Answer:
The question you have provided is missing important information needed for the calculation of break even point.
However step by step approach for the calculation of the break even point is given below :
Understand what break even point is :
Break even point is the level of operation where a Company neither makes a profit nor a loss.
Break even point in units calculation :
<em>Break even point in units calculation = Fixed Costs for the Period ÷ Contribution per unit</em>
Where, <em>Contribution per unit = Selling Price per Unit less Variable Cost (Manufacturing and Non Manufacturing) per unit</em>
Conclusion :
At Break Even Point level,Total Contribution will equal Total Fixed Cost (thus no profit nor loss)
The only data the question provided is :
Fixec Cost - $305,000
<span>To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask?
What can go wrong? </span>What are the alternatives? <span>What is the likely return? </span>Is the risk worth the return?
<span>When assessing a situation where there could be risk to generate a return, make sure that all questions regarding the return vs the risk are asked. It is important to weigh out all options and make the best decision regarding the purchase. The four questions above are practical and important when assessing risk. </span>
The exchange rate for converting the druba to the troon is1 troon = 1.5 druba.
<h3><u>
Explanation:</u></h3>
The amount in dollar that is obtained as the exchange rate in between two different currencies refers to the par value. This par value of currency depends on the exchange rates. Say for an instance, one British pound has the value of three U.S dollars and if an individual has 100 pounds, then $300 will be the par value in dollars.
The currency devaluations up to 10 percentage were allowed under the Bretton Woods system. This can also be done only getting approvals form the International Monetary Funds. When considering gold, the total amount of currency that is essential in purchasing one ounce of gold is known as gold par value. The exchange rate for converting the druba to the troon is 1 troon = 1.5 druba.
The statement that is true here is:
c.
Max has made a counter-offer.
Explanation:
Max here is giving another offer on the above of the offer that is given by Allie the travel agent.
He is trying to bargain himself into a better position in the deal and then to seal it as he can see an obvious profit in the game.
Thus, this counter deal that is offered puts both parties in a situation of advantage and either of the two can make things final or obstruct the deal spending on if they would want this deal to take place on the given terms or would want better terms.