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2 years ago

If a company decreases its sales price per unit, the new breakeven point will?

Business

1 answer:

xenn [34]2 years ago

8 0

If a company decreases its sales price per unit, the new breakeven point will increase.

The breakeven point is the point at which general cost and total revenue are identical, which means there's no loss or gain for your small business. In different phrases, you have reached the level of production at which the expenses of production equal the sales for a product.

The break-even point in economics, enterprise—and in particular fee accounting—is the point at which overall cost and total revenue are identical, i.e. "even". There is no internet loss or advantage, and one has "damaged even", though possibility charges had been paid and capital has acquired the threat-adjusted, predicted return.

To calculate the break-even factor in units use the system: spoil-Even point (gadgets) = fixed fees ÷ (income fee according to unit – Variable costs in keeping with the unit) or in income greenbacks the usage of the formula: spoil-Even point (sales dollars) = fixed costs ÷ Contribution Margin.

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The correct answer is Term

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Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA),

Gemiola [76]

Answer:

Correct Answer:

e. Company Heidee has a higher ROE than Company Leaudy.

Explanation:

Return on Equity, (ROE) is a ratio that provides investors with insight into how efficiently a company and more specifically, its management team is handling the money that shareholders have contributed to it. That is, it measures the profitability of a corporation in relation to stockholders' equity.

Company Heidee has the higher debt ratio shows that the ROE is very high. This shows that the investors money in Company Heidee is well managed in the business.

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3 years ago

A $1,000 par value bond was issued five years ago at a 8 percent coupon rate. It currently has 25 years remaining to maturity. I

mixas84 [53]

Answer:

a: current value of the bond $405.11

b: Robison loss: 59.49%

c Pinson gain: 146.85%

As the investment is smaller the percentage change at maturity is greater than the difference in percentage of the par value.

A percent of the original investmentrepresent 10 dollars while !% of Mrs Pinson represent 4.05 dollars

Explanation:

The present value of the bonds is the sum of the present value of the coupon payment and the maturity discounted at market rate:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C: 1,000 x 8% / 2 = 40.00

time: 25 years x 2 payment per year = 50

market rate 0.10

$40 \times \frac{1-(1+0.1)^{-50} }{0.1} = PV\\$

PV $396.5926

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 50.00

rate 0.1

$\frac{1000}{(1 + 0.1)^{50} } = PV$

PV 8.52

PV c $396.5926

PV m $8.5186

Total $405.1111

Robinson capital loss:

405.1111/ 1,000 -1 = -59.49%

If purchased today and held to maturity by Mrs Pinson:

1,000 / 405.1111 - 1 = 146.85%

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4 years ago

If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total emp

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Answer: D). increases by $1,000

Explanation:

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3 years ago

The probability that an audit team will express an inappropriate audit opinion when the financial statements are materially miss

Leya [2.2K]

The probability that an audit team will express an inappropriate audit opinion when the financial statements are materially misstated is the definition of audit risk.

When the financial statements are materially misstated, the auditor expresses an inappropriate audit opinion, this risk which an auditor gives is called the audit risk. So, when the auditor fails to modify an opinion on the financial statements it is an audit risk.

The audit risk will typically rise as an auditor will never be able to obtain absolute assurance by conducting audit procedures. Thus, after identifying the audit risk, auditors are often required to identify the relevant response to these risks.

Hence, the audit risk is a function of the risk of material misstatement.

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1 year ago