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Paraphin [41]
3 years ago
6

Sandhill Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several ha

t styles from a single distributor at $16 each. All other costs incurred by the company are fixed. Sandhill Cash, Ltd. sells the hats for $33 each.
If fixed costs total $130,000 per year, what is the breakeven point in units? In sales dollars?
Business
1 answer:
IgorC [24]3 years ago
5 0

Answer:

Part (a) Breakeven point in units is 7,648 units

Part (b) Breakeven point in dollars is $ 252,352.94

Explanation:

Break Even Point is the Point where the firm makes neither a <em>Profit</em> nor a Loss.

The Break Even Point is Calculated as follows:

Breakeven point in units = Fixed Costs / Contribution per Unit

Therefore Breakeven point in units = $130,000/ ( $33 - $16)

                                                           = 7,647.05882

Consider the extra unit, thus Break - Even is  7,648 units

Breakeven point sales dollars = Fixed / Contribution Margin Ratio

Therefore Breakeven point in dollars = $130,000/ ($17/$33)

                                                              = $ 252,352.94

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vladimir2022 [97]

Answer:

<u>A. Plans for making commodities available for sale or trade</u>

Explanation:

  • As a market is a place where all the goods and commodities are brought for sale the products and services that exist in the market or on the market are those that brought for the consumption by the people.
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3 years ago
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When consumers start searching for ways to satisfy needs, their internal search is characterized by A. consulting close friends
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Using the Internet to find what other consumers feel about a specific product or service is the  internal search is characterized, When consumers start searching for ways to satisfy needs.

<h3>How internet is helpful in finding out about things?</h3>

Internet is very useful in many ways for the consumers, some of them are-

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Thus, option E is correct.

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7 0
2 years ago
Short term creditors are usually interested in evaluating
LUCKY_DIMON [66]

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Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.

3 0
2 years ago
In what type of economy do individuals and firms determine what will be produced?
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5 0
3 years ago
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James Corporation is planning to issue bonds with a face value of $500,000 and a coupon rate of 6 percent. The bonds mature in 1
Anestetic [448]

Answer:

Case A $581,757.17  

Case B $500,000.00  

Case C $416,910.21  

Explanation:

Current price of a bond

The market price of a bond can be computed using the pv formula in excel, which is given as :

=pv(rate,nper,pmt,fv)

Where rate is the yield to maturity on the bond divided by 2 since the bond in question is semi-annual interest paying bond i.e

Case A 4%/2=2%

Case B 6%/2=3%

Case C 8.5%/2=4.25%

The nper is the time to maturity of the bond multiplied by 2 for the same reason cited for yield to maturity  i.e 10 years *2=20

The pmt is the semi-annual coupon interest payable by the bond i.e 6%/2*$500,000=$15,000

The fv is the future value of the bond given as $500,000

Case A

=-pv(2%,20,15000,500000)

Pv= 581,757.17  

Case B

=-pv(3%,20,15000,500000)

PV=$$500,000.00  

Case C

=-pv(4.25%,20,15000,500000)

PV=$416,910.21  

8 0
3 years ago
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