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AleksandrR [38]
4 years ago
8

If Highway 55 Studios can reduce fixed expenses by ​, by how much can variable expenses per unit increase and still allow the co

mpany to maintain the original break even sales in​ units

Business
1 answer:
solniwko [45]4 years ago
8 0

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by  : $37.25 - $35 = 2.25

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The firm shouldn't purchase the machine because the IRR is less than the required minimum

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The amount of taxpayers that are part of the "older generation" is slowly rising and is higher than the amount in 1997.

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The chart on the other hand shows a <em>increase of percentage of older people</em>, which leaves a large gap in between the surplus and the spending, leading to a decrease of funding for the government. If this continues, the government would lose money, and would have to cut programs or face collapse. To fix this, they either have to, like stated above, cut programs, or give more taxes. Both are unacceptable to the American Public, which is what makes the government, as well as the average citizen, worried about the US government's funding surplus.

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