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zhuklara [117]
4 years ago
9

If revenues are $25 per unit, variable costs are $15 per unit, and fixed costs are $400, what is the operating profit when 100 u

nits are sold?
Business
1 answer:
aev [14]4 years ago
5 0

Answer:

$1000

Explanation:

Operating income is obtained by mulitplying contribution margin by number of units sold.

i.e., operating income = contribution X units produced

revenue per unit $25

variable cost $ 15

Units 100

Contribution margin = sales price per unit(revenue) - variable costs

=$25-$15 = $10

Operating income= $10 x 100

=$1000

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A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing a
STatiana [176]

Answer:

The correct answer is c. economies of scale.

Explanation:

The situation in which a company reduces its production expenses by expanding is called economy of scale. It is a situation in which the more it occurs, the cost that the company has to manufacture a product is lower.

There is a greater benefit for every extra unit we produce. This reduction in the cost of unit manufacturing is not reduced because the price of raw materials goes down, but to take advantage of a material that we have already bought and in which we invested money in the past.

Therefore, it occurs especially in situations in which the company buys more facilities. If we buy a machinery, the way to take advantage of it is to produce more since it is the way that we get a greater benefit, by taking advantage of the same machinery to produce more products, the unit cost of each product is lower. And we will get more benefit the more we produce. This benefit will be greater since we will not have to increase manufacturing costs since we have already had it before.

3 0
4 years ago
On February 1, Alan, a single individual, purchased his first personal residence for $400,000. On July 1, Alan sold this residen
zavuch27 [327]

Answer:

Recognized gain = $60000

Explanation:

Below is the calculation:

Price of personal resident = $400000

Selling price = $460000

Since Alan purchased the house for $400000 and selling it for $460000. Therefore recognized gain can be determined by subtracting the purchase price from the selling price.

Recognized gain = $460000 - $400000

Recognized gain = $60000

3 0
3 years ago
QRT Co. received $1,560 advance from Zync Inc. as rent for the use of a building owned by QRT Co. How does this transaction affe
Serhud [2]

Answer:

a.Cash is increased, and unearned rent is increased.

Explanation:

Since in the question, it is mentioned that QRT Co. received $1,560 advance from Zync Inc. for the building use.  

We know that the cash is received which increases the cash balance but the service is not provided so it would become a liability and recorded as unearned rent.  

The unearned rent is increased which show under the current liability side of the balance sheet

Hence, both cash and unearned rent is increased

7 0
3 years ago
When the Federal Reserve lends money to banks and other financial institutions because no one else will, it is: Please choose th
inessss [21]

The Federal reserve is acting as a lender of last resort when its lends money to banks and other financial institutions because no one else will/

<h3>What is the Federal Reserve?</h3>

It is the United states central banking system that is responsible for the nation's monetary policy and regulation of the supply of money and interest rates.

One of the role of Federal reserve is to act as a lender of last resort when its lends money to banks and other financial institutions because no one else will.

Therefore, the Option A is correct.

Read more about Federal Reserve

<em>brainly.com/question/25843620</em>

#SPJ12

7 0
2 years ago
Suppose the economy is in an inflationary gap. According to neoclassical economists, what will happen
prisoha [69]

Answer:

The following portion describes the description and as per the particular context.

Explanation:

  • Sometimes when, however according to neoclassical economics, the economy would be in a monetary expansion void, the economy would rebound towards its maximum or projected production level.
  • That's because the ecosystem or the market, throughout essence, is personality. Wage levels are not going to increase. To decrease the difference, joblessness could also increase and therefore not decline.
8 0
3 years ago
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