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Ivenika [448]
3 years ago
11

Isla is a marketing manager for Marshall Manufacturing. Her boss has asked her to evaluate a new product idea. One of the things

Isla wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and the variable cost of producing each unit.
True or False?
Business
1 answer:
jekas [21]3 years ago
4 0

Answer:

true

Explanation:

the formula used to determine the break even point in units is:

  • break even point in units = total fixed costs / contribution margin

where contribution margin = selling price - variable costs

The break even point refers to the output level where revenues = costs. Any output level above the break even point results in profits for the company, while any output level below the break even point results in losses.

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Varto Company has 12,600 units of its sole product in inventory that it produced last year at a cost of $31 each. This year’s mo
grandymaker [24]

Answer:

It is more profitable to sell the units as-is.

Explanation:

Giving the following information:

Number of units= 12,600

Varto has two alternatives for these items:

(1) they can be sold to a wholesaler for $13 each

(2) they can be processed further for $272,300 and then sold for $34 each.

The first cost of $31 is a sunk cost, it will remain no matter which option is chosen. We will not take it into account for the decision making process.

Option 1:

Effect on income= 12,600*13= $163,800

Option 2:

Effect on income= 12,600*34 - 272,300= $156,100

It is more profitable to sell the units as-is.

7 0
3 years ago
Paige is thinking about discontinuing a software program her company
Flura [38]

Answer:

C. Her company may still need to provide customer service to existing customers.

Explanation:

Apex

8 0
3 years ago
Management in the News In April 2010, the explosion of British Petroleum’s (BP) Deepwater Horizon oil drilling rig and the accom
Firlakuza [10]

Answer:

Event Dimension BP stock prices falling 25% during the first month after the oil spill. <u>ECONOMIC. </u>

The Economic dimension of the environment deals with production in the economy which means that it deals with business entities and the financial system. Dimension BP stock price falling therefore falls under her.

Using deep-se submersibles to take pictures of the oil leak a mile below the surface of the water. <u>TECHNOLOGICAL. </u>

The Technological dimension of the environment refers to anything related to the use of technology and using deep-sea submersibles to take pictures of the leak below the surface of the water will definitely fall under technology.

People moving from Louisiana to Oklahoma to avoid the effects of the spill. <u>SOCIOCULTURAL. </u>

Sociocultural dimension deals with human beings and how they relate with themselves and the environment around them. People therefore moving from Louisiana to Oklahoma will fall under here.

3 0
3 years ago
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
guajiro [1.7K]

Answer:

$651,300

Explanation:

Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.

<u>Calculation of the cost of  purchase of the land:</u>

Purchase price                            $ 620,000

Demolition of the old building      $ 23,000

Land preparation and leveling       $ 8,300

Cost of  purchase of the land       $651,300

3 0
3 years ago
Do chefs typically go to graduate school?
Viktor [21]
No they instead transition into a culinary school

7 0
3 years ago
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