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anygoal [31]
3 years ago
12

Richland Enterprises has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 51 comma 000 Selling p

rice per unit $ 45 Variable expenses per unit $ 25 If Richland Enterprises can reduce fixed expenses by $ 12 comma 120​, how will breakeven sales in units be​ affected?
Business
1 answer:
kogti [31]3 years ago
3 0

Answer:

The company will need fewer units to break even.

Explanation:

Giving the following information:

Total fixed expenses $51,000

Selling price per unit $45

Variable expenses per unit $25

New fixed costs= 51,000 - 12,120= 38,880

First, we need to calculate the actual break-even point. After that, determine the effect​ of the reduction on fixed costs.

Break-even point= fixed costs/ contribution margin

Break-even point= 51,000 / (45 - 25)

Break-even point=  2,550 units

Now, with fixed costs= 38,880

Break-even point= 38,880 / (45 - 25)= 1,944

The company will need fewer units to break even.

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3 years ago
Group price discrimination has ________ consumer surplus than under ________.
makvit [3.9K]

Answer:

The correct answer is letter "B": less; perfect competition.

Explanation:

Typically, <em>more output is produced in perfect competition markets than in markets ruled by price discrimination</em>. Consumer surplus is greater at the same time. Group price discrimination transfers the company some of the competitive consumer surpluses as an additional profit and causes the loss of deadweight due to reduced production.

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3 years ago
A cleaning company uses 10 lbs each of chemicals A, B and C for each house it cleans. After some quality complaints, the company
VashaNatasha [74]

Answer:

D) 25%

Explanation:

Productivity can be described as a measure of profitability of the work done by a company. For example a sales department may measure productivity by number of closed sales in a week.

In this instance the cleaning company will consider cost reduction an increase in productivity.

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The increase in chemical usage is a drop in productivity for the company as they are spending more.

The percentage drop in productivity is a proportion of the additional quantity of chemical to total chemicals used.

Percentage drop in productivity= (10/40)*100= 25%

3 0
3 years ago
if you're interested in working for a specific company what type of job site should you look at for opening
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4 0
3 years ago
Read 2 more answers
Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,500. The m
Ganezh [65]

Answer:

$479,500

Explanation:

To determine the interest due for the first payment we can solve the following:

interest due on payment 1 = total debt x interest rate x 1/12 = $480,000 x 10% x 1/12 = $4,000

Now we need to subtract the interest due from the first payment:

principal paid = payment - interest due = $4,500 - $4,000 = $500

remaining principal = $480,000 - $500 =  $479,500

8 0
3 years ago
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