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damaskus [11]
3 years ago
6

Beasley Company currently sells its products for​ $30 per unit. Management is contemplating a​ 10% increase in the selling price

for the next year. Variable costs are currently​ 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year​ (the company will pay the same amount for variable costs next​ year). Fixed expenses are​ $68,250 per year. What is the breakeven point in units at the anticipated selling price per unit next​ year?
Business
1 answer:
Ray Of Light [21]3 years ago
7 0

Answer:

Explanation:

Selling price per unit (next year) = 30 + 10 % of 30 = $33

Variable cost per unit (next year) = 30 * 40 % = $12

Contribution per unit (next year) = Selling price per unit (next year) - Variable cost per unit (next year) = 33 - 12  = $21

Fixed expenses = $68,250

Break even point (in units) = Fixed expenses / Contribution per unit.

Break even point (in units) = 68,250 / 21 = $3,250

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Hoochie [10]

Answer :

Net present value = -$30,284.90

Net present value = -$15,699.78

Explanation :

As per the data given in the question,

Particulars                 Amount     Factor              Purchase

Cost of new vehicle -$33,500    1                    -$33,500.00

Annual Maintenance -$1,200   3.605             -$4,326.00

Less : Salvage value    $13,300 0.567              $7,541.10

Net Present value                                             -$30,284.90

Particulars                  Amount       Factor           Purchase

Cost of new vehicle       $0                1                      $-

Annual Maintenance -$4,355       3.605          -$15,699.78

Less : Salvage value        $0             0.567              $-

Net Present value                                               -$15,699.78

We simply multiplied the amount with the factor so that the purchase amount could come

5 0
3 years ago
If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors r
satela [25.4K]

Answer:

Increase

Explanation:

Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase

8 0
2 years ago
Once mylie's total utility begins to decrease, does each additional singing of the song hurt more than the previous one or less
True [87]

When total utility starts to decrease, each additional song hurts MORE than the previous song.

6 0
2 years ago
Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve t
just olya [345]

Answer: None of the above

Explanation:

All of the above are correct.

For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.

Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.

Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.

Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.

They are all true.

3 0
3 years ago
Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar
andrey2020 [161]

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 =  $16

Contribution margin = $16

3 0
3 years ago
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