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ANEK [815]
3 years ago
8

A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold f

or $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
Business
1 answer:
Lelechka [254]3 years ago
3 0

Answer:

To break even the company must sell

Explanation:

The position at which the company is at no profit and loss position then it is said that the company is at breakeven position.

Break-even position can be found from the following position:

Breakeven position = Fixed cost /  contribution per unit

The fixed cost here is initial investment which is $9900 and the contribution can be found by taking the difference between selling price per unit and variable cost per unit. The contribution per unit is $0.55 per unit ($1.2 - $0.65). By putting values in the above equation we have:

Breakeven position = $9900 / $0.55 per unit = 18000 Units

So 18000 units are required to sell to reach at a no profit no loss position.

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On December 31, 2017, Ivanhoe Company had $1,313,000 of short-term debt in the form of notes payable due February 2, 2018. On Ja
gizmo_the_mogwai [7]

Answer:

They should be reported in 2 different parts, first under current liabilities as:

  • Notes payable $269,000

Then under long term liabilities:

  • Notes payable expected to be refinanced $1,044,000

Explanation:

the total short term notes payable on December 31 = $1,313,000

  • $1,044,000 were paid off by issuing common stocks, so that portion of the debt must be reported as notes payable expected to be refinanced (or refinanced debt)
  • the remaining $269,000 which were paid using cash reserves must be reported as current notes payable

5 0
3 years ago
Harlan Bikes wants to close an unprofitable division with an expensive mortgage, high advertising costs, and high raw material c
Rudiy27

Answer:

Quantitatively, Harlan Bikes is justified in deciding to close the department, but there are other qualitative factors that need to be considered which may result in the company loosing much more that they can save if the department is closed, such as for example a decrease in employee morale, a negative signalling effect to other stakeholders, a drop in sales in related products etc.

Explanation:

A decrease in employee morale can result especially if workers  in other departments are no-longer sure about their future in the company, resulting from fears of their departments being closed. This can negatively affect productivity resulting in lower profits in other department.

A negative signalling effect means that other stakeholders such as investors and creditors may start questioning managements ability to profitably run the business, and the company will be perceived as more risky. Cost of debt and cost of equity capital for example, may go up, due to this higher perceived risk, and  which may reduce the number of positive net present value projects that the company can undertake due to an increase in cost of capital.

If the company carries related products in other departments, it may also see a drop in sales in those sales, which will effectively reduced the savings that are estimated  to be gained from closing the division.

7 0
3 years ago
The term ""umbrella insurance"" means a policy that provides coverage when a lawsuit is brought over injuries or damage the insu
shepuryov [24]

Answer:

The correct answer is Travelers Company.

Explanation:

An Umbrella Insurance Policy is a type of coverage that goes beyond traditional insurance for homes, cars and boats. To understand what an Umbrella Insurance Policy is, it is worth analyzing your coverage. This kind of policy protects against vandalism, slander, defamation and invasion of privacy, as well as claims for damages caused to other people or property in accidents. An Umbrella Insurance Policy is very useful when, for example, a person causes a car accident and their original policy does not cover all the medical expenses of those affected. This kind of policy is suitable for individuals with many assets or high-value assets that are highly likely to suffer lawsuits.

7 0
3 years ago
The management of a company wants to begin electronically monitoring the computer work of the employees who process claims filed
iragen [17]

In this HR department can  best address this concern by application of  data to employee development programs to support the to employees  advance in their careers.

<h3>What is employee development program?</h3>

An employee development program can be described as kind of a training program that  is been given to employee by their employer to help them to improve their skills and abilities.

Therefore, since management of a company wants to begin electronically monitoring the computer work of the employees . then the program can be applied.

learn more about employee development program at brainly.com/question/3653791

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8 0
2 years ago
How do major automobile manufacturers source their components? Multiple Choice
crimeas [40]

Answer:

c

Explanation:

Sources that are located in the same city as the manufacturing plant through the use local employees, local suppliers and also helping locals and environment.

5 0
3 years ago
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