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Harman [31]
3 years ago
12

In 2016, teller company sold 3,000 units at $600 each. variable expenses were $420 per unit, and fixed expenses were $270,000. t

he same selling price, variable expenses, and fixed expenses are expected for 2017. what is teller’s break-even point in sales dollars for 2017?
Business
1 answer:
Anit [1.1K]3 years ago
6 0
Assuming that you have the values for the year 2017, the break-even point would be 1500 units for the year 2017. To calculate this, we use the idea that at the breaking point, total sales is equal to the total cost or expenses made. Which would be:

selling (x) = fixed + variable (x)

x = fixed / (selling - variable)
x = 270000 / (600-420)
x = 1500 units
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Answer:

They will decrease as production decreases

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Total Variable cost is sum of all the cost incurred in production of total units of goods produced. It is directly proportional to the number of units of goods produced. It helps to analyze cost structure of goods and then decide on pricing strategy of the goods. Some of the examples of variable cost can be packaging cost, raw material’s cost.

Mathematically it can be defined as  

Total variable cost = Total units of goods produced *  variable cost for one unit of good produced  

Hence from the given option  They will decrease as production decreases as the number of units of goods produced will decrease and hence lesser raw material and packaging will be required to produce the goods.

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The factors of production will influence an items' Availability.
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B) Inventory turnover ratios

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Which of the following statements is true regarding the Unrealized Loss on Investments account
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Suppose Clampett, Inc. terminated its S election on August 28, 2018. At the end of the S corporation's short tax year ending on
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correct option is $5,750

Explanation:

given data

amounts were both zero

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to find out

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solution

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