All categories

3 years ago

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage

Mathematics

1 answer:

Mrrafil [7]3 years ago

7 0

Answer:

Giving the following information:

Units sold= 450,000

Total Sales= $12,150,000

Total variable cost= $6,925,500

Total fixed cost= $3,242,673

First, we need to calculate the unitary selling price and variable cost. Then, we calculate the contribution margin.

Selling price= 12,150,000/450,000= $27

Unitary variable cost= 6,925,500/450,000= $15.39

Contribution margin per unit= 27 - 15.39= $11.61

To calculate the contribution margin ratio, we need to use the following formula:

Contribution margin ratio= contribution margin/ selling price

Contribution margin ratio= 11.61/27

Contribution margin ratio= 0.43

To calculate the break-even point both in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 3,242,673 / 11.61= 279,300 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 3,242,673/0.43= $7,541,100

Finally, we need to incorporate the desired profit to the break-even point formula:

Break-even point in units= (3,242,673 + 426,087) / 11.61

Break-even point in units= 316,000 units

Step-by-step explanation:

You might be interested in

Mrs. Ramiriz is making pies to sell at the local farmer’s market. It costs her $5 to make each pie, plus a one-time cost of $30

gregori [183]

The answer is 5x + 30 = 12x

x - the number of pies

It costs her $5 to make each pie, plus a one-time cost of $30 for baking supplies:
COST: f(c) = 5x + 30

She plans to sell the pies for $12 each:
PROFIT: f(p) = 12x

To find the number of pies she needs to sell to break even:
f(c) = f(p)
5x + 30 = 12x

5 0

3 years ago

Yan is climbing down a ladder. Each time he descends four rungs on the ladder, he stops to see how much farther he has to go

anastassius [24]

Question:

Yan is climbing down a ladder. Each time he descends 4 rungs on the ladder, he stopped to see how much farther he has to go. If Yan made eight stops with no extra steps, which expression best shows another way to write the product of the number of ladder rungs that Yan and climbed?

4+4+4+4

8+8+8+8

(-1)(4+4+4+4)

(-8) + (-8) + (-8) + (-8)

Answer:

$Total = (-8) +(-8) +(-8) +(-8)$

Step-by-step explanation:

Given

$Rungs = -4$ --- It is negative because he is climbing down

$Steps = 8$

Required

An expression for the number of rungs climbed

To do this, we simply multiply the number of rungs by the steps taken.

$Total = Rungs * Steps$

$Total = -4 * 8$

This can be rewritten as:

$Total = -8 * 4$

The product, when written as sum is:

$Total = (-8) +(-8) +(-8) +(-8)$

8 0

3 years ago

Which of the following is the solution to 9|x +4|>54 ?

horsena [70]

Answer:

x>2 or x<-10

Step-by-step explanation:

9|x +4|>54

Divide each side by 9

9/9|x +4|>54/9

|x +4|>6

There are two solutions, one positive and one negative

x+4 >6 or x+4 < -6

Subtract 4 from each side

x+4-4 >6-4 or x+4-4 < -6-4

x>2 or x<-10

4 0

3 years ago

Half of a number is 16. Write an equation and solve to find the number?

Kobotan [32]

Answer:

16 / 2, 8

Step-by-step explanation:

Half always means divide by two. 16 divided by 2 is 8. That last sentence is also the equation.

7 0

3 years ago

Read 2 more answers

I NEED HELP SOMEONE ASAP

Dvinal [7]

Answer: x⁴y²⁰

Step-by-step explanation: Distribute the exponent ⁴ over the parentheses

(x y⁴)⁴ becomes x⁴y¹⁶ (multiply exponents)

then take the 4th root of y¹⁶ (divide the exponent of the radicand by the index) ⁴√y¹⁶ becomes y⁴

Then multiply the factors. Add exponents

x⁴y¹⁶ * y⁴ becomes x⁴y²⁰

8 0

3 years ago