1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miskamm [114]
3 years ago
9

Which of the following will lower the breakeven point? (1)- a decrease in the sales price per unit (2)- an increase in total fix

ed costs (3)- an increase in the variable costs per unit (4)-an increase in the sales price per unit
Business
1 answer:
Pavlova-9 [17]3 years ago
8 0

Answer: (4) An increase in the sales price per unit

Explanation:

  The break-even point is the point of the production level where the total expenses are gets equal to the total revenue. During the manufacturing process, the break-even point produces the equal amount of revenue as compared to the expenses in the accounting period.  

The break even point formula are mainly expressed in the units and it is expressed as:  

 = Fixed cost ÷ Contribution per unit

According to the formula, if the sales price per unit gets increased then, the the break-even pint gets decreased.

 

You might be interested in
Park Company reports interest expense of $340,000 and income before interest expense and income taxes of $6,120,000.(1) Compute
algol13

Answer: 1. 18 times

2. Park is in better position

Explanation:

1. Times interest earned is a financial ratio that measures interest coverage. It's essentially to check if a company can pay it's debt payments and is calculated by either EBIT or EBITDA divided by the total interest expense. The higher the better and anything above 2.5 times is usually considered.

Calculating would therefore be,

= $6,120,000 /$340,000

= 18 times.

2. As mentioned in the first answer, for the Times interest earned, the higher it is, the more favourable it is. So Park Company will be considered safer and are most definitely in a better or worse position than its competitor to make interest payments if the economy turns bad. The fact that theirs is 18 means that they can pay off their interest expense 5 times more than their competitor who can only repay 12 times.

If you need any clarification do comment.

7 0
3 years ago
ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage
ikadub [295]

Answer:

a. Operating Income = Sales - Production Cost - Depreciation Expense

Operating Income = $100,000 - $82,600 - $6,000

Operating Income = $11,400

b. Average Investment = (Initial Equipment Cost + Residual Value) / 2

Average Investment = ($60,000 + $0) / 2

Average Investment = $60,000 / 2

Average Investment = $30,000

c. Accounting Rate of Return = (Operating Income / Average Investment) * 100

Accounting Rate of Return = ($11,400 / $30,000) * 100

Accounting Rate of Return = 0.38 * 100

Accounting Rate of Return = 38%

7 0
2 years ago
The amount of the check is written in how many places?
Evgen [1.6K]
2

In numerical form on the left and written out on amount line
4 0
3 years ago
Read 2 more answers
Why is it important to understand economics
Nookie1986 [14]
Macroeconomics is important because it allows the public to understand the economy as a whole, fiscal policy and global economic policy.
5 0
3 years ago
An economic decision will affect all people, regardless of how they feel or believe
Serjik [45]
Wait is this a question? But yes, this is true.:-)
8 0
3 years ago
Read 2 more answers
Other questions:
  • A law or set of laws are created to give a policy legal force
    10·1 answer
  • The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value w
    14·1 answer
  • John worked 43 hours last week. His hourly rate is $9.00. He has the following deductions taken from his pay: Social Security ta
    11·1 answer
  • Herring Corporation has operating income of $265,000 and a 25% tax rate. The firm has short-term debt of $110,000, long-term deb
    13·1 answer
  • Which one of the following statements about best practices is false?
    9·1 answer
  • For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos
    9·2 answers
  • The demand for organic produce is growing. Green Acres Farms grows only organic vegetables. In a SWOT​ analysis, the rising dema
    6·1 answer
  • e Department of Traffic Security of a city is considering the purchase of a new drone for aerial surveillance of traffic on its
    5·1 answer
  • If you have a balance of $1,000 on your credit card, and the interest rate is 17¾% a year, in order to pay off the $1,000 in 5 y
    8·1 answer
  • Conner walked past the candy section in the grocery store and quickly stuffed a handful of candy bars into her purse. A store se
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!