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Andrew [12]
3 years ago
5

Reynold's Company has a product with fixed costs of $309,000, a unit selling price of $24, and unit variable costs of $21. The b

reak-even sales (units) if the variable costs are decreased by $3 is
Business
1 answer:
Serhud [2]3 years ago
3 0

Answer:

The answer is 51,500 units

Explanation:

Break-even sales is a point in which a business or a firm neither make profit nor loss. Total Revenue equals total cost. Break-even sales help to know the point at which business starts to make profit.

Break-even sales is:

Fixed cost/contribution margin.

Where contribution margin is sales price per unit minus variable cost per unit.

In the question, variable cost are decreased by $3.

So the new variable cost is $21 - $3

=$18.

Contribution margin is $24 -$18

$6

Therefore, The break-even sales (units) if the variable costs are decreased by $3 is:

$309,000/$6

=51,500 units

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One of your classmates was recently found to have cheated on the exam. Though furious, your instructor spoke to the student very
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Answer:

d. interpersonal justice

Explanation:

Interpersonal justice -

It refers to the practice of treating the people with proper respect and dignity , is referred to as interpersonal justice .

In case of any harmful , serious condition or activity , the practice of communicating or resolving the issue with the people in a very kind and respectful manner , is the sign of an intelligent or smart person  .

Hence , from the given scenario of the question ,

The correct option is d. interpersonal justice .  

4 0
3 years ago
he controller of Wildhorse Industries has collected the following monthly expense data for use in analyzing the cost behavior of
Solnce55 [7]

Answer:

Variable cost per unit= $0.5

Explanation:

<u>To calculate the variable and fixed costs under the high-low method, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,420 - 2,925) / (8,870 - 3,880)

Variable cost per unit= $0.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 5,420 - (0.5*8,870)

Fixed costs= $985

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,925 - (0.5*3,880)

Fixed costs= $985

5 0
2 years ago
What is the biggest advantage of having a checking account
madreJ [45]
You have access to online and Mobile banking ATM’s and the use of debit card.
7 0
3 years ago
You have $27,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with
zmey [24]

Answer:

stock x with an expected return of Y

Explanation:

7 0
2 years ago
Birch Company normally produces and sells 43,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component
Varvara68 [4.7K]

Answer:

a)No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate.  By closing  down,  the  needs  of  these  customers  will  not  be  met  and they would move to another supplier

b) 9880 units

Explanation:

Contribution margin = selling price - variable cost = $30 - $19 = $11

Contribution margin lost = 14000 units / month * 2 months = 28000 units

Contribution margin lost by the plant closing = 28000 units * $11 = $308000

Fixed manufacturing overhead cost * number of months = $60,000 per month × 2 months = $120,000

Fixed selling cost = fixed selling costs total * 8% = $46000 * 0.08 = $3680

Costs avoided by closing the plant for two months = $120000 + $3680 = $123680

Net disadvantage before start up cost = Contribution margin lost by the plant closing - Costs avoided by closing the plant for two months = $308000 - $123680 = $184320

Start up cost = $15000

Closing plant disadvantage = Net disadvantage before start up cost + Start up cos = $184320 + $15000 = $199320

No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate.  By closing  down the 28000 units produced would be lost,  the  needs  of  these  customers  will  not  be  met  and they would move to another supplier

b) Costs avoided by closing the plant for two months = $123680

less Start up cost = $15000

Net avoidable cost = $123680 - $15000 = $108680

Net avoidable cost/ Contribution margin per unit = $108680 / $11 = 9880 units

7 0
3 years ago
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