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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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4 years ago
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Answer:

Holly; more

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Holly Inc is more sensitive to the economic conditions of Thailand because they want to contribute to the country's GDP and growth by selling computers in Thailand.

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3 years ago
If you were in a debate fighting for the rights of something what techniques should you use, just curious?
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The _______ transport of auxin establishes the orientation of growth; the _______ redistribution of auxin causes a growth respon
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Klio2033 [76]

Answer:

$4,713.425

Explanation:

The computation of amount of net pay for the employee for the month of January is shown below:-

Deductions = (Gross earning × Social security tax rate) + (Gross earning × Medicare tax rate) + Federal income taxes + Health insurance + Contribution of retirement plan

=  ($5,550 × 6.2%) + ($5,550 × 1.45%) + $184 + $152 + $76

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