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dimaraw [331]
3 years ago
5

The following data are for Lily Kay Company. Total sales revenue $250,000 Number of units sold 50,000 units Contribution margin

per unit $3.50 Fixed costs $100,000 Calculate the number of units that must be sold to generate net income of $80,000.
a. 120,000 units
b. 51,429 units
c. 22,857 units
d. 5,714 units
e. 13,333 units
Business
1 answer:
eduard3 years ago
3 0

Answer:

b. 51,429 units

Explanation:

If x = Number of units

Net Income = Sales Revenue - Variable Cost - Fixed Cost

or

Net Income = Contribution Margin - Fixed Cost

where,

Net Income = $80,000

Contribution Margin per unit = $3.50

Fixed Cost = $100,000

Contribution Margin = Net Income + Fixed Cost

$3.50x = $80,000 + $100,000

$3.50x = $180,000

Dividing the above equation by $3.50 we get

x = $180,000 / $3.50

x = 51,429 units

Hence 51,429 number of units must be sold to generate the net income of $80,000.

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A ___ warranty promises replacement or refund for defective products.
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Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2014, when
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7 0
3 years ago
A graduated commission employee makes 3. 5% interest on the first $50,000 in sales and 6. 5% interest on all sales over $50,000.
Harman [31]

The correct form of expression to express the context earning on the sales of the products is  (0. 035)(50,000) (0. 065)(81,500).

The context is about a graduate who earns on the basis of commission on the fixed amount of stock. On the sale of the first $ 50,000, he is getting 3.5% and the sales above $50,000 he is getting a commission of 6.5%.

Thus, the rate of 3.5% will be multiplied with the sales of %50,000, and the rate of 6.5% will be multiplied by the number of sales above $50,000 that is $81,500.

Therefore, the correct option is a.

To know more about the expressions that express the total earning of the employee, refer to the link below:

brainly.com/question/2337923

8 0
2 years ago
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which perio
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Answer:

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In this scenario, Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on adverse possession.

In Real estate law, Adverse possession is a legal principle which allows a non-owner individual to possess a piece of land and gain title with the exclusion of the real owner, after a certain period of time.

However, the non-owner occupant must proof to the court of law meets the following requirements;

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2. Hostile.

3. Open.

4. Actual.

5. Exclusive.

5 0
4 years ago
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