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Svet_ta [14]
2 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]2 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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8 0
1 year ago
ranfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,0
Snowcat [4.5K]

Answer:

If discontinued, then their operating income will decrease by 168,800

It is a better deal to continue the backpack division active.

Explanation:

sales                  960,000

variable cost    (475,000)

contribution      485,000

fixed cost          (527,000)

loss                     (42,000)

if Dropped

40% of fixed cost are unavoidable

527,000 x 40% = (210,800)

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5 0
3 years ago
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Collective bargaining provides for a representative of employees to negotiate with a representative of management over labor iss
scoundrel [369]

Yes. Collective bargaining is negotiation of wages working conditions by an organized group of employees (often called a union). The union representatives meet with the employer/employer's representatives to negotiate terms.

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Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new (high-pa
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Answer:

Inferior good

Explanation:

Inferior goods are those type or the kind of goods whose demand falls or decline when the income of the person or customer or individual rises or increases.

In short, the demand of the inferior goods is related inversely to the customer or person income.

So, in this case, the person bought 10 frozen pizzas per month, but when the person start earning, then the person would not buy the frozen pizzas. The frozen pizza will be inferior good for the person as the income of the person will rise.

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3 years ago
John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction
Dominik [7]
Definitely none of these
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