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2 years ago

If sales units exceeds the break-even point in units, the firm will experience

Business

1 answer:

BigorU [14]2 years ago

8 0

Answer:

an operating profit

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Where:

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

The sales, after variable cost, generate a contribution, this contribution in relationship with sales can be measure as a ratio.

And this ratio applied to fixed cost get us the sales level at which the company can aford both, their fixed cost and variable cost.

Resuming:

The break even is the sales level which generate enough contribution to pay up the fixed cost and the variable cost generated for the sales.

If sales are higher than BEP then it will pay their variable and fixed cost and also make a profit.

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Based on the information given, it can be deduced that Trade Winds Corp. has a closed shop arrangement.

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2 years ago

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iren2701 [21]

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5 months ago

A company deposits $3500 in a bank at the end of every year for 12 years. The company makes no deposits during the subsequent 8

Firdavs [7]

Answer:

FV= $94,108.42

Explanation:

First, we need to calculate the future value of the 12 annual deposits:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {3,500*[(1.06^12) - 1]} / 0.06

FV= $59,044.79

Now, the future value at the end of the 20 years (8 years more):

FV= PV*(1 + i)^n

FV= 59,044.79*(1.06^8)

FV= $94,108.42

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2 years ago

The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil ma

slega [8]

Answer: The correct answer is a. true.

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The scenario above is similar to the recent happenings regarding the impacts of coronavirus on global economy and is very fresh in our memories. According to the TheNation Newspapers, "oil prices tanked more than seven per cent at the weekend to their lowest levels since mid-2017 after Russia balked at OPEC's proposed steep production cuts to stabilize prices."

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2 years ago