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kolbaska11 [484]
2 years ago
11

If the company can produce and sell no more than ​units, should it do​ so? A. . Since is equal to the​ break-even quantity, prod

uction of the product produce a profit. B. . Since is than the​ break-even quantity, production of the product produce a profit. C. . Since is than the​ break-even quantity, production of the product produce a profit. D. . Since is than the​ break-even quantity, production of the product produce a profit.
Business
1 answer:
k0ka [10]2 years ago
7 0

Answer: D.No. Since 26 is less than the break-even quantity, production of the product cannot produce a profit

Explanation:

At Breakeven the company will be making $0 in profit. The break-even number of units will therefore be;

0 = Revenue - costs

0 = 520x - (390x+15,340)

0 = 520x - 390x - 15,340

0 = 130x - 15,340

130x = 15,340

x = 118 units

As the break-even point is 118 units, anything below this will yield a loss. As the company has a capacity of 26 units, this is below the breakeven point so the company should not produce the good as they will surely make losses.

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2 years ago
Mountaintop Sports Inc. issued $200,000 of 10-year, 6% bonds, with interest payable semiannually on June 30 and December 31 each
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The amount should be recorded as interest expense in the journal entry made each six months is $6,000

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In order to calculate the amount should be recorded as interest expense in the journal entry made each six months, we have to calculate the interest annually with the following formula according to the given data:

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Therefore, the interest semiannually would be calculated as follows:

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The amount should be recorded as interest expense in the journal entry made each six months is $6,000

4 0
3 years ago
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2 years ago
Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy. Further, suppo
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Answer:

d. All of the above are correct.

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