000

Total costs =               $990,780

Per unit:

Selling price = $8.55

Variable costs   3.02

Contribution   $5.53

Contribution margin in percentage = $5.53/$8.55 * 100 = 64.7%

Fixed costs on cash basis = FC - Depreciation = $325,500 ($420,000 - $94,500)

Break-even point on a cash basis = $325,5000/0.647 = $503,091

Break-even point in sales dollars = $420,000/0.647 = $647,150

On January 1, a company issued and sold a $399,000, 9%, 10-year bond payable, and received proceeds of $394,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

Answers

Answer:

Cash Interest payable on Bond = $399,000*4.5% = $17,955

Discount to be amortized = ($399,000-$394,000)/20 = $250

Interest expense = $17,955+$250 = $18,205

Date   Journal Entry                                  Debit      Credit            

           Interest Expense                          $18,205

                 Discount on bonds payable                    $250

                 Cash                                                          $17,955

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 32,842 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it

Answers

Answer:

$164,210 decrease

Explanation:

Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it

Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=

Differential cost increase or decrease=$525,472-$361,262

Differential cost increase or decrease=$164,210 decrease

Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease

Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 182,000 Interest expense 12,000 Rent expense 22,000 Consulting revenue 408,000

Answers

Answer:

I don't know thish question

REMAX, a real estate company in Houston, performed an analysis of 500 Houston homes they sold last year. Each home was categorized by initial asking price and number of days the home was listed before it sold. Reference Equations Number of Homes: Initial Asking Priceless or equal than$200,000 Initial Asking Price> $200,000 Total Days Listed Until Sold less or equal than30 125 95 220 Days Listed Until Sold >30 115 165 280 Total 240 260 500 Find P(price > $200,000 and sold less or equal than 30 days). a. 0.3654 b. 0.1900 c. 0.2288 d. 0.4318

Answers

Answer: 0.1900

Explanation:

To find P(price > $200,000 and sold less or equal than 30 days), we have to look at the reference equation table and then look out for the point whereby price is greater than $200000 and sold less or equal than 30 days.

Based on the information given, this will be at a point where we've 95. Since the overall possible outcome is 500, then P(price > $200,000 and sold less or equal than 30 days) will be:

= 95/500

= 0.1900

The correct option is B.

Your opinion is that CSCO has an expected rate of return of 0.15. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of return is 0.115. According to the Capital Asset Pricing Model, this security is

Answers

Answer:

Overpriced

Explanation:

The computation is shown below;

As we know that

Expected rate of return = risk free rate + beta × ( expected market rate of return - risk free rate )

= 0.04 + 1.3 × (0.115 - 0.04)

= 0.1375

As the return of the security is 0.1375  i.e.  more than the expected rate of return i.e. 0.115

Hence, it is overpriced

Using the following selected items from the comparative balance sheet of Kato Company, illustrate horizontal and vertical analysis.
HORIZONTAL VERTICAL
ANALYSIS ANALYSIS
December 31, December 31, 2019 December 31, 2020 December 31, 2019
2020
Accounts
Receivable $720,000 $630,000
Inventory 450,000 360,000

Answers

Answer:

Kato Company

a. Vertical Analysis:

                      December 31, 2020   %       December 31, 2019   %  

Accounts

Receivable                  $720,000   61.5%                  $630,000 63.6%

Inventory                       450,000  38.5%                    360,000  36.4%

Total current assets  $1,170,000   100%                  $990,000  100%

b. Horizontal Analysis:

                      December 31, 2020 Change  December 31, 2019  

Accounts

Receivable                  $720,000     +14.3%                $630,000

Inventory                       450,000     +25%                    360,000

Total current assets  $1,170,000    +18.2%                $990,000

Explanation:

a) Data and Calculations:

                      December 31, 2020    December 31, 2019  

Accounts

Receivable                  $720,000                  $630,000

Inventory                       450,000                    360,000

Total current assets  $1,170,000                  $990,000

                      December 31, 2020   %       December 31, 2019   %  

Accounts

Receivable                  $720,000   61.5%(720/1,170)   $630,000 63.6% (630/990)

Inventory                       450,000  38.5% (450/1,170)    360,000  36.4%(360/990)

Total current assets  $1,170,000   100% (1,170/1,170) $990,000  100% (990/990)

                      December 31, 2020 Change               December 31, 2019  

Accounts

Receivable                  $720,000     +14.3% (720-630)/630      $630,000

Inventory                       450,000     +25% (450-360)/360         360,000

Total current assets  $1,170,000    +18.2%  (1,170-990)/990   $990,000

b) The vertical analysis of Kato's balance sheet items focuses on the relationships between the line items in a single reporting period, while horizontal analysis focuses on multiple reporting periods, reporting on the changes between the accounting periods.

thoughtful is to considerate as​

Answers

Answer:

thoughtful is to considerate as courage is to bravery?

Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours. If it decides to produce 60 barrels of oil, how many bushels of corn can it produce

Answers

Answer: 10 bushels

Explanation:

If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:

= 100 / 100

= 1 work hour

For bushels however, 1 worker hour produces:

= 25 / 100

= 0.25 bushels of corn

If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.

Bushels of corn produced is therefore:

= 40 * 0.25

= 10 bushels

Assume a portfolio is worth $70,000, consisting of X, Y, and cash. Also assume you invested $35,000 in X, $14,000 in Y and the rest in cash, and that X and Y have betas of 1.45 and 0.80 respectively. Calculate the portfolio beta. (Provide numerical answer to 3 decimal places.)

Answers

Answer:

0.885

Explanation:

Beta measures systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio

weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock

Percentage of x = $35,000 / 70,000 = 0.5 = 50%

Percentage of y = $14,000 / 70,000 = 0.2 = 20%

Percentage of cash = 100 - (50 + 20) = 30%

Cash usually have a beta of zero

portfolio beta = (0.5 x 1.45) + (0.2 x 0.8) + (0.3 x 0) =

0.725 + 0.16 + 0 = 0.885

0.725

0.16

A store has the following demand figures for the last four years: Year Demand 1 100 2 150 3 112 4 200 Given a demand forecast for year 2 of 100, a trend forecast for year 2 of 10, an alpha of 0.3, and a beta of 0.2, what is the demand forecast for year 3 using the double exponential smoothing method

Answers

Answer:

125

Explanation:

Calculation to determine the demand forecast for year 3 using the double exponential smoothing method

Smoothed forecast for year 3 = (0.3 ×150) + (0.7 ×100) + 10

Smoothed forecast for year 3 = 45+70+10

Smoothed forecast for year 3 =125

Therefore the demand forecast for year 3 using the double exponential smoothing method will be 125

Dev is a strategist for the firm Stark Industries, which produces high-quality HD movie cameras. This company needs a specific material for a new camera they are developing, which is manufactured in large quantities by a competitor called LENS Inc. However, this material is difficult to trade. Because of this, which of the following is most likely the best strategy for Dev to suggest?
A. Stark industries should acquire LENS
B. Stark industries should enter into co-opetition with LENS
C. Stark industries should form a long term agreement with LENS
D. Stark industries should form a short term agreement with LENS

Answers

Answer: A. Stark industries should acquire LENS

Explanation:

Based on the information given in the question, the best strategy that Dev should suggest is that Stark industries should acquire LENS.

Since Stark Industries require the material from LENS and it's difficult to trade, the best option is to acquire it. The acquisition will make the production of the high-quality HD movie cameras easier.

It should be noted that entering into a competition with LENS is not advisable as that'll lead to the material not gotten. Also, a short or long term agreement isn't advisable as well.

Therefore, the correct option is A.

Suppose the Alaskan king crab harvest is unregulated and any person with a crab boat and some diesel fuel can go offshore, lower a crab pot, and harvest king crab. As a result, this common resource is overused. Which policy choice might produce the socially optimal king crab harvest

Answers

Answer: A. Alaska auctions a limited number of licenses to harvest king crab.

Explanation:

The options include:

A. Alaska auctions a limited number of licenses to harvest king crab.

B. The U.S. and Canadian governments remove trade barriers, which allows for more trade of products like king crab.

C. Alaska removes taxes on diesel fuel, which lowers the price of diesel.

D. Alaska subsidizes the purchase of crab boats.

The socially optimal level of output will be achieved when there's allocative efficiency. It is the level whereby market failure is curtailed.

The policy choice that might produce the socially optimal king crab harvest is for Alaska to auction a limited number of licenses to harvest king crab.

This will help in the reduction at which the resource is overused as there'll be regulation and reduction in the number of person that can harvest king crab.

Crane and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10900 units of ending work in process at 80% completion and 31600 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period?

Answers

Answer:

the equivalent units for the conversion cost is 29,420 units

Explanation:

The computation of the equivalent units for the conversion cost is shown below:

= units completed + ending inventory units

= (31,600 units - 10,900 units) + 80% of 10,900 units

= 20,700 units + 8,720 units

= 29,420 units

hence, the equivalent units for the conversion cost is 29,420 units

Fixed costs are $1500000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?

Answers

Answer:

$6,000,000

Explanation:

Calculation to determine the break-even point in dollars

Using this formula

Break-even point (Dollars)=Fixed costs/(1-Variable costs percentage of unit selling price)

Let plug in the formula

Break-even point (Dollars)=$1,500,000/ (1-.75)

Break-even point (Dollars)=$1,500,000/.25

Break-even point (Dollars)=$6,000,000

Therefore the break-even point in dollars is $6,000,000

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