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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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Which of the following investments has a higher present​ value, assuming the same​ (strictly positive) interest rate applies to
Sladkaya [172]

Answer:

Investment Y has a greater present value

Explanation:

present value is the sum of disoucnted cashflows

i would choose an interest rate of 10% to calcuate the present values

for investment X

cash flow in year 1 = $5,000

cash flow in year 2 = $7,000

cash flow in year 3 = $9,000

cash flow in year 4 = $11,000

I = 10%

PV = $24,605.56

or investment Y

cash flow in year 1 = $11,000

cash flow in year 2 =$9,000

cash flow in year 3 = $7,000

cash flow in year 4 = $5,000

I = 10%

PV = $26,112.29

Investment Y has a greater present value

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

7 0
3 years ago
The flow of money received on a sometimes a weekly, monthly, or yearly basis is known as __________.
morpeh [17]
The flow of money received on a sometimes a weekly, monthly, or yearly basis is known as SALARY.

Salary is the compensation employees received from their employers. It can be weekly, monthly, or yearly basis depending on the contract agreement between the two parties.
4 0
3 years ago
You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. W
babymother [125]

Answer:

= $ 219,657.43

Explanation:

FV of annuity = P x [(1+r) n -1/r]

P = Periodic payment = $ 20,000

r = Periodic interest rate = 0.08

n = Number of periods = 20

FV = $ 60,000 x [(1+ 0.08)20 -1/0.08]

  = $ 60,000 x [(1.08)20 -1/0.08]

  = $ 60,000 x [(4.66095714384931 -1)/0.08]

  = $ 60,000 x (3.66095714384931/0.08)

= $ 60,000 x 45.7619642981163

= $ 2,745,717.85788698 or $ 2,745,717.86

FV of annuity due =(1+r) x P x [(1+r) n -1/r]

                              = (1+0.08) x $ 2,745,717.85788698

                              = 1.08 x $ 2,745,717.85788698

                             = $ 2,965,375.28651794 or $ 2,965,375.29

Difference in FV of ordinary annuity and annuity due

                             = $ 2,965,375.29 - $ 2,745,717.86

                             = $ 219,657.43

3 0
3 years ago
Why do consumer advocates advise against using alternative financial services?.
spayn [35]

Consumer advocates advise against using alternative financial services because of the high cost that's associated with the loans and other services.

<h3>What is a financial service?</h3>

It should be noted that a financial service simply means a wide range of activities such as banking, insurance and investing.

In this case, consumer advocates advise against using alternative financial services because of the high cost that's associated with the loans and other services.

Learn more about financial services on:

brainly.com/question/1357912

7 0
2 years ago
What is transfer by devise?
Vesna [10]
Hi There! :)

<span>What is transfer by devise?

</span><span>The transfer or conveyance of property by will, usually in reference to real property.</span>
7 0
3 years ago
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