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cupoosta [38]
2 years ago
11

If a company decreases its selling price by $4 per unit, due to a decrease in its direct material cost of $4 per unit, the break

-even point in units will?
Business
1 answer:
MariettaO [177]2 years ago
7 0

There would no change in the break-even point .

What is breakeven point?

It is the point at which the firm makes zero profit, I mean the number of units the firm needs to sell in order to cover all costs, such that revenue is the same as total costs.

Initially, breakeven point is the fixed costs divided by the contribution margin per unit(i.e. selling price minus variable cost per unit)

Let assume fixed cost is $100,000

Selling price=$40

variable cost=$20

Initial breakeven point=$100,000/($40-$20)

Initial breakeven point=5,000 units

Now selling price and variable cost would reduce by $4 each

breakeven point now=$100,000/($36-$16)

breakeven point now=5,000 units

Overall, the breakeven point would remain the same before the reduction in selling price and variable cost as well as after the reduction.

Read more on breakeven point on:brainly.com/question/9212451

#SPJ1

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When responding to behavioral interview questions, you should briefly explain the situation and describe the problem or task, yo
Anettt [7]

Answer:

The correct answer is the first option: True.

Explanation:

To begin with, <em>behavioral interview question</em> is the name that receives the type of questions done by an employer in an interview job with the <em>focus on the interviewee's past and experience</em>. Moreover, the principle purpose of this type of questions it to understand and <em>comprehend how the person responsed in certain situations and how he handled those situations</em>. Therefore that it is understandable that when a person is asked these type of questions then he must try to briefly explain what the situation was and how he managed to handle the problem and main task to resolve at the time.

6 0
3 years ago
Marielle Machinery Works forecasts the following cash flows on a project under consid- eration. It uses the internal rate of ret
ivann1987 [24]

Answer:

a. Project’s IRR is 18.28%

b. Project should be accepted and pursued because it IRR is higher than the required rate of return.

Explanation:

Cash flows are missing a similar question is attached and followoing answer is made accordingly.

Year                           0             1           2              3             NPV

Cash flows          -$10,000    $0     $7,500    $8,500

PV @ 10%            -$10,000    $0     $6,198     $6,386    =   $2,584

PV @5%               -$10,000    $0     $6,802     $7,342    =   $4,144

IRR = 0.05 + ( 4,144 / (4,144-2,584)) x (0.1-0.05) = 18.28%

7 0
3 years ago
A manufacturer of brand A jeans has daily production costs of Upper C equals 0.3 x squared minus 120 x plus 12 comma 585​, where
makvit [3.9K]

Answer:

a. 200 jeans should be produced each day in order to minimize​ costs.

b. The minimum daily​ cost is $108,585

Explanation:

a. How many jeans should be produced each day in order to minimize​ costs?

Given C = 0.3x^2 - 120x + 120,585 ........................... (1)

Cost is minimized when MC = C' = 0

To obtain MC, equation (1) is differentiate with respect to x as follows:

dC/dx = MC = C' = 0.6x - 120 = 0 ............................... (2)

From equation (2), we can now solve for x follows:

0.6x - 120 = 0

0.6x = 120

x = 120 ÷ 0.6

x = 200

Therefore, 200 jeans should be produced each day in order to minimize​ costs.

b. What is the minimum daily​ cost?

Substitute 200 for x in equation (1) to have:

C = 0.3(200^2) - 120(200) + 120,585

   = 12,000 - 24,000 + 120,585

C = $108,585

Therefore, the minimum daily​ cost is $108,585.

8 0
3 years ago
Read 2 more answers
________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want thr
Thepotemich [5.8K]

Answer:

The correct answer is C

Explanation:

Marketing is the one which is concerned with the management as well as the study of exchange relationship. It is the process of business of establishing the relationship with the customers through exchange the value.

As it is used to attract the customers, the primary components of business commerce and management.

So, marketing is the process of managerial and social through which the groups and the individuals obtain what they want and need by exchanging and creating products and value with others.

3 0
3 years ago
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per
Tanzania [10]

Answer:

50%

Explanation:

The formula and the computation of the contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

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

= $40 per unit - $20 per unit

= $20 per unit

So, the CM ratio is

= ($20 per unit) ÷ ($40 per unit) × 100

= 50%

8 0
3 years ago
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