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hram777 [196]
3 years ago
11

A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machi

ne will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.
a. Determine the break-even point for each range. (Round your answers to the next whole number.) One machine Two machines
b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
Business
1 answer:
vampirchik [111]3 years ago
7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

<u>1 machine:</u>

Break-even point in units= 2,100/ (45 - 17)

Break-even point in units= 75 costumers

<u>2 machines:</u>

Break-even point in units= 3,900/ 28

Break-even point in units= 139 costumers

If the demand is from 90 to 120 costumers per day, the company should buy 1 machine. <u>With this level of demand, the company will not cover the costs of two machines. </u>

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The central bank uses a ____________________ monetary policy to offset business related economic contractions and expansions? la
Kamila [148]

Answer:

d.countercyclical

Explanation:

The central bank uses a d.countercyclical monetary policy to offset business related economic contractions and expansions. This is because monetary policy is meant to offset the natural business cycle.

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3 years ago
Explain the characteristics strengths, weaknesses of quantitative​
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3 years ago
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What is one TRUE statement about the stock exchange?
Travka [436]

Answer:

Explanation:

  1. For every seller, there has to be a buyer. For every buyer, there has to be a seller.
  2. The market determines the value put on a stock at least when the stock is on an exchange.
  3. There are many parameters used to determine if a stock should be bought or sold.
3 0
3 years ago
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000 Selling price per un
timama [110]

Answer:

Results are below.

Explanation:

<u>Traditional format income statement:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 10,000 + 86,000 - 23,000

COGS= $73,000

Sales= 14,000*17= 238,000

COGS= (73,000)

Gross profit= 165,000

Total selling expense= (2*14,000 + 19,000)= (47,000)

Total administrative expense= (3*14,000 + 15,000)= (57,000)

Net operating income= 61,000

<u>Contribution margin income statement:</u>

<u>Total variable cost=</u> 73,000 + 14,000*2 + 14,000*3= 143,000

Sales= 14,000*17= 238,000

COGS= (143,000)

Gross profit= 95,000

Total fixed selling expense= (19,000)

Total fixed administrative expense= (15,000)

Net operating income= 61,000

3 0
3 years ago
Teller, a calendar year company, purchased merchandise from TechCom on November 1 of the current year. TechCom accepted Teller's
ikadub [295]

Answer:

Dr Interest Receivable $240

Cr       Interest Income             $240

Explanation:

The reason is that the Techcom company is lender and must account the lending as a loan.

The loan will be paid with the interest at the end of the period. The interest received at the end of December 31 would be the single month loan at the $4800 at the interest rate which is 10 percent here.

The Interest Income = $4800 * (10% interest rate * 2/12) = $240

The interes would be recorded for the two months which is $240 and accounted for as under:

Dr Interest Receivable $240

Cr       Interest Income             $240

And at the end of January 31, Teller will make the payment which would be accounted for as under:

Dr Cash $5260

Cr Interest Revenue  $120

Cr Notes Receivable $4800

Cr Interest Receivable $240

4 0
3 years ago
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