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coldgirl [10]
3 years ago
10

Umbridge Purses Unlimited sells purses with a sales price of $35 each. Each purse costs the company $20 to produce, and the stor

e incurs a total of $300,000 in fixed costs each year. What is the yearly breakeven point in units?
a. 8,572 purses
b. 10,000 purses
c. 15,000 purses
d. 20,000 purses
e. None of the above
Business
1 answer:
aivan3 [116]3 years ago
3 0

Answer:

Break-even point in units= 20,000 units

Explanation:

Giving the following information:

Selling price= $35

Unitary variable cost= $20 t

Total fixed cost= $300,000

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 300,000/ (35 - 20)

Break-even point in units= 20,000 units

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Soft drink manufacturers face (a) ________.
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Answer:

The correct answer is (A)

Explanation:

Soft drink manufacturing industry faces a high threat of substitutes. Not many soft drink brand exit the market but many new companies and brand enter. Similarly, that is the reason why prices of soft drink do not fluctuate as compare to other food items. The competitive environment in the soft drink industry creates a high threat of substitutes.

6 0
3 years ago
The natural rate of unemployment- also called full employment- means
nignag [31]

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Explanation:

5 0
2 years ago
A decrease in energy prices will: decrease short-run aggregate supply. increase short-run aggregate supply. decrease aggregate d
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Answer:

increase short-run aggregate supply.

Explanation:

Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.

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7 0
2 years ago
Halverstein Company's outstanding stock consists of 9,450 shares of cumulative 5% preferred stock with a $10 par value and 4,050
Vsevolod [243]

Answer:

e. $6,000 preferred; $0 common.

Explanation:

The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.

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2015

Cash dividends                                  = $0

Preference Stock dividend Paid      = $0

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No Common Stock Dividend

2016

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Preference Stock dividend Paid      = $6,000

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4 0
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solong [7]
Make-Or-Buy Decision<span>
</span>
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