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defon
3 years ago
5

A product has a contribution margin of $7 per unit and a selling price of $45 per unit. Fixed costs are $35,000. Assuming new te

chnology increases the unit contribution margin by 50 percent but increases total fixed costs by $20,650, what is the new breakeven point in units
Business
1 answer:
balu736 [363]3 years ago
6 0

Answer:

5,300

Explanation:

Given that,

contribution margin per unit = $7

selling price = $45 per unit

Fixed costs = $35,000

Total fixed cost after increase:

= $35,000 +  $20,650

= $55,650

contribution margin per unit after increase:

= $7 + (50% × $7)

= $7 + $3.5

= $10.5

Therefore,

New Break even point:

= Fixed cost ÷ Contribution per unit

= $55,650 ÷ $10.5

= 5,300

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Afirm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable cos
Rama09 [41]

Answer:

total fixed cost= 90,000

Explanation:

Giving the following information:

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. The variable costs per unit are $5.

The pretax income is calculated using the following formula:

Pretax income= total contribution margin - total fixed cost

60,000= 25,000*(11 - 5) - total fixed cost

60,000 - 150,000= - total fixed cost

total fixed cost= 90,000

7 0
3 years ago
Read 2 more answers
You must decide between $25,000 in cash today or $30,000 in cash to be received two years from now. If you can earn 8 percent in
Anna71 [15]

Answer:

The deal to receive $30000 is better.

Explanation:

To find the better deal we need to calculate the present value of $30000 and then compare it with the amount $25000. If the amount is greater than the $25000, then the amount should be received after the 2 years.

The given time period (n )= 2

Interest rate (r ) = 8%

The amount received after 2 years = $30000

\text{Present value of money} = \frac{Future \ value}{(1 + r)^n } \\= \frac{30000}{(1+0.08)^2} \\= $25720.16

Since the amount is more than $25000 so the deal to receive the money after 2 years will be better.

5 0
3 years ago
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whe
PSYCHO15rus [73]

Answer:

see below

From online search the situations as a below:

a. The government gives consumers a subsidy to buy hybrid cars.

b. More automobile producers start producing hybrids.

c. The price of non-hybrid cars falls.

d. The price of batteries for hybrid cars rises.

e. Gasoline prices rise.

Explanation:

A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.

b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.

c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.

d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.

Both the demand and curve curves will not increase.

e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.

6 0
3 years ago
After considering the Burberry story, identify which business-level strategy the company is attempting to pursue?
slamgirl [31]

Answer:

The answer is "Option a".

Explanation:

The concentrated product differentiation wants to deliver unique characteristics which satisfy the business requirements of a specific market. Many companies who adopt a focused product differentiation focus exclusively on a certain distribution platform, also including selling upon on the Internet alone.

By studying that tale of Burberry, the company is trying it develop a strategy of places in the world. The strategy of places in the world involves the arise from different of products to a limited group of customers for premium objects usually.

3 0
3 years ago
Universal Travel Inc. borrowed $497,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is paya
never [62]

Answer:

Dec 31, 2018

Interest expense                        3313.33 Dr

    Interest Payable                           3313.33 Cr

Explanation:

The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.

Interest expense = 497000 * 0.04 * 2/12   = $3313.33

7 0
3 years ago
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