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Anvisha [2.4K]
3 years ago
11

Partner Industries sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when antici

pated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be:____
a. $15.
b. $20.
c. $50.
d. an amount that cannot be derived based on the information presented.
e. an amount other than those in choices "A," "B," and "C", but one that can be derived based on the information presented.
Business
1 answer:
Vera_Pavlovna [14]3 years ago
8 0

Answer:

b. $20.

Explanation:

Regardless of what the break-even volume is, at this volume profits are zero.

This means that any unit sold beyond this point will provide a profit equivalent to its marginal benefit, which is its selling price subtracted by its variable cost.

If a product sells for $50 and has a variable cost of $30, by selling one unit in excess of its break-even volume, the profit will be:

P= \$50-\$30 =\$20

The profit will be $20.

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1.1 Why is trade important to Africa
uysha [10]
It is important because they need money and food and water because they don't have that much.
7 0
3 years ago
Chez Fred Bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2
steposvetlana [31]

Answer:

See below

Explanation:

Per the above information,

Ending account receivable balance = Beginning account receivable + Credit sales - Collections - Written off amount

$93,000 = Beginning account receivable + $108,000 - $142,000 - $130

$93,000 = Beginning accounts receivable - $34,130

Beginning accounts receivable = $93,000 + $34,130 = $127,130

So, the beginning account receivable would be;

The ending accounts receivable is computed as;

= $930 ÷ 1%

= $93,000

7 0
3 years ago
Jamal purchased a Subway franchise in a great location across the street from an outlet mall. After two years in business, Jamal
Alchen [17]

The correct answer to this open question is the following.

Although the question is incomplete because it does not attach the model to answer it we can comment on the following.

The problem is that Jamal, trying to increase profits, decided to sell two different products that are not part of the Subway products. When the franchisor visited Jamal's location, it realized the changes and set an ultimatum to Jamal to respect the franchise agreement.

The cause of the problem is that although Jamal wanted to diversify the products to have more income, this contradicts and is against the franchise agreement he signed when he bought the Subway franchise. The contract clearly states that the owner of the franchise can only sell products authorized in the contract by Subway. That is exactly one of the characteristics of a franchise. That you visit one of them any place in the world, and you are going to find de the same products with the same quality. That is the product guarantee of a franchise like Subway.

So the effects for the company are that its reputation an image can be questioned for selling different products that are hot approved by Subway. It is a major risk the company is not going to allow. Furthermore, it is stated in the contract. So Jamal has no right to break it.

One possible solution is that Jamal respects those 30 days to make the proper corrections, follow the guidelines established in the Subway's manuals, offer a sincere apology, and commit himself to operate the franchise just as it is stated on the agreement.

7 0
3 years ago
CSU Co. just paid a dividend of $1.4 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent
boyakko [2]

Answer:

$16.93

Explanation:

Current stock price = dividend ( 1 + growth rate) / required return - growth rate

$1.4(1.04) / 0.126 - 0.04 = $16.93

8 0
3 years ago
Millennials who patronize restaurants and other out-of-home food purveyors have become increasingly health- and nutrition-consci
Hoochie [10]

Answer: target

Explanation:

A target market are the group of customers which a business or a company directs the resources and its marketing efforts towards.

From the question above, since Millennials who patronize restaurants and other out-of-home food purveyors have become increasingly health- and nutrition-conscious, the strategy used by many fast food companies to improve the nutritional profile of their menus by adding items such as salads, fresh fruit, and plant-based meat substitutes is intended primarily to target millennial customers.

The fast food companies are aware that by adding items such as salads, fresh fruit, and plant-based meat substitutes, this may convince Millennial customers to try them out.

Therefore, the answer is option d"targets".

6 0
4 years ago
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