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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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Answer:

b. Would like to compete

d. specilize in production

Explanation:

Competition is when businesses selling similar products, in the same market, try to outsell each other through winning more customers.  When businesses compete, consumers benefit through fair prices and higher quality goods. Competing businesses innovate and create products with a high utility value to attract more customers. As a result, they offer customers products and services of high quality.

A business that engages in a specialization produces fewer varieties of products.  It focuses on manufacturing goods and services that it has a comparative advantage. Due to specialization, the firm and its employees become experts in producing its products of choice. Consequently, it offers goods and services that are of a higher quality than a business that does not specialize.

4 0
3 years ago
Read 2 more answers
Determine whether the following arguments are best interpreted as being inductive or deductive. Also state the criteriayou use i
eduard

Answer:

Congruent triangles has the two angles of one of their sides equal

This means if a triangle side has angles of 30 and 60 degrees the other triangle also has 30 and 60 degrees.

An isoceles triangle will have 2 angles of the same degree. Thus, If triangle A is isoceles then, two angles add up to make the third equal to one these two.

We should remember that angles inside a triangle always add up to 180ª

2a +b = 180

a + b = 180 - a

if the other triangle has 2 angles mathing the isoceles triangle, then it is also  an isoceles.

Uploaded an image of an isoceles triangle to understand better.

Explanation:

6 0
3 years ago
The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the dema
timama [110]

Answer:

Downward sloping

Explanation:

According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.

Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.

Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.

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3 years ago
Ezra runs a gyro stall at a farmers market
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The rest of the question?
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3 years ago
Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
Lynna [10]

Answer:

a. 50%

Explanation:

Model P-4 requires 30 minutes of machine time.

A machine hour consists of 60 minutes

Calculating the machine time of Model P-4 in terms of percent of machine hour:

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