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zysi [14]
1 year ago
5

You own a small manufacturing business that produces widgets. You have spent $400,000 acquiring the fixed assets you need to pro

duce widgets. Each widget costs you $3 to make and they sell for $25 each, so your variable cost is 12% of the overall revenue. At your current level of operating leverage, how many widgets must you sell to break even
Business
1 answer:
anygoal [31]1 year ago
4 0

At the current level of operating leverage, the small manufacturing business needs to sell <u>18,182 units</u> of widgets to break even.

<h3>What is the break-even point?</h3>

The break-even point is the level of production and sales required so that the entity does not incur any losses or earn any profits.

At the break-even point, the total costs (fixed and variable) equal the sales revenue.

<h3>Data and Calculations:</h3>

Fixed assets = $400,000

Production cost of each widget = $3

Selling price per unit = $25

Variable cost per unit = $3 ($25 x 12%)

Contribution margin per unit = $22 ($25 - $3)

Break-even point in units = Fixed Costs/Contribution margin per unit

= 18,182 units ($400,000/$22)

Thus, at the current level of operating leverage, the small manufacturing business needs to sell <u>18,182 units</u> of widgets to break even.

Learn more about break-even analysis at brainly.com/question/21137380

#SPJ1

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The plaintiff explains that she acted with the value of integrity when she started her own cleaning business. What did she claim
Anit [1.1K]

Answer:

Called the clients and cancelled jobs

Explanation:

If the plaintiff worked for the defendant and left to set up her own cleaning business, then she will most likely be bound by a non-compete clause.

So if she is saying she acted with the value of integrity, then she would called any of the defendant's clients and cancelled jobs in order to respect the non-compete clause.

However after sometime the non-compete clause is no longer binding.

3 0
3 years ago
Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk t
Finger [1]

Answer:

Least Market Risk - Fitcom Corp. as it has the lowest beta.

Explanation:

According to the given table, as we can see that there are 4 types of stock, 4 investment, 4 beta, and 4 standard deviations. Now, as per the requirement of the question the least market risk to the portfolio of the stock is Fitcom Corp. as it has the lowest beta that is 0.50.

Therefore the right answer is Fitcom Corp.

7 0
3 years ago
Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______.
sweet-ann [11.9K]

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's internal resources and external environment.

<h3>Who are Strategic leaders?</h3>

The center of attention for organizational learning is on strategic leaders. They encourage an environment of inquiry and look for lessons in both successful and bad results.

Organizational structure, resource allocation, and strategic vision are all functions of strategic leaders. Strategic leaders deal with extremely complex challenges in an uncertain environment while also being influenced by external events and organizations.

Process simplification, increased strategic productivity, and innovation are all benefits of strategic leadership. Employees may be independent, productive, and push for new ideas under this leadership. Programs for incentives and rewards are essential for strategic leaders. They support staff members in achieving their strategic objectives.

To know more about strategic leaders refer to:brainly.com/question/15171930

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8 0
2 years ago
Morales Company sells $320,000 of its receivables to Instant Factors, Inc. Instant Factors assesses a finance charge of 3% of th
bazaltina [42]

Answer:

Dr Cash $310,400

Dr Factoring expense$9,600

Cr Account receivable $320,000

Explanation:

Preparation of the journal entry to record the sale of the receivables on Morales Company's books.

Dr Cash $310,400

($320,000-$9,600)

Dr Factoring expense$9,600

($320,000*3%)

Cr Account receivable $320,000

(Being to record the sale of the receivables on Morales Company's books

7 0
3 years ago
The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are as follows: St
svetoff [14.1K]

Answer:

$2,250 favorable

Explanation:

The direct material price variance is computed as;

= ( Standard price - Actual price ) × Actual quantity

Given that;

Standard price = $8.75

Actual price = $8

Actual quantity = 3,000 units

Direct material price variance

= ( $8.75 - $8 ) × 3,000

= ( $0.75 ) × 3,000

= $2,250 favorable

6 0
2 years ago
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