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irina1246 [14]
3 years ago
13

Problem 5-30 Graphing; Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8][The following information ap

plies to the questions displayed below.] Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals$40Variable expenses per pair of sandals 20Contribution margin per pair of sandals$20Fixed expenses per year: Building rental$10,000Equipment depreciation 8,000Selling 8,000Administrative 14,000Total fixed expenses$40,000Problem 5-30 Part 1Required:1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
Business
1 answer:
WARRIOR [948]3 years ago
8 0

Answer:

Break Even Point

In Units = 2,000 units

In value = $80,000

Explanation:

Break even Point = \frac{Fixed\ Cost}{Contribution}

When we use contribution per unit, we get the break even point in units sales.

When we use the contribution margin as a percentage of sales we get break even sales in value.

Contribution per unit = $20

Contribution margin in percentage = $20/$40 = 50%

Therefore, Break even Point in units = \frac{40,000}{20} = 2,000

Break even units = 2,000

Break Even Point in value = \frac{40,000}{0.50} = 80,000

Sales to be made in value at break even = $80,000

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Irina-Kira [14]

Answer:

The amount of investment should be $1926.891 approximately

<u>Explanation:</u>

The following formula has been used to calculate the amount of investment

A = P(1+r/100) ^n

where: A = future value , P = present value , R = rate of interest , N = time period

Hence , applying the formula, we get,

$5500 = P (1+6/100) ^18

Hence P=$5500/ (1.06) ^18

=$1926.891(approx)

7 0
3 years ago
A power line cut has isolated 50 sowbugs from its original population of 15,000. after only five generations, the new population
jasenka [17]

<span>The reason why the new population exhibits dramatic genetic difference from the original one probably by chance, the allele frequencies of the isolated sow bugs differed from those in the original population, and subsequent genetic drift caused further divergence from the original gene pool.</span>

4 0
3 years ago
Trade credit and discounts are important strategies used by firms in the daily operations of their business. Calculate the cost
Olegator [25]

Answer:

When a discount is given as 2/12, Net 32, it means that the customer is allowed a 2% discount if they pay off their purchase in 12 days. If they don't, they would have to pay off the full amount in 32 days.

The Cost of a firm's credit is calculated by the formula:

= Discount %/ ( 100% - Discount %) * (360/Allowed payment days - Discount days)

a. 2 / 12, Net 32

= (2%/ (100 - 2% )) * (360 / (32 - 12))

= 36.73%

b) 3/15, Net 36

= (3%/ (100 - 3% )) * (360 / (36 - 15))

= 53.02%

c) 2.5/18, Net 35

= (2.5%/ (100 - 2.5% )) * (360 / (35 - 18))

= 54.30%

d) 2.25/20, Net 38

= (2.25%/ (100 - 2.25% )) * (360 / (38 - 20))

= 46.04%

5 0
2 years ago
27) if u.s. interest rates fall relative to japanese interest rates and japanese inflation falls relative to u.s. inflation, the
Oduvanchick [21]
The US dollar savings will flow into Japan and put appreciation pressure on the Japanese Yen, resulting in a number of policy choices for Japan: 1, the Japanese central bank will interface the exchange rate between US dollar and Japanese Yen by buying and hoarding US dollars ; 2, the Japanese interest rate will also fall to counter the pressure of currency appreciation; 3, the Japanese central bank could increase monetary supply to deliberately increase inflation pressure.
6 0
3 years ago
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In
Leto [7]

Answer: Option C : $300; Negative $100

Linda's accounting profit = $300

Economic Profit= -$100

Explanation:

Total money generated = cost price x number of units = $100 x 10 = $1000

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Linda's accounting profit = $300

Economic Profit = $300 - ($20 x 20hours)

Economic Profit= $300 - $400 = -$100

5 0
3 years ago
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