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tatyana61 [14]
3 years ago
15

Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. D

etermine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $400,000 units
Business
1 answer:
lakkis [162]3 years ago
8 0

Answer:

a. Break-even point in sales units = 350,000 units

b. Break- even point in sales units to achieve a target profit of $400,000 = 430,000 units

Explanation:

a. Break-even point in sales units = Fixed cost ÷ Contribution margin per unit

= $1,750,000 ÷ $5

= 350,000 units

Working note:- Contribution margin = $15 - $10 = $5

b. Break- even point in sales units to achieve a target profit of $400,000 = fixed cost + Targeted profit ÷ Contribution margin per unit

= $1,750,000 + $400,000 ÷ $5

= $2,150,000 ÷ $5

= 430,000 units

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A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machi
vampirchik [111]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.

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

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

<u>1 machine:</u>

Break-even point in units= 2,100/ (45 - 17)

Break-even point in units= 75 costumers

<u>2 machines:</u>

Break-even point in units= 3,900/ 28

Break-even point in units= 139 costumers

If the demand is from 90 to 120 costumers per day, the company should buy 1 machine. <u>With this level of demand, the company will not cover the costs of two machines. </u>

7 0
3 years ago
Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario
const2013 [10]

Answer: b. 36 years under scenario A, versus 18 years under scenario B.

Explanation:

The Rule of 72 is a rule in finance that will allows for the calculation of how long it will take for an investment to double given its interest rate.

The time is calculated by dividing 72 by the interest rate in question.

Scenario A

= 72/2

= 36 years.

Scenario B

= 72/4

= 18 years.

6 0
3 years ago
A speaker says, "because the japanese make the best stereo sound systems in the world, you should consider buying a japanese-mad
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<span>The speaker is using the fallacy of building on an unproven assumption. The speaker has made the assumption that the Japanese make the best stereo sound systems in the world. This is merely his/her opinion, and is not a proven fact. Thus, when the speaker bases another argument on that assumption, he has used a fallacy in reasoning.</span>
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3 years ago
As a manager seeks to develop her leadership skills, she should be aware that:
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Answer:

b. Many different styles of leadership can be effective.

Explanation:

Leadership is the ability of a person to motivate others to deliver on set goals and objectives.

Depending.on the organisation, the goals to be achieved, needs of the followers, and the personality of the leader.

There are different leadership styles that are all effective depending on the situation

Authoritative leaders states the way things should be done with little input from the team.

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Free rein is when the leader allows the team do what they like in achieving goals.

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7 0
3 years ago
bought 2,000 shares of Print Company stock for $12,780. She sold the stock for $7 per share and paid a sales commission of $26.
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Answer:

$1,194

Explanation:

The buying price of the shares was  $12,780

The selling price was $7 dollars for each.

The total amount realized is 2000 share  x $ 7

=$14,000

The commission paid is $26

Net amount obtained is $14,000 -$26

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Profit will be $13,974 -$12,780

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6 0
3 years ago
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