1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetradugi [14.3K]
3 years ago
11

If fixed costs are $400,000 and the unit contribution margin is $20, how many units must be sold in order to realize an operatin

g income of $250,000
Business
1 answer:
Mariulka [41]3 years ago
8 0

Answer:

32,500 units must be sold to realize an operating income of $250,000.

Explanation:

a) Calculations:

Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.

To break-even, the company needs to sell the following quantity,

Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.

To achieve a target profit, the company needs to sell the following quantity,

Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.

b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs.  From the analysis, a company can also determine the units to sell in order to realize a target profit.  This helps a lot in decision making.

You might be interested in
The parameters of a waiting line system include all of the following except: a. service time.b. cost of capacity.c. queue discip
natka813 [3]

Answer:

b. cost of capacity

Explanation:

A waiting line system can be defined as the number of customers (people) or items (products) that are waiting to receive a service or cleared for the service taken i.e to successfully complete a transaction.

Hence, the parameters of a waiting line system include all of the following;

a. Service time: this is simply the total time it takes to complete a transaction process successfully.

b. Queue discipline: it is uses rules such as first-in first-out.

c. Arrival rates: the time each customer arrives for the service.

7 0
3 years ago
What condition is necessary for a fiat money system to work? customers with checking accounts cannot earn interest on those acco
pashok25 [27]
<span>What condition is necessary for a fiat money system to work? The government must control the money supply. Fiat money is not physical money like bills or coins, fiat money solely exists because if supply and demand of a good or service. This is a currency that the government has declared legal but it is not backed by any physical commodity. Due to that, the government has to be in control of the money supply for the fiat system to work. </span>
7 0
3 years ago
Read 2 more answers
Jimmy, the marketing manager for an automobile manufacturer, observes frequent conflicts between two of his subordinates, Trent
Alina [70]

it is the person analysis

reason-

a person analysis is the analysis in whch we study the behaviour of the employees it helps us to identify the employees who lacks skills or need training.
8 0
2 years ago
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for
Pani-rosa [81]

Answer: See explanation

Explanation:

The general journal entries necessary to adjust the interest accounts at December 31 will be:

1. December 31:

Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102

Credit: Interest payable = $102

(To accrue interest expenses for the note issued on November 10).

2. December 31:

Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120

Credit: Interest payable = $120

(To accrue interest expenses for the note issued on December 1)

3. December 31:

Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67

Credit: Interest payable = $36.67

(To accrue interest expenses for the note issued on December 20).

3 0
2 years ago
The _____ was established by Congress to encourage American firms to focus on quality improvement in order to improve their glob
V125BC [204]

Answer:

The correct answer is: Baldridge Performance Excellence Program.

Explanation:

To begin with, the <em>"Baldridge Performance Excellence Program"</em> is the name given to the program that was established by the United States of America in order to encourage the companies of the country to improve their performance regarding the economy and the globalization that was happening at the time the program was created. It receives its name from the ex secretary of commerce Malcom Baldridge and the award gives to the company selected the recognition of having performance excellence in the its field  

5 0
3 years ago
Other questions:
  • The following data are given for Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard
    12·1 answer
  • In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching me
    9·1 answer
  • Which family deployability checklist will prompt you to make sure the arrangements for preparation of your family's tax return?
    15·1 answer
  • Pauline Davis’s charge account statement shows an unpaid balance of $225. The monthly finance is 1.25% of an unpaid balance. Wha
    15·1 answer
  • This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 i
    14·1 answer
  • A firm that uses a ________ strategy relies on economic theory and a mathematical model to capture all the factors required to e
    9·2 answers
  • Monetary policy: a.must be described in terms of money-supply targets.b.must be described in terms of interest-rate targets.c.ca
    13·1 answer
  • Which of the following statements is false?
    8·1 answer
  • The Big Black Bird Company​ (BBBC) has a large order for special​ plastic-lined military uniforms to be used in an urgent milita
    11·1 answer
  • There are four basic sources that multinational companies (MNCs) can tap for positions. These are: A. host-country nationals, th
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!