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ipn [44]
3 years ago
11

Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive

sells for $20 each. During the current month, 1,000 flash drives were sold. Fixed costs for the current month were $4,500. If variable costs increase by 10%, what happens to the breakeven level in units for the month for Benson Company?
Business
1 answer:
zvonat [6]3 years ago
4 0

Answer:

The answer is: The break even level increases in 50 units.

Explanation:

First we calculate the break even point without the increase in variable costs:

Break even point = fixed costs / contribution margin per unit

                             = $4,500 / ($20 - $10) = 450 units

Then we calculate the new break even point with the increase in variable costs:

New break even point = $4,500 / ($20 - $11) = 500 units

The difference between the new and old break even points is:

= 500 units - 450 units = 50 units

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Answer:

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Digitizing photographs complicated printing since it pushed printers' manufacturers to invest more in their development teams to create high-quality image printing devices. This was originated as a result of the spread of the paste-up process which allowed individuals to attach almost any image to their documents for printing purposes.

6 0
3 years ago
Joe and karina depend on both of their salaries to afford their mortgage. karina recently lost her job and they are worried that
WINSTONCH [101]

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3 years ago
Ldentify whether each statement in the following statement is true or false.
monitta

Answer:

The answer is (a) False (b) False (c) True

Explanation:

Solution

(a)Businesses that do not acquire a differentiation,focus strategy, or  low-cost leadership, is liable to be more successful than businesses that do adopt these strategies - False because Companies or business does not necessarily need to adopt differentiation methods or low cost leadership, they might have their own market strategy to succeed.

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5 0
3 years ago
In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earni
Anestetic [448]

Answer:

price ceilings

Explanation:

In contrast to goods and services markets, <u>price ceilings</u>  are rare in labor markets, because rules that prevent people from earning income are not politically popular.

8 0
3 years ago
The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts o
Ilia_Sergeevich [38]

Answer:

$8,319

Explanation:

Computation for the amount of Maintenance department expense to be allocated to Fabrication

First step is to calculate the total sum of square foot space

Using this formula

Total sum of square foot space = Fabrication square foot space + assembly square foot space

Let plug in the formula

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Total sum of square foot space= 5,950

Now let calculate the amount of Maintenance department expense to be allocated to Fabrication

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Therefore the amount of Maintenance department expense to be allocated to Fabrication is $8,319

8 0
3 years ago
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