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Svet_ta [14]
3 years ago
5

Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for

$50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even
Business
1 answer:
Rama09 [41]3 years ago
5 0

Answer:

5 units

Explanation:

Breakeven point is the point or number of units sold that makes the cost equal with the revenue generated. In other words, it is the point in which the profit or loss made by an entity is 0.

Given;

Variable cost per unit = $20

Selling price per unit = $50

Fixed cost =  cost of rent = $150

Let the number of units to be sold be c

Total revenue = 50c

total cost = 20c + 150

To break even, total revenue =  total cost

20c + 150 = 50c

50c - 20c = 150

30c = 150

c = 5

Ray must sell 5 units to break even.

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The debt payments-to-income ratio is:
Phoenix [80]

Answer: The debt payments-to-income ratio is: calculated by dividing monthly debt payments (excluding mortgage payments) by net monthly income.

This ratio is a measure that analyze an person’s monthly debt payment in accordance with his/her monthly income.  

The gross income is the pay before taxes and other variables are deducted.

<em>i.e. </em><em>debt payments-to-income ratio = \frac{Total\: of\: Monthly\: Debt\: Payments}{Gross\:Monthly\:Income}</em>

<em>Therefore, the correct option is (b)</em>

5 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th
spin [16.1K]

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

4 0
3 years ago
Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $9.10. D
Marrrta [24]

The price variance for Ruby company is at an unfavorable position that is $19,415, the quantity variance stands at $6,370 (favorable condition) and the cost variance has unfavorable balance that is equal to $13,045.

<h3>What is a variance?</h3>

A variance in accounting is the distinction between a forecasted quantity and the real quantity. Variances are common in budgeting, however, you may have a variance in something which you forecast.

As per the information, we have to calculate:

a) Price variance:  (Standard Price - Actual price) * Actual Quantity

   Price variance:   ($9.10 - $9.65) * 35,300

   Price variance:  $0.55 * 35,300

   Price variance:  $19,415 Unfavorable.

b)  Quantity variance =  (Standard Quantity - Actual Quantity) * Standard Price

    Quantity variance = (7,200 * 5 -  35,300) * $9.10

    Quantity variance = (36,000 - 35,300) * $9.10

    Quantity variance = $6,370 Favorable.

C) Cost variance = $19,415 Unfavorable + $6,370 Favorable

    Cost variance = $13,045 U

Hence, The price variance for Ruby company is at an unfavorable position that is $19,415, the quantity variance stands at $6,370 (favorable condition) and the cost variance has an unfavorable balance that is equal to $13,045.

learn more about variance:

brainly.com/question/15858152

#SPJ1

5 0
2 years ago
The employees at your job have been asked to attend a mandatory training meeting. Your co-worker, Mike, doesn't want to go and h
Basile [38]
Mike's request shows that he does not demonstrate any enthusiasm towards his workplace, it also shows that he is irresponsible, which may have him end up being demoted or fired. 
Hope it was correct!   <span />
5 0
3 years ago
Read 2 more answers
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