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Svetradugi [14.3K]
3 years ago
13

Wimpy Inc. produces and sells a single product. The selling price of the product is $185.00 per unit and its variable cost is $5

5.50 per unit. The fixed expense is $404,670 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,348,900 $944,230 $578,100 $404,670
Business
1 answer:
Aleonysh [2.5K]3 years ago
7 0

The formula for the calculation is

<u>CM ratio = Unit contribution margin ÷ Unit selling price </u>

The break-even in monthly dollar sales is closest to $578,100

Explanation:

The formula for the calculation is

<u>CM ratio = Unit contribution margin ÷ Unit selling price </u>

<u></u>

<u>Given that </u>

<u>Selling price of the product=</u>$185.00 per unit

variable cost=$55.50 per unit

fixed expense=$404,670 per month

<u></u>

= ($185.00 per unit − $55.50 per unit) ÷ $185.00 per unit

= $129.50 per unit ÷ $185.00 per unit = 0.70

<u>Dollar sales to break even = Fixed expenses ÷ CM ratio </u>

= $404,670 ÷ 0.70

= $578,100

The break-even in monthly dollar sales is closest to $578,100

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7 0
1 year ago
At some colleges and universities, economics professors receive higher salaries than professors in some other fields.
koban [17]

Answer:

Explanation:

At some colleges and universities, economics professors receive higher salaries than professors in some other fields.

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Economists have a higher opportunity cost working in academia than professors in other fields because in certain fields that are different from academic,there is a lack of labor opportunity for professor and even when such arise ,they are difficult to get and another reason may be that economists who are good in some fields may employ themselves in other firms with higher wages because of their real life first hand experience, even when some colleges and universities wants to hire them, got to spend a greater amount of money than for professors in some other fields.

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3 0
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False

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3 years ago
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nata0808 [166]

Answer:

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Answer:

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