1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
patriot [66]
2 years ago
12

Neptune Company produces toys and other items for use in bthe following and resort areas. A small, inflatable toy has come onto

the market that the company is anxious to produce and sell. The new toy will sell for 3 per unit. Enough capacity exists in the company's plant to produce 16,000 units of the toy the following month. Variable costs to manufacture and sell one unit would be 1.25 , and fixed costs associated with the toy would total 35,000 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 16,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of 1,000 per month. Variable costs in the rented facility would total 1.40 per unit, due to somewhat less efficient operations than in the main plant.
(a) Compute the monthly break-even point for the new toy in units and in total sales dollars. Show all computations.
Business
1 answer:
Sergeu [11.5K]2 years ago
8 0

Break-even point (in dollar sales):

Determine the monthly break-even point for the new toy in dollar sales as shown below:

Break-even point (in sales dollars) = Break-even point (in units) × Selling price per unit

=50,115 units $2.60 each

= $130,299

Thus, the break-even point (in sales dollars) is $130, 299.

The break-even point is the point at which total costs equal total sales. In other words, there is no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product. A breakeven point is used in multiple areas of business and finance.

Learn more about the break-even point at

brainly.com/question/9212451

#SPJ4

You might be interested in
Joe's Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective ca
Nat2105 [25]

Answer:

Design Capacity Utilization= 75%

Production efficiency = 120%

Explanation:

Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there

1. The Capacity Utilization = The Actual Output/ Design Capacity

Actual Output= 300 hamburgers a day

Design Capacity = 400 Hamburgers a day

Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100

= 75%

2. The Efficiency of the production = The Actual Output / The Effective Capacity

Actual Output = 300 Hamburgers a  day

Effective Capacity = 250 hamburgers

= 300 Hamburgers/ 250 Hamburgers x 100

= 120%

Conclusion

First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.

3 0
3 years ago
Coffee and tea are substitutes in consumption. If there is an increase in the price of coffee, assuming a positively sloped supp
exis [7]

Answer:

Will increase

Explanation:

Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.

5 0
3 years ago
a new machine with a purchase price of $109,000, with transportation costs of $12,000, installation costs of $5,000, and special
egoroff_w [7]

Based on the information given the cost basis is $132,000.

Using this formula

Cost basis=Purchases price+ Transportation costs + Installation costs +  Special acquisition fees

Where:

Purchases price=$109,000

Transportation costs=$12,000

Installation costs=$5,000

Special acquisition fees=$6,000

Let plug in the formula

Cost basis=$109,000+$12,000+$5,000+$6,000

Cost basis=$132,000

Inconclusion the cost basis is $132,000.

Learn more about cost basis here:brainly.com/question/15637366

6 0
2 years ago
Sally Ferguson, CFA, is a hedge fund manager. Ferguson utilizes both futures and forward contracts in the fund she manages. Ferg
GaryK [48]

Answer:

The correct answer is letter "B": Both statements are correct.

Explanation:

A futures contract is a type of forward contract between a buyer and a seller of an asset. They agree to exchange goods and money at a future date but at a price and quantity determined today. Futures contracts are standardized, regulated, and free of counterparty risk. In difference to other forward contracts, futures contracts are traded in secondary markets such as the Chicago Mercantile Exchange and the Intercontinental Exchange.

A forward contract is an agreement to buy and sell an asset at a future date. The price of the asset is fixed at the time the contract is executed. They are similar to a futures contract but forward contracts do not trade in an exchange.

8 0
3 years ago
The following table contains statements that provide some analysis of policies that address the minimum wage. Categorize each of
Musya8 [376]

Answer and Explanation:

The classification is as follows:

a. It is a normative statement as it discussed that there is an efficient wages for all types of workers for earnings

b. It is a positive statement that depend upon the facts and proofs as the leisure for workers would create more unemployment as compared to before

c. It is a normative statement

d. It is a positive statement as the workers who are less skilled they can be settled for the minimum wages as they dont get the highest paying jobs because these jobs would be belong to those workers who are highly skilled

3 0
3 years ago
Other questions:
  • If you lose your ATM card and the person who finds it withdraws money from your account, you will lose no more than $50 from you
    5·1 answer
  • You are planning to make monthly deposits of $458 into a retirement account that pays 6.3 percent interest compounded monthly. I
    12·1 answer
  • What do you call the second year of high school?
    10·1 answer
  • A firm has a profit margin of 12 percent; total asset turnover of 0.55 and an equity multiplier of 2.2. What is the firm's ROA a
    9·1 answer
  • Doug is the vice president of product development for a corporation that makes flavored honey. Doug proposes to the board that t
    13·1 answer
  • BT Alex Brown Analysts are evaluating Energen (NYSE: EGN) for possible inclusion in a small-cap oriented portfolio. EGN is a div
    10·1 answer
  • 6. Commercial banks create money by
    13·2 answers
  • Pina Colada Corp. issued 22000 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $53000
    5·1 answer
  • Tracey decides to lease a car for two years. She puts $0 money down and pays $209.15 per month. At the end of the lease, Tracey
    11·1 answer
  • In what ways might monetary policy be superior to fiscal policy?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!