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bija089 [108]
3 years ago
8

Olden Company has provided the following information for this month: Sales Price $50 per unit Variable COGS $13 per unit Fixed C

OGS $11,000 per month Variable Selling and Administration $2 per unit Fixed Selling and Administration $3,000 per month If market pressure forces Olden to cut its sales price from $50 to $35, what is the new break-even in units?
Business
1 answer:
Pie3 years ago
7 0

Answer:

700 units

Explanation:

The breakeven point is also known as the BEP. The BEP  is the number of units a company must sell for sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

Let the BEP units be T

35T = 11,000 + 3000 + T(13 + 2)

35T - 15T = 14,0000

20T = 14,000

T = 700

The company's new breakeven in units is 700 units

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In 2013, there were approximately 155 million people in the labor force and the unemployment rate was 7.4 percent. If the unempl
Marianna [84]

Answer:

(a) 3.7

(b) 3.7

Explanation:

The unemployment rate is calculated as the ration of unemployed workers over the labor force. The labor force is the total number of employed plus unemployed workers:

Unemployment\,Rate=\frac{Unemployed\,Workers}{Labor\,Force}=\frac{Unemployed\,Workers}{Employed\,Workers+Unemployed\,Workers}

Then if there were 155 million people in the labor force and 7.4% where unemployed that means that 11.47 million people where unemployed

0.074=\frac{Unemployed\,Workers}{155}

Unemployed\,Workers=0.074*155=11.47

If unemployment rate would have been 5% we have

Unemployed\,Workers=0.05*155=7.75

That means that 3.72 million fewer unemployed workers. Since Labor Force is the sum of unemployed and employed workers. The reduction in unemployment implies that they were now employed .

5 0
3 years ago
Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that
almond37 [142]

Answer:

$20

Explanation:

Calculation for the marginal cost of producing an additional unit of output

Using this formula

Marginal cost=Wage per week/Marginal product of labor

Let plug in the formula

Marginal cost= $700 per week/35 units per week

Marginal cost= $20

Therefore the marginal cost of producing an additional unit of output is $20

3 0
2 years ago
Beta LLC has decided to change its promotion and pay policies for technical people who do not wish to become managers. This will
daser333 [38]

According to the comprehensive approach to change, the step of the change process that Beta LLC is operating in is <u>recognizing the need for change</u>.

<h3>What are the steps of the change process?</h3>

The change process involves the following steps:

  1. Diagnosing the problem
  2. Assessing the motivation or need and capacity for change
  3. Assessing the resources and motivation of the change agent
  4. Establishing change objectives and strategies
  5. Determining the role of the change agent
  6. Implementing the changes.

Thus, according to the comprehensive approach to change, the step of the change process that Beta LLC is operating in is <u>recognizing the need for change</u>.

Learn more about the steps of the change process at brainly.com/question/5689601

3 0
2 years ago
The Fowlers own a townhouse that they have been renting out for many years. It provides a steady source of income each month, bu
SVEN [57.7K]

Answer:

Explanation:

There are a wide range of different types of investments that can be made. One of which are Dividend-paying Stocks. These are individual company stocks that payout dividend payments to the holders of their stocks. Usually, these payments are made quarterly throughout the year but is a steady way of making extra regular passive income, without the maintenance work. Even though the income is usually steady the price of the stock can fluctuate and either increase or decrease in price depending on many different factors.

Another investment idea would be to create a digital course. If you invest time and a little money into creating a video course with information that is valuable to individuals around the world. Then that course can generate passive income for years to come. There is always something that someone around the world wants to learn which makes these courses valuable and people are willing to pay for that. The pros to this are that it can generate income steadily and for a very long time with little to no maintenance, while the cons are that it does take time to create and even more time if you do not yet possess the required knowledge in that topic.

6 0
2 years ago
Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by
borishaifa [10]

Answer:

Financing cash flows will be as follows;

Explanation:

Stocks                        $11,000

Loan                          $16,000

Dividends paid            ($1,100)      

Cashflows from financing activities   $25,900  

The salaries paid and service revenues received are shown in operating activities, therefore they are not shown in financing activities of cash flow statement.

6 0
3 years ago
Read 2 more answers
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