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Anvisha [2.4K]
4 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]4 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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Answer is Mild difference.

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The following transactions occur for the Hamilton Manufacturers.
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Answer:

The answer is stated below:

Explanation:

The accounting equation is as follows:

Assets = Liabilities + Stockholders' Equity

Analyzing the transactions:

1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity

So,

Assets        =   Liabilities        +  Stockholders' equity

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2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

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3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

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Assets        =   Liabilities        +  Stockholders' equity

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7 0
3 years ago
On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,
Lelu [443]

Answer:

The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697

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Present value of Lease Payment = $4,561,300

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8 0
3 years ago
Three identical homes in a neighborhood were listed at the same time in a market where demand was constant. According to the law
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Answer:

So then as we can see if the demand is constant the first sold would be the correct answer for this case. Because assuming the demand constant and we have more than 1 supplier with the same price the first one would sold the good or service on this case the house.

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The law of demand and supply "is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services".

So then as we can see if the demand is constant the first sold would be the correct answer for this case. Because assuming the demand constant and we have more than 1 supplier with the same price the first one would sold the good or service on this case the house.

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4 years ago
Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of mone
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