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Lostsunrise [7]
3 years ago
14

A firm is deciding between two different sewing machines. Technology A has fixed costs of $500 and marginal costs of $50 whereas

Technology B has fixed costs of $250 and marginal costs of $100. ​If the price is $60 per unit, what is the break even amount of units for technology A?A. ​50 ​B. 100 ​C. 150​D. None-They would have to shut down
Business
1 answer:
Alexandra [31]3 years ago
4 0

Answer:

A. 50 units

Explanation:

Break even point (units) = Fixed cost / (Selling price - Variable cost)

= $ 500 / ($ 60 - $ 50)

= $ 500/$10

= 50 units

The break-even point is derived by dividing the fixed costs of production by the price per unit - the variable costs of production. Break-even point is the level of production at which the costs of production equal the Income for the particular product

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This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa
allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

Explanation:

As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0
3 years ago
Probett’s Garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 pe
faust18 [17]

Answer: $730.2

Explanation:

Let the total cost of cleaning clothes = X

Other variables include:

Total cost of boxes = $6×120

=$720

Ordering cost =$3

Holding costs = (10/100 ×6)12

=$7.2

Total costs of cleaning clothes =

The cost of boxes+ordering cost+holding cost

=720+3+7.2 = $730.2

3 0
3 years ago
Negotiated transfer prices
horrorfan [7]
The devision agrees a transfer price between themselves. This price may not reflect opportunity cost by producing and selling products. Reflects bargaining prowess of individual mangers.
6 0
3 years ago
darby writes a check to education loan management inc, that is drawn on darbys account at federal bank. if thr bank does not acc
Aleksandr-060686 [28]
<span>Liability is on Darby because they were the one to write the original check and give it to the education loan management inc. Since the check wasn't accepted they have to take responsibility and liability for the fact that it was not accepted.</span>
5 0
3 years ago
What does the Lorenz Curve illustrate about the economy?
Alex_Xolod [135]

Answer:

Lorenz curve can be understood as a graphical representation of distribution of wealth or income among the population in a given economy.

Explanation:

Lorenz Curve was proposed by Max O. Lorenz in the year 1905 to represent inequality in the distribution of income among the given population. This curve illustrates that the distribution of wealth is not equal, where one section of the population has all the wealth or income of the economy and the other section of the population is left with none. Whereas in the case of perfect equality, each section of the population should receive an equal amount of wealth of the economy. This means that N% of the society should always have N% of income and not more and not less than that. Thus, this situation is hypothetical and thus, the idea of the Lorenz Curve comes into consideration.

6 0
3 years ago
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