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oksian1 [2.3K]
2 years ago
14

Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling pri

ce. As a result of new automated equipment, it is anticipated that fixed costs will increase by $105000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Business
1 answer:
Sonbull [250]2 years ago
7 0

Answer:

29,200 units

Explanation:

The computation of new break even point is given below:-

= Fixed Cost ÷ Contribution per unit

Fixed cost

= $625,000 + $105,000

= $730,000

Variable cost per unit = 50% of selling price

= $25

So, the break even point = $730,000 ÷ 25

= 29,200 units

Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.

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Explanation:

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3 years ago
A seller's costs are a $14,700 commission, $3,150 in excise tax, $650 for a buyer's policy of title insurance, $250 in escrow fe
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Answer:

Seller's proceeds = $66,300

Explanation:

Given:

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Seller's proceeds = (Purchase price receive + Refund on property taxes paid in advance) -  (Seller's costs + Commission + Excise tax + Escrow fees + Loan payoff)

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valuable to a firm even though liquid assets tend to be less profitable to own

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