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OLEGan [10]
3 years ago
13

A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout fr

om a simulated mountain stream or simply asking the waiter to net the trout for them. Operating the stream would require $10,600 in fixed costs per year. Variable costs are estimated to be $6.70 per trout. The firm wants to break even if 800 trout dinners are sold per year. What should be the price of the new item
Business
2 answers:
valentinak56 [21]3 years ago
4 0

Answer:

$19.95

Explanation:

Breakeven is where when total Cost = Total Revenue,

Let Selling Price = X

Total Revenue = Total cost

X*800 = 10,600+6.70*800

800x = 15960

Hence, selling Price(X) = 15960/800 = $ 19.95

Ilya [14]3 years ago
3 0

Answer:

Selling price = $19.95

Explanation:

<em>The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total fixed costs.</em>

<em>To calculate the break even point in a multi product scenario, we use the formula below:</em>

Break-even point (units)= Fixed cost for the period / contribution per unit

800 = 10,600/ y

<em>Cross multiplying</em>

800y = 10,600

800y  = 10,600

800 y = 10,600

y = 10,600/800

y= 13.25

Selling price = contribution + variable cost

= 13.25 + 6.70 = $19.95

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The Reynolds Corporation buys from its suppliers on terms of 3/13, net 35. Reynolds has not been utilizing the discounts offered
grin007 [14]

Answer:

Explanation:

A)

cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1

cost of not taking a cash discount = 66.5%

B)

Effective rate of interest if the company borrows from the bank = (17/(100-12))

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3 0
3 years ago
An econmic model should capture
insens350 [35]

Answer:

The right answer is C.

Explanation:

In an economic model, economic processes of a set of related variables are represented, they present arguments to justify economic policy at the national level, influence business strategies and provide economic advice to households.

Helping the correct allocation of resources both public and business management.

8 0
3 years ago
Kane Manufacturing has a division that produces two models of fireplace grates, x units of model A and y units of model B. To pr
Mademuasel [1]

Answer:

The company will produce the requested 150 units of A for a gain of 300 dollars

and then use his resourses to produce B yielding a gain of 90 dollars

total of 390 profit

Explanation:

The company will produce at least 150 units of product A therefore:

lbs used: 150 x 3 = 450

minutes of labor used 150 x 8 = 1,200

leaving available:

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