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3 years ago

They have fixed costs of £200 per month Each item's raw materials cost £50 The items sell for £150 each

Business

1 answer:

natima [27]3 years ago

3 0

Answer:

2 unit

Explanation:

The break-even point is that point at which a business makes no profit after settling all the necessary fixed cost for the period. It is the point preceding profit making at which costs are recovered

It is calculated by dividing the fixed costs with the sales revenue less the variable cost per unit of an item.

<u>Workings</u>

Fixed cost = 200

Selling price = 150

Variable cost = 50

Break even point = 200/(150-50)

=2 units

Any sales below this ends up in a loss as the fixed cost will not be fully recovered.

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Pani-rosa [81]

When a product is scarce, consumers are faced with conducting their own cost-benefit analysis; a product in high demand but low supply will likely be expensive. ... This means that a consumer should only purchase the product if they see a greater benefit from having the product than the cost associated with obtaining it.

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2 years ago

Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200.

zavuch27 [327]

Answer: Debit Accounts Receivable -Valley Spa of $10,438 Credit interest revenue $238, Credit Notes receivable $10,200

Explanation:

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Journal to record dishonored note for Tubman

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3 years ago

According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was

Musya8 [376]

Answer:

Explanation:

1. The computation is shown below:

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Payroll tax expense A/c Dr $38,975

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2 years ago

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Explanation:

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3 years ago

When distributing a third party research report to its clients, an investment adviser (IA) must:

alexira [117]

Answer:

Explanation:

When distributing a third party research report to its clients, an investment adviser (IA) must disclose that there was a third party involved that prepared the report. This is because disclosing the reports origin is absolutely necessary and required by law when the person that prepared the report is anyone but the investment adviser. Mostly due to the fact that the clients place their trust in the investment adviser and are trusting him/her with their money.

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3 years ago