Answer:
a. Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit. Freeman's attorneys estimate the potential loss will be $4,500,000.
Describe the situation in a note to the financial statements.Since the event is possible but not likely, it should be disclosed in the footnotes of the financial statements.
b. Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous.
Do not disclose.Since this is a frivolous lawsuit, there is no need to disclose it.
c. Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be $75,000.
Record an expense and a liability based on estimated amounts.Since the negative outcome is probable and you were able to quantify your losses, you must record the expense for $75,000 and include the amount as a current liability.
An investor believes that the price of a stock, say IBM's shares, will increase in the next 60 days. If the investor is correct, which combination of the following investment strategies will show a profit in all the choices?
(i) - buy the stock and hold it for 60 days
(ii) - buy a put option
(ii) - sell (write) a call option
(iv) - buy a call option
(v) - sell (write) a put option
A. (i), (ii), and (iii)
B. (ii) (i), (ii), and (iv)
C. (i), (iv), and (v)
D. (ii) and (iii)
Answer:
C. (i), (iv), and (v)
Explanation:
(i) - buy the stock and hold it for 60 days
This step is quite natural since buying at lower price and selling at higher price will give profit .
(iv) - buy a call option
In option we do not buy stocks but we buy the right to buy a stock on a predetermined price . For it we give some price for it . It is called premium . As price of stock goes up the premium goes up . So the option premium acts as price of stock , though it does not involve much money . So it is a less investment option . By selling the option at higher premium we can earn income .
v ) An option seller receives money from the buyer in the beginning . So when price rises , the option will not be exercised by the buyer so the seller receives money and earns income as option premium .
Madrid Company has provided the following data (ignore income taxes): 2018 revenues were $77,500. 2018 net income was $33,900. Dividends declared and paid during 2018 totaled $5,700. Total assets at December 31, 2018 were $217,000. Total stockholders' equity at December 31, 2018 was $123,000. Retained earnings at December 31, 2018 were $83,000. Which of the following is correct? A) Total liabilities at December 31, 2018 were $11,000. B) Common stock at December 31, 2018 was $206,000. C) Retained earnings increased $28,200 during 2018.
Answer:
C. Retained earnings increased $28,200 during 2018.
Explanation:
Total liabilities = Total assets - Total equities
= $217,000 - $123,000
= $94,000
Common stock as at December 31, 2018 = Total equity - Total retained earnings
= $123,000 - $83,000
= $40,000
Retained earnings at year end =
Opening retained earnings + net income - dividend paid
$83,000 = Opening retained earnings + $33,900 - $5,700
$83,000 = Opening retained earnings + $28,200
Opening retained earnings = $54,800
Change in retained earnings = Closing retained earnings - Opening retainer earnings
= $83,000 - $54,800
= $28,200
Therefore, Option 'C' is the correct option.
Answer:
Explanation:wthatthesad
Indicate the effect of each transaction during the month of October 2016 and the balances for the accounting equation after all transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided.
a. Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for capital stock.
b. Paid rent on the office building for the month, $2,000.
c. Received cash for fees earned of $5,000.
d. Purchased equipment, $7,000.
e. Borrowed $20,000 by issuing a note payable.
f. Paid salaries for the month, $1,000.
g. Received cash for fees earned of $8,000.
h. Paid dividends, $3,000.
i. Paid interest on the note, $100.
Assets = Liabilities + Stockholders’ Equity
Cash Equipment Notes Payable Capital Stock Retained Earnings
a.
b.
c.
d.
e.
f.
g.
h.
i.
Bal.
Using the information above, prepare (1) an Income Statement, (2) a Statement of Retained Earnings, (3) a Balance Sheet, and (4) a Statement of Cash Flow for the month of October. Pay special attention to proper formatting for each statement.
Answer:
Test answer
Explanation:
Please delete that answer
Chambliss Corp.'s total assets at the end of last year were $305,000 and its EBIT was 62,500. What was its basic earning power (BEP)
Answer:
20.49%
Explanation:
Chamblis corporation has a total assets of $305,000
The EBIT is $62,500
Therefore the basic earning power can be calculated as follows
= $62,500/$305,000
= 0.2049×100
= 20.49%
Hence the basic earning power is 20.49%
Assume that markets are not efficient and that you will earn the average return of an active investor if you pick stocks. How should you choose between active and passive investments and why
Answer with Explanation:
If the markets are not efficient then there higher probability that the investor can earn from the price fluctuations because the markets are not valuation is different. The investor would be spending money on gaining the benefit of price fluctuations which will be for short term only and he will be acting in time to continuously earn money from the fluctuation.
