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kherson [118]
3 years ago
9

Walters Corporation sells radios for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling pr

ice. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Business
2 answers:
Elena-2011 [213]3 years ago
6 0

Answer:

26,000

Explanation:

Given that,

Selling price = $50 per unit

Fixed costs = $525,000

Variable costs:

= 60% of the selling price

= 0.6 × $50

= $30 per unit

New fixed cost:

= $525,000 + $125,000

= $650,000

New variable costs:

= 50% of the selling price

= 0.5 × $50

= $25 per unit

Contribution margin per unit:

= Selling price - Variable cost

= $50 - $25

= $25

New break-even point in units:

= New fixed cost ÷ Contribution margin per unit

= $650,000 ÷ $25

= 26,000

anyanavicka [17]3 years ago
3 0

Answer:

26,000 units  

Explanation:

The computation of the new break even point in units is shown below:

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Fixed cost = $525,000 + $125,000 = $650,000

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $50 - $25

= $25

So, the break even point in units is

= $650,000 ÷ $25

= 26,000 units  

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Answer:

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Explanation:

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Your stock will be valued in $20,838.

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3 years ago
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On July 9, Mifflin Company receives a $10,400, 90-day, 8% note from customer Payton Summers as payment on account. What entry sh
ruslelena [56]

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Explanation:

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Which fiscal policy would be the most contractionary? 
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B. A $50 billion increase in governmen
Elena L [17]

Answer: Option (C) is correct.

Explanation:

Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.

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3 years ago
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Ierofanga [76]
The answer would be C.
6 0
3 years ago
Read 2 more answers
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