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Montano1993 [528]
3 years ago
8

Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the

break-even point for the product change if the variable cost per unit goes up to $1.50?
Business
1 answer:
Kamila [148]3 years ago
4 0

Answer:

The break-even point in units will increase by 400 units.

Explanation:

Giving the following information:

Fixed costs= $60,000

Selling price= $4.00

Unitary variable cost= $1

First, we need to calculate the current break-even point for the current situation.

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 6,000 / (4 - 1)

Break-even point in units= 2,000 units

<u>Now, the unitary variable cost is $1.5</u>

<u></u>

Break-even point in units= 6,000 / (4 - 1.5)

Break-even point in units= 2,400 units

The break-even point in units will increase by 400 units.

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I think is the answer c
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A detailed plan for the future that is usually expressed in formal quantitative terms is known as a:
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Answer: (A) Budget

Explanation:

 Budget is one of the type of financial plan that is create according to our requirement and also budget.

A budget is one of the type of document  that is used for describe the detailed plan in the future and it is usually expressed into the quantitative terms.

 The main objective of the budget is to creating a proper plan based on the expenses, revenue, liabilities and the cost in an organization and it also helps in balancing our expenses with the income.    

 Therefore, Budget is the correct answer.

5 0
3 years ago
(LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among
garri49 [273]

Answer:

  a) 120 skiers per day

  b) 6.25% increase in revenue

Explanation:

a) If the average skier stays 10 days, the average turnover is 1/10 of the skiers per day, or 1200/10 = 120 skiers per day.

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b) For a stay of n days, the average skier spends ...

  50 +(n-1)30 = 20 +30n

and the average spending per day is ...

  (20 +30n)/n = (20/n) +30

So, for a 10-day stay, the average skier spends in restaurants ...

  20/10 +30 = 32 . . . . per day

And for a 5-day stay, the average skier will spend ...

  20/5 +30 = 34 . . . . per day

The change in restaurant revenue is expected to be ...

  (34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues will be 6.25% higher compared to last year.

8 0
3 years ago
Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2
viva [34]

Answer:

a. 863

Explanation:

Calculation for the order quantity

Order quantity = 75 x (10 + 2) + (1.64 x 8) - 50

Order quantity = (75 x 12) + (1.64 x 8) - 50

Order quantity= 900 + 13.12 - 50

Order quantity= 863.12

Order quantity = 863

Therefore the Order quantity will be 863

8 0
3 years ago
Bill wants to give Maria a $590,000 gift in two years. If money is worth 12% compounded semiannually, what is Maria's gift worth
PtichkaEL [24]

Answer:

the present value is $467,335.2613

Explanation:

The computation of the value worth today is shown below:

= Amount in two years ÷ (1 + rate of interest)^number of years

= $590,000 ÷ (1 + 12% ÷ 2)^2×2

= $590,000 ÷ 1.06^4

= $590,000 ÷ 1.26247696

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Hence, the present value is $467,335.2613

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

8 0
3 years ago
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