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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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Answer:

24 to 48 hours

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7 0
2 years ago
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A
cestrela7 [59]

Answer:

Total Manufacturing Cost = $9,347

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Total cost for the job 450 is as follows:

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3 0
3 years ago
You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w
Oksanka [162]

Answer:

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Explanation:

Giving the following information:

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Answer:

C. lower, higher

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Explanation:

7 0
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Answer:

True

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