1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Sasha, a wealthy industrialist, owns several coffee plantations in Brazil. Encouraged by the rising sales figures in the domesti
Alenkinab [10]

Answer:

d. Exporting

Explanation:

Exporting -

It refers to the practice of selling the goods or services produced by the country to any other country in the world is referred to as exporting .

The practice of exporting is exactly opposite of the process of importing .

The country selling the goods are referred to as the exporter and the country buying the goods or services are referred to as the importer .

Exporting is one of the very oldest method of transferring goods and services on a very large scale .

Hence , from the given scenario of the question ,

The correct option is d. Exporting .

5 0
4 years ago
Lawrence needs to respond to a coworker's email. In a plain text email,the coworker has asked Lawrence a number of questions.Law
Gwar [14]

The color of the text

Hope this helps :)

6 0
3 years ago
Read 2 more answers
What are some of the benefits of regional integration?
Fiesta28 [93]

Answer:

1. Benefits Of Regional Economic Integration

2. Enhanced political cooperation. Several nations usually have a much larger political influence as compared to the influence that each individual country would have.

3. Creates trade. Member countries in a regional economic integration agreement have a wider choice of services and goods that were previously unavailable.

<em>4. Employment prospects. </em>

Explanation:

The benefits of regional integration can easily identify. There are economic benefits such as additional trade, improved quality, increased imports and exports, high-quality international relations and an integrated market. Regional integration can enhance the general quality of life for the citizens of those states.

3 0
3 years ago
As per the ________, the entity will remain in operation for the foreseeable future.
bulgar [2K]

As per the going concern assumption, the entity will remain in operation for the foreseeable future. A key accounting theory known as the "going concern assumption" states that a company must be financially stable enough to continue operating through the years.

This suggests that a corporation has a lower likelihood of going out of business. In order to stay in business and avoid bankruptcy, it still uses its current assets to pay commitments. Additionally, the company can continue to make profits because it doesn't intend to or won't be required to liquidate them and is anticipated to remain in operation for at least a year.

A company's break-up value is less than its value as a continuing concern. One of the fundamental tenets of generally accepted accounting standards is this (GAAP). When potential lenders or investors look at a company's financial accounts, the going concern assumption might give them insight into the business. They may be less ready to invest in the company or lend money to it if they believe that it will fail financially or in another way during the next 12 months.

Learn more about going concern assumption here brainly.com/question/14511295

#SPJ4

8 0
2 years ago
The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
Rom4ik [11]

Answer:

b. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.

Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.

For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.

The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.

7 0
3 years ago
Other questions:
  • One of the claims of ______ is that prejudice stems from people's desire to maintain dominance and social hierarchies.
    6·1 answer
  • Companies engaged in a single line of business most commonly utilize an organizational structure that can be:
    15·1 answer
  • If there was a flood that caused damage to your car, what kind of coverage must you have in order for the insurance company to h
    9·1 answer
  • Choose the career option that requires the most education.
    7·2 answers
  • Time-study analysis could best be summarized by which of the following descriptions?
    9·1 answer
  • Item 12Item 12 During October, a firm had the following transactions involving revenue and expenses. Paid $1,275 for rent for Oc
    15·1 answer
  • Even the best marketing communication can be wasted if the sender does not first
    7·1 answer
  • A financial cooperative is a type of financial institution that is owned and operated
    14·1 answer
  • The marketing manager of Rues Golf Club finds that the club can increase its market share, and become the industry leader if it
    11·1 answer
  • What is your expectation of this subject industrial psychology
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!