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VLD [36.1K]
3 years ago
15

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and woul

d decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be: $300,000. $400,000. $325,000. $500,000. $375,000.
Business
1 answer:
liq [111]3 years ago
5 0

Answer: $375,000

Explanation:

Given the following :

Selling price = $100

New variable cost per unit =$(70 - 10) = $60

New fixed cost = $150,000

Break-even point in dollars:

Fixed costs/Contribution margin ratio

contribution Margin Ratio

[(selling price per unit - total variable cost per unit) /selling price per unit]

= [($100 - $60) / $100]

$40 / $100 = 0.4 = 40%

Break-even point in dollars:

$150,000 / 0.4 = $375,000

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Answer:

$295000.

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For Monty Corp:

asset cost = $360000,

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Depreciable  cost will be

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5 0
3 years ago
Suppose that in Year 1 daily sales at Dave's Deli daily totaled $1,000, and daily sales at Bertha's Burgers totaled $1,500. In Y
kolezko [41]

Answer:

30%

Explanation:

Given that,

In year 1:

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In year 2:

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Therefore,

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= ($300  ÷ $1,000) × 100

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Therefore, the Dave's sales increases by 30%.

4 0
4 years ago
The estate of monique chablis earned $390 of income this year. is the estate required to file an income tax return?
Tomtit [17]

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Given that the income of monique chablis is $390.

We are required to find whether monique chablis is required to file the income tax return or not.

No, the estate of monique chablis is not required to file the income tax return because the income is less than $600.

Income tax is a direct tax paid by income earners to government.

Income tax return is nothing but the annual record of your income.

The person whose income exceeds the limit has to file income tax return and the limit is decided by the government.

Hence it is said that the estate of monique chablis not required to file income tax return.

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8 0
2 years ago
. In the trade scenario in problem 1, due to overfishing, Norway becomes unable to catch the quantity of fish that it could in p
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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
The globalization of business and changing demographic trends will present organizations with a tremendously culturally diverse
cupoosta [38]

Answer:  Option A

     

Explanation: In simple words, globalization refers to the process under which the business organisations become able to operate their activities in more than one nation. Globalization has opened worldwide market gates for business organisations.

To operate business in a foreign country, entities must have to use some local resources like employees of the target country for gaining efficiency. This results in a problem of miscommunication or no communication in which the managers might not be able to exchange information will all the different departments leading to loss of potential synergies.

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8 0
3 years ago
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