Answer:
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Answer:
1. 120 hot dogs per day
2. $1,920
3. Inelastic
4.200
Explanation:
1. Break even is a term given to a situation where there is no profit or loss made by an organization for product sales.
Formula is;
Fixed cost /contribution per unit, where contribution per unit is selling price - variable price.
Solution.
Since Total fixed cost =$1,200, Selling price=$16, Variable costs=$6
=Fixed costs/(Selling price - Variable costs).
= $1,200/($16 - $6)
=$1,200/$10
=120 hot dogs.
2. Break even point in dollar sales volume. This refers to the number of products that would be produced and sold to cover production cost.
Formular is ;
Fixed cost/contribution per unit× Sales price per unit.
Solution
=Fixed costs/(Selling price - Variable costs)× Selling price.
=$1,200/($16 - $6)×$16
=$1,200/$10×$16
=$1,200×$16/$10
=$19,200/$10
=$1,920
3. The demand would be inelastic. Inelastic demand is when the demand of buyers does not change as much as changes in price.
4. Achieve level of sales target. This is when management wanted to know the sales level at which targeted profit will be achieved.
Formula
Fixed costs + Target profit/Contribution per unit
Solution.
=Fixed costs + Target profit/(Selling Price - Variable costs)
= $1,200 + $800/($16-$6)
=$1,200 + $800/($10)
=$2,000×/$10
=$200
=200 cases would needed to sell
Answer:
1) Japanese buyers of pharmaceuticals.
Instead of focusing on U. S pharmaceuticals, we can look for Japanese buyers of pharmaceuticals. The fact should be acknowledged that if both the policies result in the same quantity which is being imported, then the price paid by the Japanese buyers will be identical as well.
2) Japanese producers of pharmaceuticals.
If both policies are resulting in the same quantity of the import, then the Japanese producers should be indifferent to which trade restriction is selected.
Answer:
Results are below.
Explanation:
Giving the following information:
Target Profit Outdoors Company sells a product for $110 per unit. The variable cost is $65 per unit, and fixed costs are $288,000.
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 288,000 / (110 - 65)
Break-even point in units= 6,400
<u>Now, we incorporate the desired profit in the formula:</u>
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (288,000 + 54,720) / 45
Break-even point in units= 7,616 units
Explanation:
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