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Ilia_Sergeevich [38]
3 years ago
8

Lisa’s Custom Print Services produces and sells custom seashore prints. The manager reported $5,400 in fixed expenses, operating

income of $0 at the breakeven point, and a contribution margin per unit of $50. What is the firm’s breakeven point in units using the shortcut approach?
Business
1 answer:
VMariaS [17]3 years ago
8 0

Answer:

108 units

Explanation:

break even point in units = total fixed costs / contribution margin per unit = $5,400 / $50 = 108 units

There are three methods to obtaining a break even point and they all should result in the same answer: equation method, the formula method (or shortcut), and in dollar sales and sales units.

The formula method is also called the shortcut because it's the simplest way.

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The most preferred technique for determining how much life insurance coverage is needed for an individual is:
beks73 [17]

<span>In dermining how much life insurance coverage is needed for an individual , you have to consider first, to determine annual income needs of your family if you were to die today. Because you have to consider any lifestyle changes that might happen after te death and include current expenses such as mortgage, rent, groceries, clothing, utility bills, entainment, travel, transportation and child care. Next, you have to subtract available income from annual income needs. Then, determine the principal needed to generate income to be replaced (annual income to be replaced) devided by (rate of return) = amount of principal needed. Next, Add one-time expenses of your survivors will have to pay including funeral expenses. Lastly you have to subtract one-time gains such as the total amount of money or profit that is made from other life insurance policies, assets from selling a business or other payouts.</span>

5 0
3 years ago
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc
lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

                         =0.50(78,260.87)+0.50(101,739.13)

                         =$90,000

So the answer is B) $90,000

5 0
3 years ago
If you were advising which actions a company should take to perform value chain activities more cost effectively, you would not
Shalnov [3]

Answer: redesign its products to eliminate those features that might have market appeal, but would excessively increase production costs.

Explanation:

The main aim of every organization are typically cost minimization and profit maximization. If I wanted to advise a company on the kind of actions to take to perform value chain activities more cost effectively, I'll tell them to improve their supply chain efficiency as well as use economies of scale and effective utilization of its resources.

Therefore, redesigning its products to eliminate those features that might have market appeal, but would excessively increase production costs is wrong as this will only lead to increase in cost.

4 0
3 years ago
Elisa was involved in three auto accidents this year. Even though none was her fault, her insurance company increased her rates.
Ket [755]

Your insurance carrier might have to raise your rates to pay for the vehicle's damage or medical if a person involved needs it.

5 0
3 years ago
Which of the following steps is NOT a basic step followed by PERT and​ CPM?
vodomira [7]

Answer:

D.

Explanation:

PERT and CPM are network planning techniques.

PERT means Program Evaluation and Review Technique.

CPM means Critical Path Method.

The six steps more common to PERT and CPM are:

-Define the project and identify each activity.

-Develop relationships among the activities.

-Draw the network connecting all of the activities.

-Adding time and/or cost estimates to each activity.

-Compute the longest time path through the network. This is called the critical path.

-Use the network to help plan, schedule, monitor and control the project.

5 0
3 years ago
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