1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
inn [45]
3 years ago
14

Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company sells the drug in bottles of 50 pills f

or ten dollars. They estimate that they must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills?
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer:

The total cost to produce a bottle of pill is $5

Explanation:

Break-even in unit is calculated by dividing the fixed costs by contribution per unit.

Here the breakeven is given in terms of bottles thus our unit is bottles.

Plugging in the values,

200000 = 1000000 / CM per unit

CM per unit = 1000000 / 200000

CM per unit = 5

Contribution per unit is calculated as the Selling price per unit - variable cost per unit.

If selling price per unit is $10, then variable cost per unit will be:

CM per unit  = SP -VC

5 = 10 - VC

VC = 10 - 5

VC = 5  per unit

The total cost to produce a bottle of pill is $5 as the fixed cost will vary depending on the number of units produced thus the actual cost that every one unit of bottle requires is $5.

You might be interested in
Step 4: Use the line chart to determine the approximate price of the stock at the beginning of 2003. How much money would you ha
Valentin [98]

The amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is <u>$22.81</u> ($61.81 - $39).

<h3>What is the price of stock?</h3>

The price of a share of stock is the cost that is paid to buy it or the revenue received when it is sold.

The price of a stock reflects the value that investors place on the issuing company.

Thus, the amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is <u>$22.81</u>.

Learn more about determining the price of a stock at brainly.com/question/8084221

5 0
2 years ago
Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are select
DerKrebs [107]

Answer: d. Gen Xers prize self-sufficiency and are pragmatic.

Explanation:

Gen Xers prize self-sufficiency and are pragmatic. Gen Xers prices are self sufficient that they need no external aid and they are realistic.

5 0
3 years ago
There are many food carts near Mark’s university. Mark and his friends regularly buy hot dogs from Jeff’s cart. Recently, Andrea
garik1379 [7]
Since there now is a second store, the customers will need to be shared. This means that there are less customers in Jeff's business. Therefore the answer is D: demand for his hotdogs will decrease.
4 0
2 years ago
When writing solicited application letters? __________.
eduard
C for me because i want to know more about my job 
7 0
3 years ago
Work-in-process that is being transferred into a department is debited to that work-in-process account, while work-in-process th
oksian1 [2.3K]

Answer:

True

Explanation:

Work in process refers to those goods which require further processing. When a department transfers work in process(WIP) to another department, the recipient department's stock of WIP is debited i.e debit the receiver principle.

Similarly work in process that is being transferred out of a department would be recorded like Purchase return i.e credit what goes out.

A debit in WIP account increases it's balance whereas a credit in WIP account reduces it's balance.

4 0
3 years ago
Other questions:
  • A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl
    10·1 answer
  • In the context of doing business in Asia, what is meant by the phrase "the contract is in the relationship, not on the paper"?
    13·2 answers
  • Linda Baer has already saved ​$3 comma 978 to buy a used vehicle. Ignoring taxes and assuming her money is invested in a money m
    6·1 answer
  • Will Shakespeare is a struggling playwright in sixteenth-century London. As the price he receives for writing a play increases,
    13·1 answer
  • Which of the following statements is(are) true:
    7·1 answer
  • On August 31,the balance sheet of La Brava Veterinary Clinic showed cash $9,000,Account receivable$1700,supplies $600,equipments
    12·2 answers
  • Difference between primary and secondary catering​
    7·1 answer
  • Which of the following is not the type of work done in a support department? c. maintenance work done to keep production machine
    10·1 answer
  • QUESTION 9 of 10: You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A poten
    10·1 answer
  • A) Which talent management approach better fits the SMEs context and
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!