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Sliva [168]
3 years ago
5

You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt. The labor cost is $5 per shirt

. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year. Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity? a. 8,000 shirts b. 16,000 shirts c. 5,334 shirts d. 3,200 shirts
Business
1 answer:
Ad libitum [116K]3 years ago
8 0

Answer:

Option (a) is correct.

Explanation:

Contribution per unit:

= Selling price per unit - Variable cost

= Selling price per unit - (Material  + labor cost)

= $25 - ($10 + $5)

= $25 - $15

= $10

Fixed cost = Administrative cost + Sales and marketing expense

                 = $60,000 + $20,000

                 = $80,000

Break-even quantity:

= Fixed cost ÷ Contribution per unit

= $80,000 ÷ $10

= 8,000 shirts

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Within economics, the theory of scarcity says that there are unlimited wants and a finite amount of resources. However, history
nika2105 [10]

Answer:

According to the economists, the resources are scarce and human wants are unlimited. So, it is difficult to satisfy each and every want of people. But according to the theory of abundance, we can overcome from this problem by division and specialization of labor. If there is a proper division of labor according to their specialization then this will increase the productivity and one can produce more goods with the same level of resources.

From this economic practice, we can overcome from the problem of scarce resources.

8 0
3 years ago
Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Opera
elena-s [515]

Answer:

The Net Cash Flow is $9,300,000.

Explanation:

A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:

                             Ruston Company

                       Statement of Cash Flows

                              For the Year 2020

<u>Details                                                                    $'000    </u>

Net Income                                                            9,100

Adjustments from Operating Activities            <u>    1,100  </u>

Net Cash Flow from Operating Activities         10,200

Net Cash Flow from Investing Activities           (4,300)

Net Cash Flow from Financing Activities of   <u>    3,400  </u>

Net Cash Flow                                                <u>     9,300  </u>

Since the amount is in thousands, that implies that  the Net Cash Flow is $9,300,000.

7 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000
Dima020 [189]

Answer:

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

Explanation:

Giving the following information:

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,220,000/1,020,000

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

5 0
3 years ago
. Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the act
Phoenix [80]

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. Read below on fixed costs.

<h3>What are fixed costs?</h3>

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. Cost per unit changes inversely to changes in the activity base. Total cost remains the same regardless of changes in the activity base.

Therefore, the answer is option A. vary with the costs of the activity.

learn more about fixed costs: brainly.com/question/3636923

8 0
2 years ago
What is the purpose of the 1040 series of tax forms?
melamori03 [73]
It is the standard (IRS) form that individuals use to file their annual  income tax returns
6 0
3 years ago
Read 2 more answers
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