The <u>number of units</u> that must be sold to achieve $40,000 of operating income is 617 units.
<h3>What is break-even analysis?</h3>
Break-even analysis is an accounting concept that can be used to determine the <u>number of units</u> that must be sold to achieve $40,000 of operating income. This can be computed by using the concept of break-even analysis as follows:
<h3>Data and Calculations:</h3>
Sales units = 500 units
Sales revenue = $75,000
Selling price per unit = $150 ($75,000/500)
Variable costs = $28,000
Variable cost per unit = $56 ($28,000/500)
Contribution margin per unit = $94 ($150 - $56)
Fixed costs = $18,000
Target operating income = $40,000
Break-even point in units to achieve target profit = 617 units ($18,000 + $40,000)/$94
Thus, the <u>number of units</u> that must be sold to achieve $40,000 of operating income is 617 units.
Learn more about break-even analysis at brainly.com/question/21137380
When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.
Hope that helps!
Answer:
I believe this would be D
Explanation:
I say that it is D because it is asking about what they would do under certain circumstances and or situations to see what they would say
Answer:
Explanation:
Assume the <em>cost</em> equation to be:
Where 
is the number of units (wooden baseball bats) produced.
The <em>average cost per unit of production level</em> is the total cost divided by the number of units produced:
You are given that the <em>average cost per unit of a production level of 7,700 bats is $14</em>, then:
You are also given that the <em>fixed costs</em> are <em>$22,500</em>, thus A = 22,500. Hence, you can substitute the value of A in the previous equation and find B:
Now you can complete the cost equation:
And to predict the total costs for 8,600 bats you must subsitute x with 8,600 in the previous equation:
Answer:
An implied agreement is based on a formal agreement.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implied contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, executory contract, etc.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Simply stated, mutual assent connotes agreement, acceptance and consent to a contract by both parties.
An implied contract can be defined as an informal contract that exists based on an assumption or understanding between two or more parties, rather than on terms that are formally and specifically defined.
This ultimately implies that, an implied agreement is not based on a formal agreement but on assumptions or understanding between the parties involved.
