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3 years ago

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QUESTION 25 Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Ann

ual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the break-even point in dollars. $1,740,000. $2,612,612. $1,304,348. $4,202,899. $2,640,000.

1 answer:

CaHeK987 [17]3 years ago

8 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000.

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 870,000/ [(450 - 300)/450]

Break-even point (dollars)= 870,000/0.333= $2,612,612.6

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Answer:

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Explanation:

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Marginal revenue product or value of marginal product:

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So, putting MRP or VMP to wage:

$P\times15\times L^{-0.5}=W$

By solving,

$\frac{(225\times p^{2})}{W^{2}}=L$

And the multiplicative term is $225\times p{^2}$

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As previously solved,

$P\times15 \times L^{0.5}=W$

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$VMP=\frac{P(5\times k^{0.5})}{L^{0.5}}$

( p is market price of good that firm is producing using labor)

putting it equal to Wage)

$W=\frac{(5\times k^{0.5})}{L^{0.5}}$

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Explanation:

The given is,

Simple interest of 4.5 %

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Step:1

Formula to calculate the simple interest method,

$F=P(1+iN)$ ...................................(1)

Where,

F - Future amount

P - Initial investment

i - Rate of interest

N - Number of years

From given,

i - 4.5%

Let, X - Initial investment, P = X

F = P + Interest amount

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From the equation (1),

$(X+90)=X(1+(0.045)(0.667))$

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From the X value.

F = P + 90

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Result:

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