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34kurt
3 years ago
14

Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs are $270,000. Determine

the following: Round answers to the nearest whole number. a. Break-even point in sales units units b. Break-even points in sales units if the company desires a target profit of $36,000 units
Business
2 answers:
Valentin [98]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Waterfall Company sells a product for $150 per unit.

The variable cost is $80 per unit

The fixed costs are $270,000.

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

Break-even point= fixed costs/ contribution margin

Break-even point= 270,000/ (150 - 80)= 3,857 units

Now, we have to include the desired profit in the formula:

Break-even point= (fixed costs + desired profit)/ contribution margin

Break-even point= (270,000 + 36,000)/ 70= 4,371 units

irina [24]3 years ago
4 0

Answer: A. 3857 units B.) 4371 units

Explanation:

GIVEN THE FOLLOWING ;

PRICE PER UNIT = $150

VARIABLE COST PER UNIT = $80

FIXED COST = $270,000

BREAK EVEN POINT (SALES UNIT):

Fixed cost ÷ Contribution margin

$270,000 ÷ ($150 - $80)

$270,000 ÷ $70 = 3857.14 units

B.) BREAK EVEN POINT IN SALES IF TARGET PROFIT = $36000

BREAK EVEN POINT ( SALES UNIT):

(Fixed cost + target profit) ÷ Contribution margin

$(270,000 + 36,000) ÷ $(150 - 80)

$306,000 ÷ $70 = 4371.42 units

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solniwko [45]

According to the given statement Lindsey holt purchased preferred stock.

The correct option is B.

<h3>What is the preferred stock?</h3>

Preferred stock, which is a component of share capital and is commonly referred to as a combination indicator, is an asset that has any combination of features that common shares does not, such as those of an equity and a promissory note.

<h3>How do preferred stocks work?</h3>

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I understand that the question you are looking for is:

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share and that it is a promised or contractual and constant dividend . Given this, you know for sure that she purchased which type of stock?

A. Green chip

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E. Growth

4 0
1 year ago
When might adding an additional employee be bad for a small business?
Anarel [89]

Answer:

If the demand for the product or services goes down

Explanation:

A reduction in demand for a good or service results in a decline in its price. As per the law of supply and demand, a decline in demand while holding other factors constant pushing the equilibrium price down. Reduced prices mean that the revenues obtained from the sales of the product or service will decline.

Hiring an extra worker when the demand is low will lead to losses. Low demand causes low prices, which implies that the cost of the new employee will be greater than the benefits obtained from the worker.  A reduction in prices will mean that the marginal product of labor will be lower than the cost of labor.

3 0
3 years ago
What is equilibrium?
inysia [295]

Answer:

B.

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8 0
3 years ago
Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cos
OLga [1]

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is= $4.3

Rework cost= $2.8

Selling price= $12.9

<u>Because the original cost will remain constant in both options, we will not take them into account.</u>

Sell as-is:

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Rework:

Effect on income= 1,000*(12.9 - 2.8)

Effect on income= $10,100

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4 0
3 years ago
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,
Ilia_Sergeevich [38]

Answer:

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Explanation:

The computation of the total cost of ending work in process is shown below:

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Now ending work in process is

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Hence, the  total cost of ending work in process is $39,420

3 0
2 years ago
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