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3 years ago

If fixed costs increased and variable costs per unit decreased, the break-even point would_______________.

Business

1 answer:

Aleksandr-060686 [28]3 years ago

5 0

Answer:

The correct option is D,cannot be determined from the data provided

Explanation:

Break-even points in units=fixed costs/contribution margin per unit

Contribution margin per unit =selling price -variable cost

In other words, from the scenario, it is clear that the numerator fixed costs has increased and also a reduction in variable cost per unit implies an increase in contribution margin per unit since a lesser variable cost is being deducted from selling price.

The impact of both increases in fixed costs and contribution margin cannot be determined except if more details is provided which will give further guidance regarding which of the two increased at a higher rate compared to the other.

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Pam runs a hot dog cart at the sports stadium. Will has no skills, no job experience, and no alternative employment. Entrepren

DochEvi [55]

Answer:

rate of return of fund = 3.66%

Explanation:

start = 327/23 = 14.22

end = 349/29 = 12.04

distributions = 1.5 + 1.2 = 2.7

rate of return of fund = 12.04-14.22 +2.7 / 14.22

= 3.66%

4 0

2 years ago

Cheshire Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce

densk [106]

Answer: Depreciation for the first year = 17825

Explanation:

Given:

Machine purchased for $125,000

Salvage value of $10,000

Output = 100,000

First year of operation, Output = 15500

First, we'll evaluate depreciation per unit over the entire life of the machine:

i.e. $Depreciation\ per\ unit = \frac{ Purchasing\ cost - Salvage\ value}{Total\ units\ produced}$

Depreciation per unit = $\frac{125000 - 10000}{100000}$

Depreciation per unit = 1.15

Now, we'll compute the depreciation for the first year:

Depreciation for the first year = Depreciation per unit × Output (first year)

Depreciation for the first year = 1.15 × 15500

Depreciation for the first year = 17825

7 0

2 years ago

Read 2 more answers

Products that have been completed and are ready to be sold by the manufacturer are called:

Wewaii [24]

Answer:

The correct answer is letter "A": Finished goods inventory.

Explanation:

Finished goods inventory refers to those products that have reached their maximum level of completion and are stored in the manufacturing company inventory waiting for retailers or end-consumers to demand them. Finished goods are also called final goods.

3 0

3 years ago

The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $510,000 Sales 567,

sergeinik [125]

Answer:

Italian Exports, Inc.

Budgeted Income Statement

For the Month Ending Mar. 31, 2020

Sales $ 567,933

Cost of Goods Sold

Beginning Inventory $0

Purchases 294,820

Cost of Goods Available for Sale $294,820

Ending Inventory (10%) 29,482

Cost of Goods Sold $265,338

Gross Profit 302,595

Operating Expenses:

Marketing Expense (5%) 25,500

Sales Commissions (2%) 11,359

Rent Expense 7,400

Depreciation Expense 1,000

Utilities 2,600

Total Operating Expenses $47,859

Operating income $254,736

Taxes (15% of next month sales) 84,150

Net Income $170,586

Explanation:

a) Data and Calculations:

Estimated Sales $510,000

Sales 567,933

Purchases 294,820

Ending Inventory* 10%

Administrative Salaries 50,360

Marketing Expense** 5% of $510,000 = $25,500

Sales Commissions 2% of $567,933 = $11,359

Rent Expense 7,400

Depreciation Expense 1,000

Utilities 2,600

Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes

Estimated sales next month = $561,000 (1.1 * $510,000)

Taxes = $84,150 (15% of $561,000)

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3 years ago

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mars1129 [50]

Identity management is the answer

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3 years ago