The investors and financial institutions will master the quantitative analysis and qualitative analysis of the price changes to guess where will be the change going to happen and we must take advantage of it.
The passive investment is the investment which the management intents to hold for a longer period to benefit from it. If the markets are not efficient then it is useless to hold an passive investment. Rather holding a passive investment it would be better to hold an active investment which benefit more as we will be beating the market by price differences. The possession of passive investment is less expensive as apposed to active investments because less fee is charged by the broker. Active investment would be risky investment because we will continuously gaining and loosing money.
The financial advisers opt to creating a portfolio of active and passive investments to lower the unsystematic risk and increase the gain limit to average return.
The resource based perspective indicates that firms exhibit different performances within the same industry because
Answer: c) some firms have superior resources
Explanation:
The resource based perspective aims to show that in an industry a company can make above average returns due to the superior resources it possesses that enables it to maintain a competitive advantage.
Some of these resources include people skills and technical know-how. For instance, a company might have better skilled computer programmers than others in the industry which will enable them produce better applications that they can use to corner the market.
which financial statement would best display a company's plant, property, and equipmnt used everyday
Answer:
Balance sheet
Explanation:
Balance sheet is referred to as the statement of assets and liabilities. Property plant and equipment are shown in balance sheet with a schedule of addition, deletion and depreciation is attached to it. Hence, the financial statement that would best display a company's plant, property and equipment used everyday is the Balance sheet.
Give at least one example that you believe demonstrates when the cost of government actions outweighs the benefits.
Answer: The creation of a government set price for gasoline by ni government.
Explanation:
In 1970 president Nixon inteoduced a soft artificial price ceiling on gasoline in the United States. This was as a result of the OPEC crisis of 1970s. It is a good example of scenerios where the cost of government action outweighs the benefits. this was due to the creation of the government-set price which would cause the quantity demanded to be more than the quantity supplied because gasoline was cheaper now.
A major expenditure made to equipment that extends its useful life beyond the original estimate is journalized by
Answer:
Debit : Equipment and Credit : Cash
Explanation:
Major expenditure made to equipment that extends its useful life meets the definition and recognition criteria of assets.
The definition and recognition criteria of assets read as follows in the conceptual framework : Definition - An Asset is an economic resource that is controlled by the entity as a result of a past event from which economic benefits are expected to flow into the entity.
The major expenditure, will ensure further flow of economic benefits into the entity beyond the estimated useful life. Hence the cost is capitalized, included in the cost of the asset.
Lang Warehouses borrowed $131,300 from a bank and signed a note requiring 9 annual payments of $15,328 beginning one year from the date of the agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:Determine the interest rate implicit in this agreement. (Round interest rate to 1 decimal place.)Solve for iPresent value: n = i %
Annuity payment
Answer:
The interest rate implicit in this agreement is 1%
Explanation:
Present Value = $131,300
n = 9
i = ?
Annuity Payment = $15,328
Use the following formula to calculate the interest rate
PV of Annuity payment = Annuity Payment x ( 1 - ( 1 + r )^-n / r
$131,300 = $15,328 x ( 1 - ( 1 + r )^-9 / r
$131,300 / $15,328 = ( 1 - ( 1 + r )^-9 / r
8.5660 = ( 1 - ( 1 + r )^-9 / r
using Annuity Table the 8.5662 annuity factor for 9 payments shows under 1% interest rate.
So, the answer is 1%
At a=0.02 , is there enough evidence to support the tax collector's claim that the means are different?
Full question attached
Answer:
There is enough evidence to claim that the means are different
Explanation:
Please find explanation attached: we've used the the two sample t test to test our hypothesis to reach conclusion
Which accounting principle states that all transactions have two aspects: debit and credit?
A: historical cost
B: matching
C: dual-aspect
D: accrual
E: business entity
Answer:
The answer is c
Explanation:
Answer:
The answer is c
Explanation:
Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2020, what is his average tax rate (rounded)
Answer: $18,079.50
Explanation:
The tax is to be paid on the $100,000 alone as the $10,000 is municipal interest and is therefore tax exempt.
