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Anna71 [15]
3 years ago
11

ABC, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is s

old for $5.00 per unit and the company desires to earn a target profit of $10,000. What is the amount of sales that will be necessary to earn the desired profit? (Do not round intermediate calculations.)
Business
1 answer:
Alex777 [14]3 years ago
5 0

Answer:

The amount of sales that will be necessary to earn the desired profit is 16000 units

Explanation:

To get the amount of sales to earn $10000, we make the following equation.

Profit =Sales -variable cost-fixed cost

Profit=10000

Sales=$5.00x

Variable cost= $2.50x

Fixed cost=$30,000

Replacing,

10000=5x-2.5x-30000

10000+30000=2.5x

x=40000/2.5

x=16000

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An investor purchased 100 shares of stock X at \small 6\frac{1}{8} dollars per share and sold them all a year later at 24 dollar
Salsk061 [2.6K]

Answer:

option (C) 280%

Explanation:

Number of shares of stock X purchased = 100

Purchasing cost of share = \$6\frac{1}{8} =\frac{49}{8}

Selling cost of stocks = $24 per share

Brokerage paid = 2%

Now,

The total purchasing cost involved = 100\times\frac{49}{8} + 2% of 100\times\frac{49}{8}

= 612.5 + 0.02 × 612.5

= $624.75

also,

Total income from sales of stocks

= Total selling cost of shares - brokerage paid

= $24 × 100 - 2% of Total selling cost

= $2400 - ( 0.02 × $2400 )

= $2400 - $48

= $2,352

now,

The investor's percent gain on this investment = \frac{\textup{Income-invested amount}}{\textup{Invested amount}}\times100\%

= \frac{\textup{2,352 - 624.75}}{\textup{624.75}}\times100\%

= \frac{\textup{1727.25}}{\textup{624.75}}\times100\%

= 276.47% ≈ 280%

Hence, the correct answer is option (C) 280%

7 0
3 years ago
If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin
Dmitrij [34]

Answer:

reduce output

Explanation:

The marginal cost ($26) is greater than the marginal revenue ($25). In order to maximise profit, marginal cost should he reduced up to the point where marginal cost equals marginal benefit.

A firm should shutdown, reduce production to zero if average variable cost is greater than price but in this question, the firm shouldn't shut down since price ($25) is greater than average variable cost ($24).

I hope my answer helps you

5 0
3 years ago
A benchmark market value index is comprised of three stocks. yesterday the three stocks were priced at $12, $20, and $60. the nu
Olenka [21]

Answer: The one day rate of return on the stock is 1.49%

We arrive at the answer in the following manner:

First we need to calculate yesterday's and today's index values.

For that we need to find weights of each day based on market capitalization.

Market Capitalization _{ a stock} = Market Price * No .of outstanding shares

The weight of a company in the index is calculated by dividing the market capitalization  of a company by the total market capitalization of all the companies whose shares are a part of the index.

Weight_{Company A} =\frac{Mkt Cap of company A}{Total Market cap}

Then, we multiply the share price of each company with their respective weights and find the total to arrive at the index value for one day.

<u>Yesterday's Index Value</u>

Stock        Price         No. of shares      Mkt Cap  Weight  Weight*Price

A               12               600000        7200000      0.25      2.96 (0.25*12)    

B               20               500000       10000000    0.34      6.85(0.34*20)

C               60               200000       <u>12000000</u>     <u>0.41</u>      <u>24.66  </u>(0.41*60)

Total                                                 29200000     1.00      34.47

We calculate the weight for stock A as follows:

Weight_{A} =\frac{72,00,000}{2,92,00,000} = 0.2466 = 0.25

We calculate the weights of the remaining stocks in a similar manner.

Please note that the sum total of all weights must add up to 1.

The sum total of the last column (Price * Weight) is yesterday's index value.

We repeat the same steps with today's market price to arrive at today's index value.

<u>Today's index Value</u>

Stock        Price   No. of shares       Mkt Cap     Weight    Weight*Price

A               16               600000       96,00,000     0.31        4.95 (0.31*16)    

B               18               500000       90,00,000     0.29       5.23  (0.29*18)

C               62               200000    <u>1,24,00,000</u>     <u>0.40</u>     <u>24.80</u>(0.40*62)

Total                                                3,10,00,000     1.00     34.98

<u>One-day Rate of Return</u>

We can calculate the one day rate of return on the index as follows:

Rate of return = [\frac{(Today's index value - Yesterday's index value}{Yesterday's index value}) * 100

Rate of Return = ( \frac{34.98 - 34.47}{34.47}) * 100

Rate of return = (\frac{0.51}{34.47}) *100

Rate of return = 0.01494 or 1.49%

8 0
3 years ago
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol
Oliga [24]

Answer:

c. the entry of new firms

Explanation:

  • The entry of the new firms in the market creating a  market supply curves to shift to the right side and as the curve shifts the markets price then starts to decline with it  
  • This declines the economic profits in the new and the existing firms as long as the profits exists  in the markets and entry will continue to shift to supply to the right.
  • The diversification of the melt and the fall in the monopoly of the firms start to take place.  
  • They take up resource ownership and technological developments. In short, they increase the competitiveness and bring rivalry into the market.
7 0
3 years ago
compare how the total amounts of e-waste generated, e-waste disposed of as trash, and e-waste recycled have changed over time. b
ArbitrLikvidat [17]

The overall amount of e-waste generated steadied or slightly dropped, while the amount of e-waste recycled continuously grew.

<h3>What is meant by e-waste?</h3>

Electronic garbage, sometimes known as e-waste, refers to outdated electrical or electronic equipment. E-waste includes used electronics that are intended for recycling through material recovery, refurbishment, reuse, resale, or disposal.

Electronic items that are nearing the end of their "useful life" are sometimes referred to as "e-waste." Common electronic products include computers, televisions, VCRs, stereos, copiers, and fax machines. Numerous of these items can be recycled, repaired, or reused.

Between 2010 and 2013, the overall amount of e-waste generated steadied or slightly dropped, while the amount of e-waste recycled continuously grew.

To learn more about e-waste refer to:

brainly.com/question/15549433

#SPJ4

6 0
1 year ago
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