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andreev551 [17]
3 years ago
7

Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to mak

e. During March, 1,000 drives were sold. Fixed costs for March were $5.60 per unit for a total of $5,600 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene?
Business
1 answer:
kodGreya [7K]3 years ago
4 0

Answer:

The break even level of units per month fall by 16 units.

Explanation:

The current breakeven units per month are,

Break even in units = 5600 / (20 - 6)  

Break even in units-March = 400 Units

The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.

The new variable costs will be 6 * 0.9 = $5.4

Assuming everything else remains constant,

The new break even in units per month = 5600 / (20 - 5.4)

New break even in units = 383.56 rounded off to 384 units

As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.

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Answer:

The slope of the total output curve at the relevant point.

Explanation:

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Mathematically, marginal physical product of labor is given by the formula;

Marginal physical product of labor = ΔY/ΔL

Where, ΔY is the change in total physical output.

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The marginal physical product of labor is the slope of the total output curve at the relevant point.

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Answer:

D) is not acceptable because such a guarantee would cause a conflict of interest pertaining to the IA's fiduciary duty to each client

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The members of the North American Securities Administrators Association (NASAA) must follow their Model Rule which prohibits investment adviser firms from guaranteeing investment results, in other words they cannot guarantee a minimum profit.

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Answer:

The correct option is C.

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