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satela [25.4K]
3 years ago
11

A product is currently made in a process-focused shop where fixed costs are $10,000 per year, and variable cost is $50 per unit.

The firm sells the product for $250 per unit. What is the break-even point for this operation?
20 units
30 units
60 units
50 units
Business
1 answer:
Goryan [66]3 years ago
7 0

Answer:

Break even point will be 50 units

So option (D) will be correct answer

Explanation:

We have given fixed cost = $10000 per year

Variable cost is $50 per unit

Selling price = $250 per unit

We have to find the break even point for the operation

We know that break even point is equal to

Break even point =\frac{fixed\ cost}{selling\ price-variable \ cost}=\frac{10000}{250-50}=\frac{10000}{200}=50unit

So break even point will be equal to 50 units

So option (D) will be correct answer

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You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know
babymother [125]

Answer:

Sharpe ratio = 0.20

Treynor ratio = –0.005

Explanation:

Note: See the attached excel file for the calculations of average rate of returns, standard deviations and beta used in the calculation below.

a. Calculation of Sharpe ratio

Sharpe ratio refers to a  investment measurement that employed to measure the an investment actual that has been adjusted for the risk associated with the investment.

Sharpe ratio can be calculated using the following formula:

Sharpe ratio = (Average fund rate - Average Risk Free rate) / Standard deviation of fund rate = (5.46% - 2.40%) / 15.05% = 0.20

a. Calculation of Treynor ratio

Treynor ratio refers to investment measurement that is calculated to show the risk of certain investments after the volatility of the market has been taking into consideration.

Treynor ratio can be calculated using the following formula:

Treynor ratio = (Average market return rate - Average Risk Free rate) / Beta = (1.96% - 2.40%) / 87.53% = –0.005

Download xlsx
5 0
3 years ago
A ____ is a source of revenue flowing into the firm.
diamong [38]
The answer is revenue stream.
3 0
3 years ago
When Bill's Diner moves from the production combination of 35 burgers and 25 hotdogs to the combination of 25 burgers and 65 hot
Aleonysh [2.5K]

Answer:

<h2>In the context of Consumer Theory or Indifference Curve involving two goods,the opportunity of any one good is computed by how much of the other good is foregone or sacrificed to purchase one more unit of that particular good.</h2>

Explanation:

  • In this instance,when Bill's diner consumes 35 burgers and 25 hotdogs,its opportunity cost of additional hot dog=\frac{35}{25} =\frac{7}{5}=1.4.Therefore,initially Bill diner's opportunity cost of an additional hot dog is 1.4 units of burger.
  • Now,when Bill's diner chooses to consume a combination of 25 burgers and 65 hot dogs,its opportunity cost of additional hot dogs=\frac{25}{65} =\frac{5}{13} =0.385 approximately.Hence,Bill's diner is willing to sacrifice approximately 0.385 units of burger to consume an additional unit of hot dog.
  • Now,due to the change in consumption combination,the change in opportunity cost of additional hot dog=(1.4-0.385)=1.015 units of burger.Notice,that here the opportunity cost of additional hot dog decreased from 1.4 units of burger to 0.385 units of burger as Bill's diner changed the consumption combination of both burgers and hot dogs.
7 0
3 years ago
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units
viva [34]

Answer:

WA      1,682

LIFO      910

FIFO  2,260

Explanation:

\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

<u>Then, we calculate for each method:</u>

Weighted average:

cost of goods / available units = 10,190 / 970 =  10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 =  1,350

70 x 13 =     910

Total       2,260

5 0
3 years ago
Century Real Estate’s primary broker is John Kerr. John is licensed as the broker of that company and he is licensed as a broker
fomenos

Answer:

The broker is doing two different jobs; so it is okay to have two different licenses.

Explanation:

In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.

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3 years ago
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