Taxes on the $100,000 in 2020;
= 14,605.50 + ( 24% of any amount above 85,525)
= 14,605.50 + ( 24% * ( 100,000 - 85,525))
= $18,079.50
Selected current year company information follows: Net income $ 17,753 Net sales 730,855 Total liabilities, beginning-year 101,932 Total liabilities, end-of-year 121,201 Total stockholders' equity, beginning-year 216,935 Total stockholders' equity, end-of-year 148,851 The return on total assets is
Answer:
6.03%
Explanation:
Calculation for the return on total assets
First step will be to find the assets at the beginning using this formula
Beginning year Assets =Beginning Total liabilities + Beginning Stockholders' equity
Let plug in the formula
Beginning year Assets=$101,932 + $216,935
Beginning year Assets=$318,867
Second step is to find the end of the year asset using this formula
End of the year assets = Ending Total liabilities + Ending Stockholders' equity
Let plug in the formula
End of the year assets=$121,201 + $148,851
End of the year assets = $270,052
Last step is to calculate for the return on total assets using this formula
Return on total assets = Net income/Average of total assets,
Let find the Total asset averages
Using this formula
Total asset averages=(Beginning year Assets+End of the year assets)/2
Let plug in the formula
Total asset averages($318,867 + $270,052)/2 Total asset averages=$588,919/2
Total asset averages= $294,459.50
Hence,
Return on total assets = Net income/Average of total assets
Return on total assets=$ 17,753/294,459.50
Return on total assets=0.0603
Return on total assets=6.03%
Therefore the return on total assets will be 6.03%
Ivanhoe Inc. issues $240,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2020.
Answer:
Dr Cash 230,400
Dr Premium on Bonds Payable 9,600
Cr Bonds payable 240,000
Explanation:
Preparation of the journal entry to record the sale of bonds
Based on thr information given we were told that Ivanhoe Inc. issues the amount of $240,000 with bonds at 96 which means that the journal entry to record the transaction will be:
Dr Cash 230,400
(240,000×96%)
Dr Premium on Bonds Payable 9,600
Cr Bonds payable 240,000
Suppose the government is considering penalizing airlines $27,500 per passenger each time passengers are made to remain on the plane on the tarmac for more than three hours before a flight. True or False: The threat of this fine incentivizes airlines to cancel fewer flights than before.
Answer:
True
Explanation:
If this $27,500 fine is actually per passenger, it could greatly incentivize airlines to cancel fewer flights than before. Consider that, most airline tickets are far lower than $27,500, so if airlines are paying fines worth many times more than they actually collect per individual tickets, they will incure great losses.
A produce distributor uses 783 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 32 percent of the purchase price per crate. Ordering costs are $31. Currently the manager orders once a month.How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)
Answer:
Annual Savings will be ;
Ordering Cost = $2,993.88
Holding Cost = $661.78
Explanation:
First Calculate the Economic Order Quantity (EOQ)
EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit
= √ ((2 × 783× 12 × $31) / ($11 × 32%))
= 407
Note : Currently the firm orders at 783 crates per month
Savings in Ordering Cost will be :
Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ
= (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)
= (9396/783 × $31) - (9396/407 × $31)
= $2,993.88
Savings in Holding Cost will be :
Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit
= (783 - 407) / 2 × ($11 × 32%)
= $661.78
The corridor is the ________________ section of the ______________________ curve of reserves in the federal funds market.
The corridor is the vertical section of the supply curve of reserves in the federal funds market.
What is market?The term “market” refers to the exchange of commodities and services. A market mainly involves the buyer and seller. There are many types of markets, such as perfect competition, monopoly markets, monopolistic competition, and oligopoly markets. The share market was the important market to sale the stocks.
The corridor is the vertical section between the kinks, or simply the vertical segment of the supply curve. The federal funds rate tends to move other short-term borrowing costs, which affects the cost of borrowing for companies and consumers, the total quantity of credit and money in the economy, employment, and inflation of the market.
As a result, the corridor is the vertical section of the supply curve of reserves in the federal funds market.
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Which set of headings is the most helpful to a business reader who wishes to grasp the main ideas of a report quickly?
Answer:
b.Common Ethical Lapses Among Office Workers
Economic Losses From Unethical Behavior
Ethical Theories Invoked by Offenders
Punitive Measures
Possible Remedies
Explanation:
For a reader who hopes to grasp the main ideas of a report quickly, the report would have to be structured in such a way that the different sections follow each other sequentially so the progression of the report is picked up quickly.
The different sections should also be brief so that the reader can scan through them quickly and get the message.
Option B contains section topics in sequential order which show the reader that the point of the report is unethical behavior by employees. Section topics are also brief and to the point so the reader understands quickly.
Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation
Answer:
During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:
I. Output: During Recession, production output reduces. But, during expansion, product output rises with rising income, employment, and even stable inflation.
