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
emmainna [20.7K]
3 years ago
9

Stephanie, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costsare $16,000. The company is consideri

ng the purchase of an automated machine thatwill result in a $2 reduction in unit variable costs and an increase of $5,000 in fixedcosts. Which of the following is true about the break-even point in units?
Business
1 answer:
Naddika [18.5K]3 years ago
3 0

Answer:

The current BEP is                             727 units

with the proposed change it will be 875 units

The change increase the break even point by 148 units

Explanation:

The BEP in units will be:

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

Where:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

40 - 18 = 22 contribution margin

then we calcualte BEP

16,000 / 22 = 727,27 units

<u>with the proposed change:</u>

40 - 16 = 24 contribution margin

16,000 + 5,000 = 21,000 fixed cost

21,000 / 24 = 875

875 - 727 = 148

You might be interested in
Signal mistakenly produced 1,000 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defe
Contact [7]

Answer:

It is more profitable to continue to rework the phones and sell them.

Explanation:

Giving the following information:

Signal mistakenly produced 1,000 defective cell phones.

<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>

Sell as it is:

Income= 33*1,000= $33,000

Rework:

Costs= 88*1,000= $88,000

Sales= 144*1,000= $144,000

Total gain= $56,000

It is more profitable to continue to rework the phones and sell them.

3 0
3 years ago
Hello everyone!, wyd
Lelechka [254]

Answer:

Oh nothing much just vibeing with my homies

Explanation:

3 0
3 years ago
Read 2 more answers
Which of the following is not a type of consumer credit?
Masteriza [31]
Automobile loans is not a type of consumer credit
8 0
3 years ago
Read 2 more answers
A basic Customer Relationship Management premise is that: a. each individual customer is limited to a single sale. b. customers
klasskru [66]

A basic Customer Relationship Management premise is that<u> (B) </u><u>customers form relationships with companies as opposed to companies conducting individual transactions with customers.</u>

<u />

  • A tool known as customer relationship management (CRM) is used to handle all interactions and relationships between your business and its clients.
  • The objective is straightforward: to strengthen business ties.
  • CRM systems assist businesses in maintaining contact with clients, streamlining procedures, and boosting profitability.
  • Expressing gratitude to customers once they make purchases.
  • If a customer buys a certain product, upsell or cross-sell to them.
  • sending a coupon along with a birthday greeting. giving a customer who hasn't bought anything recently a discount.

What is CRM and why is it important?

  • CRM enables organizations to establish a relationship with their clients, which fosters loyalty and client retention.
  • CRM is a management technique that boosts a company's profits since customer loyalty and revenue are two factors that influence a company's revenue.

Learn more about customer relationship management (CRM) /brainly.com/question/21299183

#SPJ4

7 0
2 years ago
If you have a low credit score, lenders are more likely to give you what type of interest rate? A. A low interest rate B. A high
alisha [4.7K]

Answer:

B) A high interest rate.

Explanation:

A low credit score means a bad credit score. Meaning you are not that reliable in paying your credit back. If you were reliable, they would make it easy for you and give you a low interest rate. However, your credit score says otherwise so they will give you a high interest rate since you are a higher risk.

8 0
3 years ago
Other questions:
  • Macro Company has the following adjusted accounts and balances at June 30:
    12·1 answer
  • What percentage does a bank expect you to put down on a house
    5·2 answers
  • Service variability means that the quality of services does not depend on who provides them. True False
    7·1 answer
  • There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $1
    9·1 answer
  • The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the
    8·1 answer
  • New technology in ________ allows producers to use materials from all over the world to manufacture goods.
    9·2 answers
  • Tax accounting, llc, is a member-managed limited liability company. if the law in tax accounting’s state is like the law in most
    9·2 answers
  • Which of the following types of venue is favored by small-business retailers?
    12·1 answer
  • Ken just purchased new furniture for his house at a cost of $16,700. The loan calls for weekly payments for the next 6 years at
    11·1 answer
  • January 12, purchased supplies for cash, to be used all year, $3,850; December 31, physical count of remaining supplies, $850
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!