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kolezko [41]
3 years ago
11

arn​ Basket, Ltd., sells​ hand-knit scarves. Each scarf sells for​ $40. The company pays​ $150 to rent a vending space for one d

ay. The variable costs are​ $11 per scarf. What total revenue amount does the company need to earn to break​ even? (Round any percentages to two decimal places and your final answer to the nearest​ cent.)
Business
1 answer:
spayn [35]3 years ago
8 0

Answer:

The total revenue needed to break even is $206.90 per day

Explanation:

The break even point of revenue is the total revenue earned by the firm where total revenue equals total cost and there is no profit or no loss. The break even in dollars can be calculated using the following formula,

Break even in dollars = Fixed cost / Contribution margin ratio

Contribution margin ratio = (Selling price per unit - variable cost per unit) / Selling price per unit

Contribution margin ratio = (40 - 11) / 40 = 0.725 or 72.50%

The fixed cost per day is the cost of the vending space of $150.

Break even in dollars = 150 / 0.725   = $206.896 rounded off to $206.90

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3 years ago
Suppose First National Bank holds ​$100 million in assets with an average duration of 3 ​years, and it holds ​$90 million in lia
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Answer:

% change decrease is = 1.2 %

Explanation:

given data

assets = $100 million

average duration = 3 ​years

liabilities = $90 million

average duration = 3 years

interest rates= 4% increase

to find out

percentage decrease in First National​ Bank's net worth relative to the total original asset value

solution

change in assets value is

change in assets value = $100 million  × 4%  × 3 year = $1200 million

change in liability value is

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so % change is = \frac{120}{100}

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3 years ago
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is
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Answer: With a loss

Explanation:

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This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.

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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
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Answer:

$519,799.59

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Discount rate = R = 14.50%

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1            218,000.00          0.873362            190,393.0131  

2           224,000.00          0.762762           170,858.6793

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          Total of PV = NPV =                           <u> $519,799.59</u>

<u />

Note:

Df = 1/(1+R)^Year

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