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vredina [299]
2 years ago
5

A manufacturer has a monthly fixed cost of $50,000 and a production cost of $7 for each unit produced. The product sells for $16

per unit. If the manufacturer produces and sells 3,000 units per month, indicate whether he will have a profit, loss or break-even.a. Profitb. Break-evenc. Lossd. None of the above.
Business
2 answers:
Oxana [17]2 years ago
8 0

Answer:

The manufacturer will have a c. Loss

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit)  = $50,000/($16-$7) = $50,000/$9 = 5.556 units (rounding)

The manufacturer produces and sells 3,000 units per month < Break-even point in units. Therefore, the manufacturer will have a loss

Leviafan [203]2 years ago
5 0

Answer:

c. Loss

Explanation:

To break even, the total units sold would result in the total cost being equivalent to the total sales. As such, break even is the point where profit/loss is nil. Where sales is more than cost, the company makes a profit, otherwise a loss.

Given fixed cost = $50,000

Production cost per unit = $7 (variable)

Selling price per unit = $16

Units sold = 3,000

Profit/loss = sales - cost

= 16(3000) - (7(3000) +50,000)

= 48,000 - 71,000

= $23,000

This is negative as such as a loss.

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Jack invests $6,000 at age 28. He hopes the investment will be worth $300,000 when he turns 60. If the interest compounds contin
Alex787 [66]

Answer: 12.12 percent

Explanation:

6 0
2 years ago
Read 2 more answers
The manufacturing cost per unit for absorption costing is:
saveliy_v [14]

Answer:

Always higher than manufacturing cost per unit for variable costing.

Explanation:

Absorption costing continuously contains fixed overheads similarly while computing the manufacturing cost.  

Conversely, under variable costing only adjustable overheads were included.

Thus, the manufacturing cost under absorption costing method is always higher than variable costing method  

Therefore, per unit cost will always be higher under absorption costing than in variable costing.

So, option C is the correct option

3 0
3 years ago
Purdum Farms borrowed $24 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annu
elena-s [515]

Answer:

The amount of $4.8 million will be reported as current liabilities on 31 December 2018 and the amount of $14.4 will be reported as long term liabilities.

Explanation:

The current liabilities are the short term liabilities or obligations that a business is expected to pay or settle within a year's time period. The long term liabilities, on the other hand, are the liabilities or obligations which are due to be paid any time more than a year.

The outstanding amount on Note Payable on 31 December 2018 after the first repayment will be, 24 - 4.8 = $19.2 million

Out of the $19.2 million that is outstanding, $4.8 million are to be paid on 31 December 2019 that is within a year. Thus, this amount will be reported as a current liability as it is payable within a one year period.

The remaining amount of 19.2 - 4.8 = $14.4 million will be reported as a non current liability as it is payable after more than a year from today.

8 0
3 years ago
Compute the Work-in-Process transferred to the finished goods warehouse on April 30 using the following information: Work-In-Pro
Lunna [17]

Answer:

$700

Explanation:

Given that

Work-In-Process inventory, April 1 = $200

Direct materials used in production = $125

Direct labor costs incurred = $300

Manufacturing overhead costs = $250

Work-In-Process Inventory, April 30= $175

The computation work-in-progress transferred to the finished goods is given below :-

= Work-In-Process inventory, April 1 + Direct materials used in production + Direct labor costs incurred + Manufacturing overhead costs - Work-In-Process Inventory, April 30

= $200 + $125 + $300 + $250 - $175

= $700

5 0
2 years ago
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