A logistics manager ordering parts wants to choose a mode of transportation

Assume the sales price is $10 per unit, variable cost is $5 per unit, and fixed cost is $1,000. How would the break-even point i

Oxana [17]

Answer:

it would increase by 300 units

Explanation:

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

Initial breakeven = 1000 / (10 - 5) = 200

New breakeven = 1000 /(10 - 8) = 500

Change in breakeven = 500 - 200 = 300

8 0

3 years ago

Read 2 more answers

Fresnas Inc. is a furniture manufacturing company. It has taken the initiative of incorporating social responsibility as one of

Evgen [1.6K]

Answer:

Green marketing.

Explanation:

Green marketing is promotion and selling of products that are environmental friendly. The product should be produced in an envimentally friendly process and should be sustainable. As is seen in the example of Fresnas Inc, they are using recycling as a sustainable environment friendly process to produce goods, while making more profit.

7 0

3 years ago

CII, Inc., invests $630,000 in a project expected to earn a 12% annual rate of return. The earnings will be reinvested in the pr

Gelneren [198K]

Answer:

$1,956,684

Explanation:

As the project has a expected annual return, we have to calculate future value of this investment to find how much money Cll, Inc. will have after 10 years to reinvest.

We know,

FV = PV × $(1 + i)^{n}$

Given,

Present Value, PV = $630,000

Annual rate of return, i = 12% = 0.12

Number of period, n = 10 years

Putting the value into the above formula, we can get,

FV = $630,000 × $(1 + 0.12)^{10}$

FV = $630,000 × 3.105848

FV = $1,956,684

$1,956,684 can be reinvested after the liquidation of 10 years.

8 0

3 years ago

Buying office space is ______________ in the long run-in comparison to leasing. Which is the correct answer?

Vedmedyk [2.9K]

Answer:

less expansive

Explanation:

i took the test. i got it right

5 0

2 years ago

budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed are called:

Natali [406]

Budgets that are revised by adding a new quarterly budget to replace the quarter that has just elapsed are called rolling budgets.

<h3 /><h3>What is rolling budget?</h3>

It corresponds to a more flexible and adaptable type of budget, generally used for companies whose business can be more volatile.

It is used continuously and extended, being updated during the period for the addition of new variables in the existing model. This being valid for use in the future budget.

Any type of budget is a necessary tool for organizations to be able to plan the use of their resources in a structured way that is consistent with their needs and objectives.

Therefore, a continuous or rolling budget helps companies adapt to trends, risks and characteristics of a dynamic market that is constantly changing.

Find out more about rolling budget on:

brainly.com/question/23209198

#SPJ1

6 0

1 year ago