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
Leno4ka [110]
3 years ago
12

A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department.

Fixed costs of $25,000 per month are allocated to the felt- tip operation, and variable costs are 37 cents per pen.
Find the break-even quantity if pens sell 1$ each.
Business
1 answer:
Lorico [155]3 years ago
5 0

Answer: Break even Point = 39683 units  

Explanation:

Break even Point

break even point units is the number of units a firm needs to sell in order to cover the total cost  of production. it is the point where the company makes no profit or loss. Break even point units is calculated by dividing fixed cost with contribution margin  which is the Sell price minus Variable cost  

Fixed costs = $25000

selling Price = $1

variable costs = 0.37 cents

break even point units = Fixed Costs/ (selling price - variable costs)

Break even Point Units = 25000/ (1 - 0.37)

Break even Point units = 39682.53968 =  39683 (rounded off)

The demand forecast is 30000 units while the break even point units is 39683 units. The company (Producer of felt tip pens) will not make profit from the expected demand simply because  the amount of units required to cover total production costs (to break even) is higher than the demand expected.  The company will not be able to sell enough units

You might be interested in
A good example of a ______________ offense is selling alcoholic beverages to a minor
laila [671]
Minor criminal offense, specifically a strict liability offense. Strict liability refers to an offense made regardless of the the intent of action. In other words, even if you have no malicious intent, you are still liable for the offense. Another example is possession of drugs. 
4 0
3 years ago
What is another way to express class rank?
Vadim26 [7]

Answer:

The answer is C.

Explanation:

Class rank is a measure of how a student's performance compares to other students in his or her class. It is commonly also expressed as a percentile.

8 0
3 years ago
Read 2 more answers
True or false: production runs can be scheduled in one or two shifts.
irina1246 [14]
The answers are as follows:
1. TRUE.
Shift schedule is a practice used in manufacturing industries to increase the numbers of hours that is used in production process. The shift divides the hours in the day into specific period and assign teams that will work during each period. The shift practice is usually employed in production run in order to ensure efficient use of all resources during the production process. Production run are typically schedule into one or two shifts; which may be during the day alone or during the day and night.
2. FALSE
Hiring the needed complement will eliminate OVERTIME, not the second shift. Hiring the needed complement usually remove the need for all overtime. Hiring the needed complement will make having a second production run team possible and this second team can handle the production process that ought to be done through overtime.
3. FALSE.
It is the duty of the management to strive to DECREASE STAFF TURNOVER.
Staff turnover refers to the rate at which employees are leaving a company and new employees are been absorbed. High staff turnover will make the company to spend more money on resources and training of new staffs.  
4. TRUE.
During periods of high demand, production usually increases and more workers are hired. Instead of hiring more workers, a company that has two production shifts may decide to add more workers to the first shift in order to increase the amount of work that could be done. This will result in the decrease in the number of the workers in the second shift.
5. FALSE
Increasing training hours decreases needed complement. Increasing the training hours will equip the workers with the needed knowledge which will make them more effective and productive. This will decreases the complement needed for the production process.
6. RECRUITING COST [B].
In a situation where a company has to hire more workers to the one it already has on ground as a result of increased production, then the company will have to spend extra money in the process of recruiting the needed workers.
7. DECREASE [B]
If the productive index is already at 100%, adding overtime will decreases the productivity index. This is because, overtime has a way of reducing the efficiency and the productivity of the workers, thus decreasing the amount of work done by them.
8. FALSE.
Workers training is entered in hours. The amount of training received by workers are measured in hours. The higher the training hours, the higher the amount of training which a worker has undergone and the higher will be the value of that worker to the company.
9. C
Each company is expected to have a base amount of $1,000 for each new worker that is hired. The company may decide to eliminate all other recruiting costs but this base amount can not be eliminated.
10. SEPARATION COST [C].
Separation cost are incurred when production level decreases and/ or automation level increases.
Separation cost refers to the cost that is needed to lay off an employee from an organisation. When the production level decreases or the company decide to automate their production processes, then some workers will have to be sacked and these workers have to be paid some money before they leave the company. This result in increase in the amount of money that the company will spend on separation cost.
8 0
3 years ago
What is supply-side fiscal polioy? Identify each policy action as being focused on the demand side, the supply side, or both. Dr
Advocard [28]

Answer: Please refer to Explanation

Explanation:

Supply Side Fiscal Policy focuses on how to improve the ability of companies to supply more goods to the economy. The aim being that as companies supply more, they grow more and employ more people.

Demand Side Fiscal Policy on the other hand focuses on how to give more power to the Demand side of the Economy. It holds that increasing demand leads to increased supply which is good for the economy.

Classifying the above,

1. research grants for a corporation developing new technologies. SUPPLY SIDE.

This is aimed at increasing supply by improving the ways a company is able to produce it's goods and services.

2. government-funded scholarships for college students. SUPPLY SIDE.

This is supply side because it leads to more Colleges offering placement to students.

3. stimulus packages for firms that are "too big to fail". DEMAND SIDE.

Companies considered Too big to fail usually hire a lot of people. Keeping them running leads to them being able to pay off their employees which increases the demand in the economy.

4. increasing spending on "shovel-ready" projects. DEMAND SIDE.

Shovel Ready projects are those that are ready to be initiated. By increasing spending on them, they hire people immediately and begin work which increases the income flowing to people in the economy which increases demand.

5. lowering income tax rates at all income levels. BOTH.

By lowering income tax levels people are both able to spend more which increases demand as well as able to Invest more in companies which will increases supply.

8 0
3 years ago
A business owner who takes risk describes which of the following?
arsen [322]

Answer:

A. sorry if thats wrong!

8 0
3 years ago
Read 2 more answers
Other questions:
  • Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the
    13·1 answer
  • Cash Sales Credit Sales January $ 50,000 $ 150,000 February $ 55,000 $ 170,000 March $ 43,000 $ 130,000 April $ 38,000 $ 123,000
    7·1 answer
  • Your firm offers a 10-year, zero coupon bond (i.e., coupon rate is 0%). The yield to maturity is 8.8 percent. What is the curren
    6·1 answer
  • How do job agencies help you find a job and how does it work?
    10·1 answer
  • On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 and giving a short-term note for
    6·1 answer
  • A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 an
    13·1 answer
  • Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costi
    7·1 answer
  • Does Audit services needed in Auchi polytechnic student union government? If yes,why
    8·1 answer
  • The demand for ski rentals falls when the price of lift tickets increases. This is an example of?
    13·1 answer
  • The contact between the breccia and the underlying granite is an example of a(n):____.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!