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Answer:
b. $20.
Explanation:
Regardless of what the break-even volume is, at this volume profits are zero.
This means that any unit sold beyond this point will provide a profit equivalent to its marginal benefit, which is its selling price subtracted by its variable cost.
If a product sells for $50 and has a variable cost of $30, by selling one unit in excess of its break-even volume, the profit will be:
The profit will be $20.
Answer:
d. 15.09
Explanation:
425,000 sales
52,500 AR
year of 365 days
<u>Days Sales Outstanding</u>
<u>Average days late</u>
45.09 - 30 = 15.09
in average customer pays within 45 days.
That is 15.09 days above the allowed credit period.