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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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MissTica

Answer:

These are the options for the question:

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And this is the correct answer:

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Cannibalization occurs when a newly introduced product reduces the market share of previous products.

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lubasha [3.4K]
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Hope this helps
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4 years ago
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs pe
Fynjy0 [20]

Answer:

Instructions are lsited below

Explanation:

We don't have enough information to resolve with numbers. But I will leave the formulas necessary to resolve.

The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

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A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales=

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Advertising expense=

Shipping expense=  

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Insurance expense=

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