1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zarrin [17]
3 years ago
6

Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling

price, and fixed costs are $12,000 per month. Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $70 per unit, the dollar volume of sales per month necessary for Accents to break-even is: Group of answer choices $12,000. $20,000. Some other amount. $30,000.
Business
1 answer:
katrin2010 [14]3 years ago
4 0

Answer:

$20,000

Explanation:

Break-even sales is the point of sales at which the business incur no profit no loss. At this level of sale the business covers all of the variable and fixed cost associated with the product. Break-even is expressed in sales volume and sales value terms.

Current Selling Price = $70

As we know

Sales price = Variable cost + Contribution margin

Sales price = Variable cost ratio + Contribution margin ratio

100% = 40% + Contribution

Contribution = 100% - 40% = 60%

Fixed Cost = $12,000 Per month

Break-even sales  = Fixed Cost / Contribution margin ratio

Break-even sales  = $12,000 / 60% = $20,000

You might be interested in
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled b
vova2212 [387]

Answer:

B) Retaining

Explanation:

Retaining risk refers to the risk in which the company could able to take the decision with respect to the responsibility for some particular risk

Here in the given situation it represents that the risk is associated with one of the key members so this presents the responsibility that should be considered while retaining a risk

Hence, the correct option is B.

7 0
3 years ago
If the production of a product or service involves external benefits, then the government can improve efficiency in the market b
gavmur [86]

Answer:

Providing a subsidy to correct for an underallocation of resources.

Explanation:

In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.

If the production of a product or service involves external benefits, then the government can improve efficiency in the market by providing a subsidy to correct for an underallocation of resources such as capital, land and labor used for production of these products.

4 0
3 years ago
A perfectly elastic demand curve implies that the firm: A) must lower price to sell more output. B) can sell as much output as i
dsp73

Answer:

A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.

Explanation:

The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.

4 0
3 years ago
A production possibilities frontier identifies the dollar cost of producing a good or service in an economy. True or False
belka [17]

Answer:

A production possibilities frontier identifies the dollar cost of producing a good or service in an economy.

True

Explanation:

Cost of producing could be envisaged through budgeting where the variable cost, fixed cost and total cost is expected to be calculated either through rough estimate.

3 0
3 years ago
John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make t
pashok25 [27]

Answer

dis shmeat

Explanation:

7 0
2 years ago
Other questions:
  • In an equipment replacement decision, the cost of the old equipment is a(n)
    8·1 answer
  • When a firm takes existing products and attempts to sell them to new markets, this growth strategy is considered: A. Market deve
    8·1 answer
  • The number of persons coming through a blood bank until the first person with type A blood is a random variable Y with a geometr
    5·1 answer
  • Process cost accounting is most appropriate when there is continuous production on a single product. when a company produces mor
    8·1 answer
  • Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than feder
    15·1 answer
  • Emma Pebble and Chase Stone formed a partnership in a landscape business. Under their arrangement, Emma actively manages the com
    10·1 answer
  • For marketing to occur, there must be two or more parties with unsatisfied needs. Dr. Pepper Snapple Group distributes Country T
    10·2 answers
  • Ehere is miley fans here i csnt see​
    14·1 answer
  • The following selected transactions were completed during March of the current year: March 1 Billed customers for fees earned, $
    14·1 answer
  • A recent national survey found that high school students watched an average (mean) of 6.8 DVDs per month with a population stand
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!