Answer:
Option (A) is correct.
Explanation:
Given that,
Estimated fixed cost = $288,000
Estimated variable cost = $14 per unit
Units expects to produce and sell = 60,000
Selling price = $20 per unit
We first need to calculate the contribution margin:
Contribution margin per unit:
= Selling price - Variable cost
= $20 - $14
= $6
The break even point in units is the ratio of fixed cost to the contribution margin per unit.
Break-even point in units:
= Fixed cost ÷ Contribution margin per unit
= $288,000 ÷ $6
= 48,000 units
They would need way more credit and more money to pay for it
Detereation of muscle tissue causing weakness in the limb
The suggestion suitable for Juan’s situation is for Juan to
check out the enterprises zones in the Colorado. Having to check this out will
help him to know where to locate his small business and to have a solution in
terms of limiting his tax liability in his business.