Income Total $320,000 whilst variable expenses overall $2 hundred,000 and glued prices general $60,000. the sales volume is 5,000 gadgets. the breakeven point in income bucks is Sale 200000$
working
sale=400000$
VC= 300000$
Contribution=one hundred thousand/0.25
Contribution % to sales is 25%
BEP= Contribution = FC
FC=50000
Contribution % to sales is 25%
assume Sale is = X$ then
BEP= Contribution = FC
BEP= 25% of X$ = 50000$
X = 50000$/25%
X = 200000
The breakeven point is the point at which overall value and general sales are the same, meaning there's no loss or benefit to your small enterprise. In other words, you have reached the extent of production at which the charges of production equal the sales for a product.
The breakeven point in economics, business—and mainly price accounting—is the factor at which overall cost and overall revenue are the same, i.e. "even". there's no net loss or gain, and one has "broken even", even though possibility expenses have been paid and capital has received the risk-adjusted, expected return. This discernment is crucial as it's the most effective manner for an enterprise to decide if what it costs for its products and services will cover what it charges to make the products or provide the one's offerings.
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Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
$10
Explanation:
Steve achieved a producer surplus of $10, which is commensurate with the value of the 6-pack of beer he received from his neighbor. This means he practically sold the old surfboard for $10.
<u>Calculation of debt ratio:</u>
Debt Ratio can be calculated using the following formula:
Debt Ratio = Total Debt / Total Assets
We are given that debt/equity ratio is 0.50, it means Total Equity = 2 * Total Debt
Total Assets = Total Debt + Total Equity
So, Total Assets = Total Debt + 2* Total Debt
Or
Total Assets = 3* Total Debt
So, Debt Ratio = Total Debt / 3* Total Debt = 1/3 = 0.3333
Hence, Debt ratio is <u>0.3333</u>
Answer:
$53
Explanation:
The computation of the stock sale at the end of the year is computed after calculating the required rate of return and the growth rate
The required rate of return by applying the Capital Asset Pricing model formula is
= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.2 × (16% - 6%)
= 6% + 12%
= 18%
Now the growth rate is
Stock price = Dividend per share÷ (Required rate of return - growth rate)
$50 = $6 ÷ (18% - growth rate)
So, the growth rate is 6%
Now the ending stock price is
Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $6 + $6 × 6%
= $6 + 0.36
= $6.36
So,
= ($6.36) ÷ (18% - 6%)
= $53
