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daser333 [38]
3 years ago
14

Break-Even Sales

Business
1 answer:
Licemer1 [7]3 years ago
3 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Currently, the unit selling price of a product is $125, the unit variable cost is $105, and the total fixed costs are $460,000. A proposal is being evaluated to increase the unit selling price to $130.

Break-even point= fixed costs/ contribution margin

A) Break-even point= 460,000/(125-105)= 23,000 units

B) Break-even point= 460,000/ (130 - 105)= 18,400 units

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A process includes 9 tasks and there are 3 workers. Each task can be assigned to only one worker and each worker must be assigne
Katen [24]

Answer:

24.8 per hour

Explanation:

There are 3 workers and hence are three workstations. Consecutive activities are assigned to each workstation such that workload is as uniform as possible

Hence the time in each workstation (WS) is,  

WS1 = 45+55+15 = 115 seconds

WS2 = 25+50+5+30 = 110 seconds

WS3 = 95+50 = 145 seconds

Workstation 3 has the highest processing time and hence is the bottleneck and determines the capacity of the process

Therefore capacity = 1/145 per second = 3600/145 per hour = 24.8 per hour

8 0
3 years ago
FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares
Margaret [11]

Answer:

wP = 114.5 / 514.6   = 0.2225 or 22.25%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
  • rD, rP and rE are the cost of debt, preferred stock and common equity respectively.

To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.

Market Value - Debt = 10000 * 1000 * 1.01  =  $10.1 million

Market Value - Preferred stock = 1 * 114.50  = $114.5 million

Market Value - Common equity = 26 * 15  =  $390 million

Total MV of capital structure = 10.1 + 114.5 + 390  = $514.6

wP = 114.5 / 514.6   = 0.2225 or 22.25%

3 0
3 years ago
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online.
oee [108]

Answer:

$5

Explanation:

The computation of Alice's consumer surplus is shown below:

Consumer surplus =  Willing to spend - Market price after considering the discount

where

Willing to spend = $30

Market price equals to

= Purchase a pair of jeans - coupon rate

= $35 - $10

= $25

So, the consumer surplus is equal to

= $30 - $25

= $5

3 0
3 years ago
What is the acceleration of an object that has a mass of 4.0 kg if the net force acting on it is 26N
Lynna [10]
Use Newton's Second Law: Fnet = ma
where Fnet = total net force, m = mass of object, and a = acceleration of object.

You are given Fnet = 26N and m = 4.0kg. Plug them into the equation and solve for a:
26 = 4.0a
a = 6.5

The answer is 6.5 m/s^2
7 0
3 years ago
Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in operating assets. Furthermo
maxonik [38]

Answer:

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

Explanation:

WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt

16% = 45%* Cost of Equity + 55%*(1-40%)*9%

16%-55%*(1-40%)*9% = 45%*Cost of Equity

Cost of Equity = 28.9556%

Current price of Stock = D1/(Cost of Equity - Growth)

25 = 4/(28.9556%-Growth)

Growth = 28.9556%-4/25 = 12.96%

ROE = Net income/Equity = 1.4/(45%*9)

Growth rate = (1- Payout ratio)*ROE

12.96% = (1-Payout ratio)*  1.4/(45%*9)

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

4 0
3 years ago
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