Answer:
(a) Fixed cost = $2000 + $180 (15*12) = 2180
(b) Unit price = $4 + $0.5 (price increase) = $4.5
(c) Unit variable cost = $3
(d) First option
(e) Second option
Explanation:
For (d) we have, first option gives (1800) as 200*(4-3) -2000= -1800 and second option give (1880) as 200*(4.5-3) – 2180.
So, he’d prefer first option because of less loss associated with it.
For (e) we have, first option gives (1300) as 700(4-3) -2000 = -1300 and second option gives (1130) because 700(4.5-3) – 2180 = -1130.
So, he would prefer second option because of less loss associated.
Answer:
The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization.
Explanation:
Answer:
Which one of the following is most apt to align management's priorities with shareholders' interests?-Holding corporate and shareholder meetings at high-end resort-type locations preferred by managers-Compensating managers with shares of stock that must be held for a minimum of three years-Paying a special management bonus on every fifth year of employment-Increasing the number of paid holidays that long-term employees are entitled to receive peppe
Answer:
c. It will increase.
Explanation:
Break even point is the level of activity at which a firm neither makes a profit nor a loss.
<em>Break - even units = Fixed Costs ÷ Contribution per unit </em>
therefore,
<u>Existing break-even point in units :</u>
Break - even units = $16,000 ÷ ($40 - $18) = 727.27 or 728 units
<u>New break-even point in units :</u>
Break - even units = $21,000 ÷ ($40 - $16) = 875 units
Conclusion :
The results show that break-even point in units will increase from 728 units to 875 units as a result of the changes
