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Delicious77 [7]
2 years ago
7

Mary Willis is the advertising manager for Sheffield Shoe Store. She is currently working on a major promotional campaign. Her i

deas include the installation of a new lighting system and increased display space that will add $24,600 in fixed costs to the $128,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Collapse question part (a) Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used. (Round answers to 0 decimal places, e.g. 1,225.) Current break-even point pairs of shoes New break-even point pairs of shoes
Business
1 answer:
Setler [38]2 years ago
8 0

Answer:

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

Explanation:

<em>The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total fixed costs. </em>

<em>To calculate the break even point in units, we use the formula below: </em>

<em>Break-even point = Fixed cost for the period / selling price - variable cost</em>

Current break-even point = 128,000/(20-12)

                                      = 16,000  units

With Mary's idea, the break-even point will be

New break-even point = ( 128,000+ 24600)/(19-12)

                                    = 21,800  units

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

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3 years ago
Which of the following would cause the supply curve to shift to the right?
AnnZ [28]

Answer:

Technology improves production.

Explanation:

Supply refers to the quantity of goods and services produced and offered to the market for sale.

There are several factors that could cause the supply curve to shift to the right, one of which is technology improves production. An improvement in technology will phase out manual or slow process of production hence shifts supply curve to the right.

When government increases tax on a business, if will affect the income that should have accrued to the business hence supply curve inward. An increase in input prices will affect production cost thereby shifting supply to the left. Also when there is a decline in the numbers of consumers, it will shift supply curve inward because it is these consumers that will purchase whatever that is produced and supplied to the market.

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3 years ago
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6 0
3 years ago
A seller wants to break even after the broker’s commission of 5% and loan balance of $300,000 are paid. At what price must the h
zhuklara [117]

At $315,789 the house must be sold after taking into consideration the broker's commission.

<h3>What do you mean by broker’s commission?</h3>

A broker’s commission is a brokerage firm employee who is compensated for the number of trades they execute for clients.

These brokers typically earn a percentage of the assets traded by their clients, which means that the more a client trades, the more money they make.

In order to calculate the selling price, we have to start with 100% minus a 5% commission, which is 95% or .95.

Take $300,000 and divide this amount by .95.

This will give the amount or the price at which we can sell the house which is $315,789.

Thus, At $315,789 the house must be sold after taking into consideration the broker's commission.

To learn more about  broker's commission refer:

brainly.com/question/14838861

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1 year ago
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Zielflug [23.3K]

Answer:

inversely related.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

An interest rate can be defined as an amount of money that is charged as a percentage of the total amount of money borrowed or securities purchased from an individual or a financial institution.

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7 0
2 years ago
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