Since the units can be produced within existing plant capacity, the special order will not increase fixed costs. Let’s identify the relevant data for the decision. First, the variable
manufacturing costs will increase $30000 (15000×2). Second, the expected revenue will increase $37500 (15000×2.5). Thus, will increase its net income by $7500 (37500-30000) by accepting this special order.
Answer:
The company must sell 10,00 products to break even
Explanation:
If you use the approached suggested in the question, you can solve for break even quantity by setting revenue to equal cost
R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000
<u>Double check: </u>
10,000 products sold as $9 would fetch $90,000 in revenue
Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs
=>The solution is correct
Its capacity to perform the functions you or a person want it to
Answer:
D) 475 million
Explanation:
Unemployment is the people who is not currently working and searching for the job. These are the part of Labor force. So unemployment rate is as follows:
Unemployed Worker = 19 million
Unemployment rate = 4%
Unemployment rate = Unemployed worker / Labor force
4% = 19 million / Labor Force
Labor Force = 19 million / 4%
Labor Force = 475 million
