1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fredd [130]
2 years ago
12

If fixed costs are $256,000, the unit selling price is $38, and the unit variable costs are $22, what are the old and new break-

even sales (units) if the unit selling price increases by $4? a. 16,000 units and 12,800 units b. 16,000 units and 15,000 units c. 6,737 units and 6,400 units d. 16,000 units and 18,286 units
Business
2 answers:
shusha [124]2 years ago
3 0

Answer:

The correct answer here is option A) 16,000 units and 12,800 units.

Explanation:

Break even sales is a very important analysis which a company's management do to know how much of the sales they need to make to avoid losses and earn profit. In this all the fixed cost and variable cost are included.

FORMULA FOR BREAK EVEN SALES ( UNITS ) =

             FIXED COST / CONTRIBUTION MARGIN

Where contribution margin = selling cost per unit - variable cost per unit

OLD BREAK EVEN SALES =

        where fixed cost = $256,000 and selling unit = $38, variable cost= $22

  =                FIXED COST / CONTRIBUTION MARGIN

  =          $256,000 / $38 - $22

  =          $256,000 / 16

  =         16,000 UNITS

NEW BREAK EVEN SALES =

here new selling price per unit = $42

=  $256,000 / $42 - $22

= $256,000 / $20

= 12,800 units.

STatiana [176]2 years ago
3 0

Answer:

The break even sales will be 16,000 units and 12,800 units.

Explanation:

The fixed costs are $256,000.

The unit selling price is $38, while the unit variable costs are $22.

To find the break even sales, we will calculate the ratio of fixed costs and contribution margin per unit.

The contribution margin per unit will be the difference between per unit price and per unit variable costs.

Break even sales

= Fixed costs/ contribution margin per unit

=$256000/$38-$22

=$256000/$16

=16000 units

Now, If there is an increase in price level by $4.

New break even sale

= Fixed costs/ contribution margin per unit

=$256000/$42-$22

=$256000/$20

=12800 units

So, the Old break even sales is 16,00 units. While the new break even sales is 12,800 units.

You might be interested in
Which of the following is correct: A. The post-closing trial balance will ensure the accounting equation is balanced at the end
kondor19780726 [428]

Answer:

D. Worksheet is a tool used in preparing adjusting entries and the financial statements, and the use of worksheet is optional

Explanation:

The correct option D because worksheet is used to adjust value and prepare the financial statements and it is not mandatory to use.

The post-closing trial balance might show that accounting equation is balanced but not every time. It only ensure the total of debits balances and total of credits balances are equal. All transaction might not correctly journalized.

The accounting cycle starts with analyzing the business transactions and ends with the preparation of a Financial Statements.

Property, Plant and Equipment are our physical, tangible and long term assets which include all land, office, building, Machinery, equipment and vehicles.

5 0
3 years ago
Refer to Stevenson, Ross, and Warner. Which of the following represents a key component of the Sarbanes-Oxley Act relating to co
antoniya [11.8K]

Answer:

The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.

Explanation:

The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.

The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.

In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.

4 0
2 years ago
Careers in the Hospitality and Tourism career cluster are
son4ous [18]

Answer:

The correct answer is: B. Bountiful and expected to continue to grow.

The tourism and hospitality industry is a fast growing and developing industry, so in the future,  it is expected to grow, and become more bountiful.

Let me know if this helps!

8 0
2 years ago
Read 2 more answers
In a _________________________ economy, the individuals and the government share in the economic decision-making process. These
VladimirAG [237]

Answer:

I believe it's Command Economy

Explanation:

8 0
1 year ago
Why is simple interest useful for planning parts of your financial future? a. simple interest can endure unforeseen economic cha
deff fn [24]

A bank with a simple interest savings plan will automatically transfer money from your paycheck to your savings account, letting you save without any extra effort.

Simple interest allows your money to earn money, so you have to save less.

<h3>What Is Simple Interest?</h3>

Simple interest is a quick and easy method of calculating the interest charge on a loan.

Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

<h3>Where is simple interest used in real life?</h3>

Application of Simple Interest:

In our daily lives, sometimes, we come across a situation where we need to borrow money from a bank, post office or a moneylender for a specified period.

At the end of this period, we must pay back the money we had borrowed plus some additional money for using the lender's money.

Learn more about simple interest here:

<h3>brainly.com/question/1325643</h3><h3 /><h3>#SPJ4</h3>

3 0
1 year ago
Other questions:
  • Which of the following types of child care is most closely regulated by state and county government? A. Child care center B. Fam
    5·2 answers
  • Marquis Company uses a weighted-average perpetual inventory system.
    15·1 answer
  • Suppose that monetary neutrality and the fisher effect both hold. other things the same, the quantity theory would predict that
    7·1 answer
  • The following are insured for medical payments under a Personal Auto Policy (PAP):
    5·1 answer
  • An estimate based on an analysis of receivables shows that $790 of accounts receivables are uncollectible. the allowance for dou
    15·1 answer
  • Abigail sells rice to stores. She has total og 125 cavans that she plans to distribute to three stores. If she gives 1/5 of what
    5·1 answer
  • Which of the following effects best explains the downward slope of the aggregate demand curve? A. A multiplier effect B. An expe
    5·1 answer
  • International standards are used in supply chain to....
    7·1 answer
  • An example of _____ is causing panic selling by telling people that value in a neighborhood will decline due to the purchase of
    5·1 answer
  • When power or influence within an organization flow to individuals or leaders who have the ability to help an organization or gr
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!