Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
Answer:
Financial accounting standard-setting in the United States can be described as a social process which reflects political actions of various user groups as well as a product of research and logic.Hence,option A is correct.
Explanation:
The financial accounting standard-setting in the U.S. is heavily rule-based.By rule-based,I mean there is a strong government interest in the way corporations report their financial performance to various stakeholder groups.
Serbanes-Oxley Act is a strong indication that the political class is keeping a tab on the financial reporting framework and results of the various companies operating in the different sectors of the economy.
Answer:
The Money supply will decrease by $4,500
Explanation:
What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.
Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.
Hence, you can easily calculate the effect by using the simple money multiplier.
Answer: Mikey's mom will buy 80 tablespoons each of cereal and juice. Option C.
Explanation:
We will get the correct option by calculating each option thus:
Cereal = 4 cents per tablespoon.
Juice = 6 cents per tablespoon.
Option A. 40 tablespoons of cereal and 75 tablespoons of juice.
40 tablespoons of cereal X 4 cents = 160 cents = $1.6
75 tablespoons of juice X 6 cents = 450 cents = $4.5
Option A gives a total of $6.1 (WRONG).
Option B. 100 tablespoons of cereal and 67 tablespoons of juice
100 tablespoons of cereal X 4 cents = 400 cents = $4
67 tablespoons of juice X 6 cents = 372 cents = $3.72
Option B gives a total of $7.72 (WRONG).
Option C. 80 tablespoons each of cereal and juice.
80 tablespoons of cereal X 4 cents = 320 cents = $3.2
80 tablespoons of juice X 6 cents = 480 cents = $4.8
Option C gives a total of $8 (CORRECT)
Option D. 40 tablespoons each of cereal and juice.
40 tablespoons of cereal X 4 cents = 160 cents = $1.6
40 tablespoons of juice X 6 cents = 240 cents = $2.4
Option D gives a total of $4 (WRONG)
Therefore, the correct option is C.
