Answer:
$8.00 per item
Explanation:
A company makes product and its 3% of products are faulty. There is no other quality inspection test which can identify the faulty products during the manufacturing process. The faulty products are only identified when the customer arrives to return it. The faulty product costs the company $200 each and company wants to make profit of $2.00 per item. It should charge price of $8.00
The calculation is as follows,
let selling price is 
- (0.03 * 200) = 2.00
after rearranging the equation we get;
= 2 + 6
= 8
In my opinion she shouldn't release the "confidential" information. This may put her job at risk. And I wouldn't jeopardize myself for other people. Instead she may help them in other ways after they have been laid off.
Hope this helps ya!
Answer:
Break-even point (dollars)= $9,976.25
Explanation:
Giving the following information:
Fixed costs:
Rent $2,500
Utilities $500
Interest $750
An insurance premium of $200
Advertising on local bus $250 a month
Total= $4,200
A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,200/ [(9.5 - 5.5)/9.5]
Break-even point (dollars)= 4,200/0.421
Break-even point (dollars)= $9,976.25
