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mart [117]
3 years ago
9

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data

are: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?
Business
1 answer:
Oliga [24]3 years ago
3 0

Answer:

Carter Co.'s break-even point in units was 40000 units.

Explanation:

Total units sold = 14000 + 56000

                          = 70000

Weight of ark = 14000/70000

                      = 0.20  

weight of bins = 1 -0.20

                        = 0.80

weighted average contribution = (40 *0.20 ) + (20 *0.80 )  

                                                    = 8+ 16  

                                                    = $ 24 per unit

Break Even Point (Units) = Fixed cost /weighted average contribution

                   = 960,000 / 24  

                   = 40000 units

Therefore, Carter Co.'s break-even point in units was 40000 units.

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Answer:

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A high opportunity cost in one product relative to that of the other entity means the entity with the higher opportunity cost should be trading with the entity with the lower opportunity cost and vice versa.

For example, assume that an entity "A" produces both rice and beans whilst an entity "B" also produces rice and beans too.

If the opportunity cost to A of producing Beans is 300 bags of rice whilst the opportunity cost to B of producing Beans is 120 bags of rice, and the opportunity cost to A of producing rice is 180 bags of beans whilst it is 250 bags of beans to B, the principles of comparative advantage require that A should focus more on producing rice and purchase beans from B whilst B should focus more on producing beans and purchase rice from A.

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4 0
3 years ago
Southern california publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalys
steposvetlana [31]

If the company requires a return of 10 percent for such an investment, calculate the present value of the project.

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8 0
3 years ago
FIllmore Company began operations on Sept. 1 by purchasing $4,400 of inventory and $750 of cleaning supplies. During the month,
jarptica [38.1K]

Answer: $3,400

Explanation:

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RUDIKE [14]

Answer:

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5 0
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