1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex Ar [27]
3 years ago
10

Cullumber Company has a unit selling price of $650, variable costs per unit of $450, and fixed costs of $319,800. Compute the br

eak-even point in units using (a) the mathematical equation and (b) unit contribution margin.
Business
1 answer:
saveliy_v [14]3 years ago
4 0

Answer:

(a)

Mathematical Equation for break-even

F = QP - QV

Where

F = fixed cost

Q = Break-even quantity

P = Selling price

V = Variable cost

F = Q ( P - V )

Q = F / ( P - V )

Q = $319,800 / ( $650 - $450 )

Q = $319,800 / $200

Q = 1,599 units

(b)

Contribution Margin = Price per unit - Variable cost per unit

Contribution Margin = $650 - $450 = $200

Break-even Point in Units = Fixed Cost / Contribution margin per unit

Break-even Point in Units = $319,800 / $200 = 1,599 units

Explanation:

Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.

Contribution per unit method use the contribution of each unit to calculate the break-even point.

You might be interested in
Bass new product forecasting model is used for estimating long term sales potential of a product True False
kobusy [5.1K]

Answer:

True

Explanation:

The Bass New forecasting model is a forecasting model that is commonly used to estimate the sales of a product at a certain in future and it is used for highly durable goods.

The bass new forecasting model wad developed by Frank Bass and it has a formula

<u> f ( t )   </u>    =   p + qF ( t )

1 - f ( t )

where:

f ( t )  is the change of the installed base fraction

F(t) is the installed base fraction

p is the coefficient of innovation

q is the coefficient of imitation

Cheers.

7 0
3 years ago
How does excessive money in the economy lead to inflation?
ANTONII [103]
Wish I could help sorry
6 0
4 years ago
An account becomes uncollectible a. at the end of the fiscal year b. There is no general rule for when an account becomes uncoll
Nonamiya [84]

Answer:

b. There is no general rule for when an account becomes uncollectible.

Explanation:

Accounts uncollectible are the debts and loans which do not have any chance of being paid. There are many other reasons by which the account becomes uncollectible. The inability of the debtor, the bankruptcy of the debtor and the fraud conducted by the debtor are some of the reasons why accounts become uncollectible.

5 0
3 years ago
________ refers to the impaired decision making that occurs in a team when making the right decision is less important than main
aleksandrvk [35]

Answer:

competition

Explanation:

team members be competing against each other

5 0
3 years ago
Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when comp
FinnZ [79.3K]
I believe the answer might be a proportional tax.
4 0
3 years ago
Other questions:
  • Which of the managerial roles is the figurehead?
    11·1 answer
  • Goldberg Corporation has three production departments A, B, and C. Goldberg Corporation also has two service departments, Admini
    12·1 answer
  • When targeting customers of the consumer population to market a
    6·1 answer
  • PowerCruise, a holiday cruise firm, recently offered its existing customers, who had registered for a two-year membership, an ex
    7·1 answer
  • In the financial statement audit of a nonpublic company, the auditor decides to perform tests of the controls related to the occ
    7·1 answer
  • In early America, belief in liberty to pursue happiness, unfettered by government intervention, resulted in the greatest prosper
    15·1 answer
  • On june 15, 2018, sanderson construction entered into a long-term construction contract to build a baseball stadium in washingto
    11·1 answer
  • Justin is taking a class in which he is working on his future career goals. His teacher asked him to write an essay answering qu
    14·2 answers
  • what ideas do you feel the organization should have the opportunity to mandate without union involvement?
    13·1 answer
  • Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!