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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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Options:

He pulled the United States out of these negotiations.

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He quickly signed the agreements after taking office.

He asked that the United States control more than 50 percent of the involved nations.

He agreed that even more multilateral trade agreements should be established.

Answer:He pulled the United States out of these negotiations.

Explanation:Trans Pacific Partnership is one of the strategic policies of Former president barrack Obama,it involves a dress trade agreements between the United States of America and the Asian countries but in 2017,President Trump withdrew from the trade agreements.

President Trump also pulled out if the Transatlantic Trade and Investment Partnership which was a trade agreement between the United States of America and Europe.

7 0
3 years ago
A car manufacturer offers either​ $2,000 cash back or zero percent financing for 5 years. A rational consumer will always take t
tester [92]

Answer:

The answer is: true

Explanation:

Rational behaviour entails making decisions or taking actions that result in maximising utility or satisfaction. The time value of money dictates that the opportunity cost of foregoing earning potential today is the interest accrued on the savings for future use. A rational consumer who wants to maximise utility will always take the $2,000 dollar cash back since the implicit interest incurred by taking the 0% financing results in a lower future value (in 5 years).

4 0
3 years ago
Patrick Inc. makes industrial solvents sold in 5-gallon drum containers. Planned production in units for the first 3 months of t
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Answer:

Ending inventory (December)   =  $72,270

Ending inventory (January)  =  $67,650

Ending inventory (February)   =  $82,912.50

Beginning Inventory (January ) = $72,270

Explanation:

The ending inventory of chemicals in gallons :

Note : Based on Company policy, this was determined as 15% of next month's production needs.

Ending inventory (December)  = 43,800 × 15% × 5.5 gallons × $2.00

                                                   =  $72,270

Ending inventory (January)  = 41,000 × 15% × 5.5 gallons × $2.00

                                                   =  $67,650

Ending inventory (February)  = 50,250 × 15% × 5.5 gallons × $2.00

                                                   =  $82,912.50

The beginning inventory of chemicals for January is equal to the Ending inventory for December that is $72,270

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Answer:

B. Must constantly adjust or revise my plans.

It's best to keep your plans up to date or you can be met with bitter disappointment.

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