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castortr0y [4]
3 years ago
14

A company sells children’s sleds for $70 each. The firm has variable costs per unit of $35 and total fixed costs of $120,000. Wh

at is the company’s break-even point in sales dollars? *
Business
1 answer:
UkoKoshka [18]3 years ago
4 0

Answer:

$240,030

Explanation:

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

  • total fixed costs = $120,000
  • contribution margin = $70 - $35 = $35

break even point in units = $120,000 / $35 = 3,428.5 ≈ 3,429 units (we must round up)

to calculate break even point in sales dollars we multiply the break even point units by the selling price per unit = 3,429 units x $70 = $240,030

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In order to achieve a competitive advantage, Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market
Anna11 [10]

Answer:

The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.

Explanation:

The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.

In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.

In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment .

The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).

8 0
3 years ago
The following information is given for an economy: Labor Force of an Economy Number of People (millions) Total population 35.4 C
gizmo_the_mogwai [7]

Answer:

a. 28.7 millions

b. 20.4 millions

c. 0.9231, or 92.31%

Explanation:

a. How much of the population is older than 16? million  

Number of population older than 16 = Total population - Children under the age of 16 = 35.4 – 6.7 = 28.7 millions

b. What is the size of the labor force? million

Labour force = Employed + Unemployed = 18.5 + 1.9 = 20.4 millions

c. What is the labor force participation rate?

Working age population = Total population – Children under the age of 16 – Retirees = 35.4 – 6.7 – 6.6 = 22.1 millions

Labor force participation rate = Labor force ÷ Working age population = 20.4 ÷ 22.1 = 0.9231, or 92.31%

7 0
3 years ago
Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevan
Zolol [24]

Answer:

Dr Construction 800000

Dr Cost of construction 1200000

Cr Revenue form long-term contracts 2,000,000

Explanation:

Based on the information given What would be the journal entry made in 2020 to record revenue is :

Dr Construction $800,000

Dr Cost of construction $1,200,000

Cr Revenue form long-term contracts $2,000,000

($800,000+$1,200,000)

(Being to record revenue)

4 0
2 years ago
You can see that you have hundreds of visitors to your website each month. You are using web analytics software to find why this
exis [7]
The web page content is not engaging enough, and poor marketing campaigns
7 0
3 years ago
You use u.s. currency to pay the owner of a restaurant for a delicious meal. the currency
I am Lyosha [343]

b. has intrinsic value. the exchange is an example of barter. is your best answer.

Intrinsic value is the value of a given item without market value.  Pretty much no matter what the market value is (stock), the item's price will not change.

~

6 0
3 years ago
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