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Trava [24]
3 years ago
13

Weiss Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have

presented proposals. The fixed costs are $ 50 comma 000 for proposal A and $ 75 comma 000 for proposal B. In addition to the proposed fixed costs from the two​ vendors, Weiss's management anticipates that they will have to spend $ 8 comma 000 for installations to be completed. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00. ​a) The​ break-even point in dollars for the proposal by Vendor A​
Business
1 answer:
nata0808 [166]3 years ago
7 0

Answer:

The​ break-even point in dollars for the proposal by Vendor A​ is $125,000

Explanation:

The computation of the break even sales in dollars is shown below:

Break even point in dollars = (Fixed expenses) ÷ (Profit volume Ratio)  

where,

Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = (8) ÷ (20) × 100 = 40%

And, Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $20 - $12

= $8

And, the fixed expenses is $50,000

Now put these values to the above formula  

So, the value would equal to  

= (50,000) ÷ (40%)  

= $125,000

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Answer:

The amount Laramie should record the purchase of land is <u>$6.2 million</u>.

Explanation:

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From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.

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Why does electronic commerce benefit small firms? Without e-commerce, small firms often lack the resources to expand beyond loca
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Answer:

Without e-commerce, small firms often lack the resources to expand beyond local markets.

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The following information is available from the current period financial statements:
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Answer:

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