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Rus_ich [418]
4 years ago
12

Eaton Tool Company has fixed costs of $340,400, sells its units for $80, and has variable costs of $43 per unit. a. Compute the

break-even point. b. Ms. Eaton comes up with a new plan to cut fixed costs to $270,000. However, more labor will now be required, which will increase variable costs per unit to $46. The sales price will remain at $80. What is the new break-even point? (Round your answer to the nearest whole number.)
Business
1 answer:
blsea [12.9K]4 years ago
3 0

Answer and Explanation:

The computation is shown below:

But before reaching to the final answers, first determine the contribution margin per unit which is

a. Contribution margin per unit =Sales-Variable cost  

= $80 - $43

= $37 per unit

Now

Breakeven = Fixed expenses ÷ Contribution margin

= $340,400 ÷ $37

= 9,200 units

b.Contribution margin = Sales - Variable cost  

= $80 - $46

= $34 per unit

Now

New Breakeven = Fixed expenses ÷ Contribution margin

= $270,000 ÷ 34

= 7,941 units

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Vika [28.1K]

Answer:

Check the explanation

Explanation:

In the field of economics, to draw a graph that will show a cost curve of any item will involve the costs of production as a function of the overall quantity that was produced. When there’s a free market economy, productively effective and efficient firms optimize their production procedures by reducing their cost consistent with each potential level of production, thereby resulting into a cost curve.

Kindly check the attached images below to see the full explanation and the graphical presentation of the total cost curve.

7 0
4 years ago
You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is expected to produce cash infl
Lelu [443]

Answer:

194,112.8

Explanation:

The computation of  Net Present Value is shown below:-

Net Present Value = Present value of cash inflows - Present value of Cash outflows

= -757,000 + 396,000 × PVAF (12%, 3 years)

= -757,000 + 396,000 × 2.4018

= -757,000 + 951,112.8

= LLC 194,112.8

= 194,112.8

Therefore for computing the net present value we simply applied the above formula.

8 0
3 years ago
Which of these fees is paid at the closing when a home purchase is finalized?
sleet_krkn [62]
<u>d.) Title insurance</u> is one of the fees that is paid at the closing of a home purchase when it is finalized.

There are two types of title insurance.
1) Lender's Policy Title Insurance - this is an insurance to assure the lender the you own the home and that the mortgage applied is a valid lien. This happens when you buy a house through bank financing.
2) Owner's Policy Title Insurance  - this is an insurance policy that protects you as the owner of the house when third party contests your ownership of the house.

8 0
3 years ago
A winning formula for many Answer E: Luxury brands is craftsmanship, heritage, authenticity, and history, often critical to just
Fittoniya [83]

Correct question:

A winning formula for many ________ brands is craftsmanship, heritage, authenticity, and history, often critical to justifying a sometimes extravagant price.

A) design

B) non durable

C) durable

D) ingredient

E) luxury

Answer:

E, luxury

Explanation:

When a product is being purchased irrespective of it price, the manufacturer is said to have found a winning formula.

from the above question, a luxury item that is authentic with an history behind it as well as exccellenct craftsmanship amongst other things ensure that the item is continually sold no matter what price it is.

Cheers.

4 0
4 years ago
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zloy xaker [14]

Answer: Routine problem solving

Explanation:

As stated in the question the customer buys flour and soap they are familiar with when making purchase without spending time to evaluate alternatives, this is a typical example of routine problem solving in making purchase decision.

Routine problem solving is a form of decision making in purchase where consumers purchase products they are familiar with, without paying much considerations to other options available.

3 0
3 years ago
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