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
Alchen [17]
3 years ago
5

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable co

sts per unit are $5, total fixed costs must be:
A. $65,000.
B. $90,000.
C. $125.000.
D. $215,000.
E. $275,000.
Business
1 answer:
kari74 [83]3 years ago
5 0

Answer:

B. $90,000.

Explanation:

Contribution margin = Selling price - variable cost

Contribution margin = $11 - $5 = $6 per unit

Total Contribution margin = number of units sold x contribution margin per unit = 250,00 x $6 = $150,000

As we know that

Pretax income = Total contribution margin - Fixed cost

$60,000 = $150,000 - Fixed cost

Fixed Cost = $150,000 - $60,000

Fixed Cost = $90,000

You might be interested in
Suppose the economy is in a recessionary gap. to move equilibrium aggregate output closer to the level of potential output, the
prisoha [69]
The best option is to decrease taxes.
5 0
3 years ago
Which of the following are not traits of entrepreneurs?
Phantasy [73]

Answer: dishonesty and dependence.

Explanation:

8 0
3 years ago
Shelly, a sales manager at Best Computers, has recently moved from Dallas to Hong Kong for an expatriate assignment. Shelly is f
Alecsey [184]

Answer:

culture shock

Explanation:

It seems that Shelly is most likely experiencing culture shock. This is a set of feelings that occurs to most individuals when they move to a location that is very different than their home. Since Shelly moved from the US to China and the culture is completely different, it causes Shelly to not feel comfortable in this new location. Individuals experiencing culture shock experience many distinct feelings but ultimately adjust to the new environment and begin getting comfortable in this new location.

6 0
3 years ago
You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento
Contact [7]

Answer:

The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)

Explanation:

There are 3 key elements of working capital. These are;

  • Inventory
  • Accounts payable
  • Accounts receivable

Given;

increase in inventory = $8,000

increase in Accounts payable = $2,500

Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500

= -$5,500

8 0
3 years ago
Moonlight Company sells $ 300 comma 000 of 9​%, 15​-year bonds for 67.0453 on April​ 1, 2018. The market rate of interest
Lubov Fominskaja [6]

Answer:

Interest expense for the year: 33,590.33

Explanation:

face value $ 300,000

rate 9%

time 15 years

issued at   $  201, 136

discount:  $    98, 864

amortization per year under straight-line: the discount is equally distributed for each period

98,864 / 15 = 6,590.33

<u><em>interest expense per year:</em></u>

face value x rate + amortization:

300,000 x 0.09 + 6,590.33 = <em>33,590.33</em>

3 0
3 years ago
Other questions:
  • _____ work for a manufacturer and promote the manufacturer's products to other firms that buy the products from distributors or
    13·1 answer
  • Brief exercise 1-9 at the beginning of the year, morales company had total assets of $816,000 and total liabilities of $526,000.
    7·1 answer
  • What determines our ability to purchase things we want and/or need?
    11·1 answer
  • You have been assigned as the project manager for a new project that involves deployment of a new software application to all th
    11·1 answer
  • If total spending rises from one year to the next, then Select one: a. either the economy must be producing a larger output of g
    7·1 answer
  • If more capital is produced in a given year, what can be expected to happen?
    6·1 answer
  • Hayword, Inc. uses weighted-average costing and has two departments and has provided data related to its mixing department for t
    10·1 answer
  • The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:
    15·1 answer
  • What basically compares what an individual owes compared with how much they earn monthly?
    11·1 answer
  • New classical economists believe that an increase in deficit financing by the government will
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!