II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.
III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises. It reduces when the economy enters a recession.
Explanation:
Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation. It usually cascades between the spectrum of expansion and recession. This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.
Economic research "consistently" finds that immigration negatively impacts the average American wage. "false"
Answer: The given statement is false.
Explanation:
Immigrants give a boost to the average wages of Americans by increasing the overall productivity and help in investment. Immigrant workers are more advanced in skill sets and knowledge which helps the native Americans to improve their productivity. This process has boosted the investment which in turn increased the demand for labor and increased the pressure on improving wages of labor.
Which of the following is least likely to be a source of disruption that results in less than the desired output in a high-volume system?
a. accidents
b. worker absences
c. demand variability
d. material shortages
e. equipment failures
Answer: c. demand variability
Explanation:
Demand variability refers to any fluctuations in the demand of a good or service by consumers so it is on the demand side of goods and services.
The question in asking what can affect output is asking for factors in the supply side of the good such as workplace accidents and worker absences causing labor to reduce the amount of output produced as well as material shortages and equipment failure doing the same.
Demand variability is therefore least likely to be a source of disruption that results in less than the desired output in a high-volume system.
Brickhouse is expected to pay a dividend of $3.15 and $2.46 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.9 percent. What is the stock price today if the required return is 11.3 percent?
Answer: $32.70
Explanation:
According to the dividend discount model, the value of the stock today is the present value of the dividends to be paid plus the present value of the value of the dividend from when the company starts maintaining a stable growth rate which in this question in year 2.
= (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
Value at year 2 = Year 3 dividend / ( required return - growth rate)
= ( Year 2 dividend * (1 + g)) / ( required return - growth rate)
= (2.46* ( 1 + 0.039)) / ( 0.113 - 0.039)
= $34.54
Value today = (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))
= 3.15/1.113 + 2.46/1.113² + 34.54/1.113²
= 2.83 + 1.99 + 27.88
= $32.70
The distinction between fundamental and particular risks is important because a. normally only particular risks are insurable. b. whether a risk is fundamental or particular may determine how society will deal with it. c. none of the above. d. fudamental risks are a souce of gain to society.
Answer:
b. whether a risk is fundamental or particular may determine how society will deal with it.
Explanation:
The fundamental risk is the risk that impacts the larger number of people or we can say the population
While the particular risk is the risk that contains the losses of personal with respect to the origin and their effects. Here it impacts an individual or smaller number of people
So the distinction between both risk could be figured out by seeing how society would deal with it
Hence, the correct option is b.
A firm has a current ratio of 1.4 and a quick ratio of .9. Given this, you know for certain that the firm:
Had a positive Net working Capital
A firm has a current ratio of 1.4 and a quick ratio of has positive net working capital. Thus, option (e) is correct.
What is quick ratio?The fast ratio reflects how successfully a corporation can pay its short-term debts using only its most liquid assets. The ratio is significant because it indicates if the business will run out of cash to internal management and outside investors.
A healthy current ratio somewhere between 1.2 and 2, indicating that the company has twice as many current assets as liabilities to cover its debts. A suitable current ratio in most sectors is between 1.5 and 2. A ratio smaller than one implies that a company's liabilities due within a year or less exceed its assets. A ratio smaller than one implies that a firm's liabilities due within a year or less exceed its assets.
As a result, the firm has a current ratio of 1.4 and a quick ratio of has positive net working capital. Therefore, option (e) is correct.
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Your question is incomplete, but most probably the full question was.
A. pays cash for its inventory.
B. has more than half its current assets invested in inventory.
C. has more cash than inventory.
D. has more current liabilities than it does current assets.
E. has positive net working capital.
Lloyd Inc. had sales of $200,000, a net income of //415,000, and the following balance sheet:
Cash $10,000 Accounts Payable $30,000
Receivables 50,000 Notes Payable To Bank 20,000
Inventories 150,000 Total Current Liabilities $50,000
Total Current Assets $210,000 Long-Term Debt 50,000
Net Fixed Assets 90,000 Common Equity 200,000
Total Assets $300,000 Total Liabilities And Equity $300,000
The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? What will be the firm’s new quick ratio?
Answer:
The firm's new quick ratio is 2.9
Explanation:
The current ratio is calculated as
Current ratio = Current assets / Current liabilities
2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)
2.5 = ($10,000 + $50,000 + Inventories) / $50,000
$60,000 + inventories = $125,000
Inventories = $65,000
Therefore, $85,000 worth of inventories were sold off.
