If profit is more than $10000 when fixed costs are $5000 and the price when producing 1000 units is $75, then variable cost is?

Break-Even for a Service Firm Jonah Graham owns and operates The Green Thumb Company (GTC), which provides live plants and flowe

kenny6666 [7]

Answer:

The company should provide, in average, 90 jobs per month in order to break even.

Explanation:

We will assume that the variable costs are proportional to the quantity and thus VC=a*Q

the profit obtained is

profit = P*Q , (Price [$/job] * Jobs sold [jobs])

and the total costs are

total costs= FC+VC = FC + a*Q , FC=fixed costs

in order to break even the quantity sold should be enough to cover all costs, therefore

profit = total costs

P*Q = FC + a*Q → Q= FC/(P-a)

thus

Q= FC/(P-a) = $3240 / ($60/job - $24/job) = 90 jobs

5 0

2 years ago

Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the

Zolol [24]

Answer:

In the books of Eisler Corporation :

Cash ( 2,000 x 1,000 x 101 %) A/c Dr. 2,020,000

Discount on Bonds Payable A/c Dr. $59,216

To Bonds Payable 2,000,000

To Paid-in Capital : Stock Warrants 79,216

Workings:

Bond issue proceeds proportionately allocated to bonds:

$=2,020,000\times\frac{980}{980+40}$

= 1,940,784.31

Discount on bonds payable = $ 2,000,000 - $1,940,784

= $59,216

4 0

3 years ago

Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8.1 percent.

sertanlavr [38]

Answer:

a-1) Pv = 52549

a-2) Pv = 56822

b-1) Fv = 77570

b-2 Fv = 83878

Explanation:

b-1) Future value:

S= Sum of amount of annuity=?

n=number of fixed periods=5 years

R=Fixed regular payments=13200

i=Compound interest rate= .081 (suppose annualy)

we know that ordinary annuity:

S= R [(1+i)∧n-1)]/i

= 13200[(1+.081)∧5-1]/.081

=13200(1.476-1)/.081

= 13200 * 5.8765

S = 77570

a.1)Present value of ordinary annuity:

Formula: Present value = C* [(1-(1+i)∧-n)]/i

=13200 * [(1-(1+.081)∧-5]/.081

=13200 * (1-.6774)/.081

=13200 * (.3225/.081)

=52549

a.2)Present value of ordinary Due:

Formula : Present value = C * [(1-(1+i)∧-n)]/i * (1+i)

= 13200 * [(1- (1+.081)∧-5)/.081 * (1+.081)

= 13200 * 3.9822 * 1.081

= 56822

b-2) Future value=?

we know that: S= R [(1+i)∧n+1)-1]/i ] -R

= 13200[ [ (1+.081)∧ 5+1 ]-1/.081] - 13200

= 13200 (.5957/.081) -13200

= (13200 * 7.3544)-13200

= 97078 - 13200

= 83878

5 0

3 years ago

Paano nakakatolong ang mga estruktura ng pamilihan sa pagpapaunlad ng ating bansa

kicyunya [14]

Answer:

<h3>PARA MAS LALO PANG GUMANDA ANG MGA STRAKTURA SA BANSA AT MARAMING MAIGANYUHAN ANG MGA TAO. NAKAKATULONG ITO SA MGA TAONG MAY TRBAHO NA MAY MGA HANAP BUHAY NA MAS LALO PANG LALAGO.</h3>

hopefully help:)

Explanation:

#CarryOnLearning

5 0

3 years ago

Define and explain each concept and give specific examples: a. Marginal Propensity to Consume and Marginal Propensity to Save (

siniylev [52]

Answer:

The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.

Multiplier Effect

for every dollar the government spends, it will create a greater than one dollar change in GDP

Spending Multiplier

1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.

Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.

Explanation: Marginal Propensity to Consume

the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI

Marginal Propensity to Save

the fraction of any change in disposable income that is saved; MPS = change is S / change in DI

3 0

2 years ago