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Lunna [17]
3 years ago
14

Street Company's fixed expenses total $150,000, its contribution margin ratio is 40% and its selling price per unit is $11.25. B

ased on this information, the break-even point in units is:
Business
1 answer:
pickupchik [31]3 years ago
3 0

Answer:

Break-even point in units= 33,333.33 units

Explanation:

<em>The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss. </em>

The beak-even point can be determined as follows:  

The Break-even point in sales = Total general fixed cost / Contribution per unit margin

Contribution per unit = Contribution margin ration ×  selling price

                                   = 40%×11.25 =4.5

The break-even point (in unit) =  150,000/ 4.5 =33,333.33

break-even point in units= 33,333.33 units

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When you purchase an turn in a store, you may be charged with
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Don't know what you're trying to say but all that popped in my head was tax
4 0
3 years ago
Read 2 more answers
A stock is trading at $58. You believe there is a 70% chance the price of the stock will increase by 10% over the next 3 months.
MAXImum [283]

Answer: $498

Explanation:

A Put is an option that will only be exercised if the price of the underlying security which is the stock in this case, falls below the current price of $58.

This means that we will not include the 70% chance of increase in our calculation.

In a contract, there are 100 shares.

Expected profit = Contract price - (Prob. of dropping by 10% * 10% of stock) - (Prob. of dropping by 20% * 20% of stock)

= 730 - ( 20% * 10% * 58 * 100) - (10% * 20% * 58 * 100)

= 730 - 116 - 116

= $498

3 0
3 years ago
Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock
oee [108]

Answer:

$4,350

Explanation:

Calculation to determine your net profit or loss on this investment

Net profit = (-$0.60 - $42.70 + $52) × 100 × 5

Net profit= $4,350

Therefore your net profit or loss on this investment is $4,350

7 0
2 years ago
The following events occurred for Johnson Company: a. Received investment of $39,000 cash by organizers and distributed 1,190 sh
soldi70 [24.7K]

Answer:

Cash 39.000 debit

  Common Stock       1,190 credit

  Additional Paid-in 37,810 credit

Equipment  7,100 debit

  Cash                  1,300 credit

  Note payable   5,800 credit

Cash    15,000 debit

 Note payable 15,000 credit

Explanation:

We debit the cash received and credit the face value of the common stock

the difference is label as additional paid-in common stock which, is also credited.

as the equipment is worth 7,100 and we paid 1,300 cash the differnece: 7,100 - 1,300 = 5,800 is the principal of the note signed

As the equipment which enters the firm is  an asset it wil lbe debited.

the cash is being used thus, credited and the note is a liability hence credit as well

the third event consist of a inflow of cash thus debit and taking a liability therefore, credit.

8 0
3 years ago
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits an
ikadub [295]

Answer:

$ 226.04

Explanation:

Given:

Paying fund, FV = $ 30000

Interest rate, i = 2%

Time, t = 10 years

Now,

\textup{PMT}=\textup{FV}[\frac{i}{(1+i)^n-1}]

since, the payment is made monthly

thus,

n = 10 × 12 = 120 months

i = 2% / 12 = 0.02 / 12

on substituting the values in the above equation, we get

PMT={30000}[\frac{\frac{0.02}{12}}{(1+{\frac{0.02}{12}})^{120}-1}]

or

PMT = $ 226.04

3 0
3 years ago
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