If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.
Hence, the common equity amounts to $115,000
Calculating the ROE before the inventory is sold off:
ROE = Net income / Stockholder's equity
= $15,000 / $200,000
= 0.075 or 7.5%
Calculating the ROE after selling off the inventory:
ROE = $15,000 / $115,000
= 0.13 or 13%
The firm's new quick ratio is
Quick ratio = (Current assets - Inventories) / Current liabilities
= ($210,000 - $65,000) / $50,000
= 2.9
The techniques used by systems analysts to identify or extract system problems and solution requirements are known as
Answer: requirements discovery
Explanation:
The techniques used by systems analysts to identify or extract system problems and solution requirements are known as requirements discovery.
A requirements discovery is simply defined as the process and tools that are typically used to identify the system requirements for the users of a system that has been proposed.
A system requirement helps to describe the desires and needs for an application or a system. The system requirement describes the features, functions, and constraints.
Which of the following transfers are available in getting money from individual savers to a business firm?
a. Direct transfers of money from savers to a business firm in exchange for the business firm’s securities
b. Indirect transfers through an investment banking firm
c. Indirect transfers through a financial intermediary
d. All of the choices are correct.
Answer: d. All of the choices are correct.
Explanation:
The funds that are provided by individual savers to firms for expansion are a very integral part of the financial system as they allow for companies to expand thus increase the Economy's productivity.
Some ways they can get their funds to business firms include;
Direct transfers of money when the company offers its stocks or bonds to directly individual savers who will then buy it from them with the money paid going towards the welfare of the business. Indirect transfers through an investment banking firm who act as intermediaries in stock and bond issues. Individual savers will communicate with the investment banks and then buy the stock and bonds from them. Indirect transfers through a financial intermediary can occur when savers pull their funds together in an institution such as a bank or mutual fund that will then invest in businesses for them.Target's liabilities exceed owners' equity.
a) true
b) false
Answer: True
Explanation:
As of February 2020, Target Corp's total liabilities were listed to be $30,946,000,000 while its shareholder equity was significantly lower at $11,833,000,000.
Target Corp therefore does indeed have liabilities that exceed owners equity and by a substantial amount. This has also been the trend since at least 2015.
A furniture manucturer specializes in wood tables. The tables sell for per unit and incur per unit in variable costs. The company has in fixed costs per month. The company desires to earn an operating profit of per month.
1. Calculate the required sales in units to earn the target profit using the equation method.
2. Calculate the required sales in units to earn the target profit using the contribution margin method.
3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.
4. Calculate the required sales in units to break even using the contribution margin method.
Answer:
1. 100 units
2. 300 units
3. $30,000
4. 100 units
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6000 in fixed costs per month. The company desires to earn an operating profit of $12000 per month.
1. Calculate the required sales in units to earn the target profit using the equation method.
2. Calculate the required sales in units to earn the target profit using the contribution margin method.
3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.
4. Calculate the required sales in units to break even using the contribution margin method.
The explanation to the answers is now given as follows:
1. Calculate the required sales in units to earn the target profit using the equation method.
This can be calculated using the following formula:
Target profit = Net sales revenue - Total variable cost - Total fixed cost ....... (1)
Where, by letting q denotes quantity sold;
Target profit = $12,000 per month
Net sales revenue = Selling price per unit * quantity sold = $100 * q = 100q
Total variable cost = Variable cost per unit * quantity sold = $40 * q = 40q
Total fixed cost = $6,000 per month
Substituting the values into equation (1) and solve for q, we have:
$12,000 = $100q - $40q - $6,000
$12,000 - $6,000 = $60q
$6,000 = $60q
q = $6,000 / $60
q = 100 units.
2. Calculate the required sales in units to earn the target profit using the contribution margin method.
Contribution margin per unit = Selling price per unit – Variable cost per unit = $100 - $40 = $60
Required sales in units to earn the target profit = (Fixed cost + Target profit) / Contribution margin per unit = ($6,000 + $12,000) / $60 = $18,000 / $60 = 300 units
3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.
Contribution margin ratio = Contribution margin / Selling price per unit = $60 / $100 = 0.60, or 60%
Required sales in dollars to earn the target profit = (Fixed cost + Target profit) / Contribution margin ratio = ($6,000 + $12,000) / 0.60 = $18,000 / 0.60 = $30,000
4. Calculate the required sales in units to break even using the contribution margin method.
Sales in units to break even = Fixed cost / Contribution margin per unit = $6,000 / $60 = 100 units