Answer:
c. It will increase.
Explanation:
Break even point is the level of activity at which a firm neither makes a profit nor a loss.
<em>Break - even units = Fixed Costs ÷ Contribution per unit </em>
therefore,
<u>Existing break-even point in units :</u>
Break - even units = $16,000 ÷ ($40 - $18) = 727.27 or 728 units
<u>New break-even point in units :</u>
Break - even units = $21,000 ÷ ($40 - $16) = 875 units
Conclusion :
The results show that break-even point in units will increase from 728 units to 875 units as a result of the changes
Answer:
85 less rooms this year than last
Explanation:
The number of rooms (n) occupied for this month last year is given by the Room Revenue ($231,470) divided by the daily rate ($76.72):
The number of rooms occupied last year is larger than the number of rooms occupied this year by:
The hotel occupied 85 less rooms this year than last.
Answer: $204,800
Explanation:
When a good is shipped FOB shipping point, it means that the buyer assumes responsibility for the goods as soon as the goods reach the place they will be shipped from. The purchase from Pelzer should therefore be included in inventory because it has already been shipped.
A good shipped FOB Destination means that the buyer only assumes responsibility after the goods have been delivered to them. As the sale to Alvarez was still in transit, it is still the responsibility of Marigold and should be included in inventory.
Inventory is therefore:
= 155,000 + 28,000 + 21,800
= $204,800
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that these processes are known as outsourcing. This term or process is when a company hires another company in which the hired company agrees to be responsible for an activity or process that could be done internally but which the company has decided not to. Such as in this scenario since a third party (completely unrelated company) is handling all of the logistics division of the company.
If a shopkeeper starts to sell the new football, their weekly margins would be:
300 x 40 = $12,000
However, the sales of the lower cost footballs will decrease by:
100 x 20 = $2,000 every week
Hence, the total margin we can generate by selling every week by selling the new footballs is:
12,000-2,000 = $10,000
This means the shopkeeper should actually start selling new footballs since their shop will become more profitable
