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Goshia [24]
3 years ago
8

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.
Business
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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<h3>Why will Hudson face these problems?</h3>

Hudson would be going up against already established companies who have a loyal customer base and less costs as they do not need to pay for startup costs.

Hudson will also incur high investment costs in the areas of production and advertisement as they try to establish themselves in the European markets.

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In conclusion, Hudson faces several challenges.

Find out more about start up costs at brainly.com/question/13923720.

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Answer:

A trust

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3 years ago
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Answer:

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Explanation:

Giving the following information:

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