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Allisa [31]
3 years ago
6

Assume that Corn Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution marg

ins for Products A and B are $34 and $57, respectively. Corn has fixed costs of $378,000. The break-even point in units is
Business
1 answer:
Lesechka [4]3 years ago
6 0

Answer:

9,792.75 units

Explanation:

The formula to compute the break even point in units is shown below:

Break even point in units = Fixed cost ÷ Weightage average Contribution margin per unit

where,

Fixed cost is $378,000

And, the Weightage average Contribution margin per unit is

= (Total contribution margin) ÷ (Total sales units)

= (8,000 units ×$34 + $2,000 × $57) ÷ (8,000 units + 2,000 units)

= ($272,000 + $114,000) ÷ (10,000 units)

= ($386,000)  ÷ (10,000 units)

= $38.6 per unit

Now the break even point in units is

= $378,000 ÷ 38.6 per unit

= 9,792.75 units

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Answer:

$12

Explanation:

The standalone price is the price at which the seller (Verma) would sell its products or services (discount coupon) separately to other customers.

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= $60 x 20% = $12

3 0
3 years ago
Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and polit
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8 0
3 years ago
What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expec
zhenek [66]

Answer:

Confidentiality

Explanation:

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Cheers

4 0
3 years ago
Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, th
Temka [501]

Answer:

Please see explanation below.

Explanation:

Public goods are goods consumed collectively, they are provided for all members of a community,

no one can be excluded from their consumption. The consumption by one person does not decrease the consumption possibilities for others. Public goods are available for everybody without paying, and these goods cannot be rationed: they are either provided for the whole community, or for no one. Examples of public goods include the public lighting system, public roads, radio broadcasts, national defence, lighthouses, town pavements, etc.

Private goods, on the other hand, are goods consumed individually, and if a unit has been consumed by

someone, then no one else can also consume the same unit. Private goods are scarcely available, and consuming a unit will decrease the amount available for further consumption. Therefore consumers compete for private goods, i.e. private goods are rival in consumption. Consumers can consume them if they pay the price, non-payers are excluded from consumption.

In the first scenario, given that both the private good and public good are perfect substitutes, the optimum quantity produced by the government is at the point where marginal social cost is equal to the marginal social benefit. This optimum output is lower than that of the private firm because the price of public good is higher than price of private good (since marginal social cost > marginal private cost).

If b increases, that means consumers are willing to give up more units of public goods for one unit of the private good. Therefore, the quantity produced by the government will reduce.

For the second part of the question: C = aG, where a > 0.

This implies that equal or more units of the private good is consumed with a particular units of public good. The optimum output still remain at the point where marginal social cost is equal to marginal social benefit but this output level is lower than if the two goods were to be perfect substitutes.

7 0
3 years ago
This problem has been solved!
velikii [3]

hey there!:

1)

a) Amount of credit the company would receive against the FUTA tax for its SUTA contributions = 2896.21

(56900*3.1%*90%)+(56900*(5.4%-3.1%)) = 2896.21

b)  Amount that Peroni Company would pay to the federal government for its FUTA tax = 517.79

(56900*6%)-2896.21 = 517.79

c) Amount that the company lost because of its late payments = 176.39

=517.79-(3414-1763.9-1308.7) = 176.39

Hope that helps!

4 0
3 years ago
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