Find a convenient and reasonable unit of measurement to use, then divide the cost of the package by the number of units chosen in that package.
The break-even point is calculated as -
Break-even point (in units) = Fixed cost ÷ Contribution margin per unit
Here,
Selling price = $ 21.95
Variable cost (manufacturing costs) = $ 14.92 (since, costs bifurcation is not given, the manufacturing costs are taken as variable costs)
Contribution per unit = Selling price - Variable cost (manufacturing costs)
Contribution per unit = $ 7.03
Fixed cost (monthly) = $ 8500
Now,
Break-even point (in units) = $ 8,500 ÷ $ 7.03
Break-even point (in units) = 1,209.1 or 1210 games
Answer:
resource smoothing
Explanation:
According to the definition provided in the question we can say that this is regarding resource smoothing. Like mentioned in the question this term refers to a management technique that adjusts the resources so that the requirements do not surpass the resource limits that the company has specified, by delaying the noncritical activities in order to allow for the important ones first.
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Answer:
EAW = -$17,545.71
Explanation:
initial investment = $200,000
cash inflows;
- Year 1 = $33,000
- Year 2 = $44,000
- Year 3 = $55,000
- Year 4 = $66,000
- Year 5 = $77,000
- Year 6 = $88,000
- Year 7 = $99,000
- Year 8 = $110,000
- Year 9 = $132,000
cash outflows:
- Year 1 = $20,000
- Year 2 = $30,000
- Year 3 = $40,000
- Year 4 = $50,000
- Year 5 = $60,000
- Year 6 = $70,000
- Year 7 = $80,000
- Year 8 = $90,000
- Year 9 = $100,000
EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs
to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84
EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91
to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395
EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62
EAW = $70,905.91 - $88,451.62 = -$17,545.71
