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cupoosta [38]
3 years ago
12

A company's fixed operating costs are $430,000, its variable costs are $2.10 per unit, and the product's sales price is $6.00. W

hat is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
Business
1 answer:
Marizza181 [45]3 years ago
4 0

Answer:

110,257 units.

Explanation:

Fixed operating costs (FC) = $430,000

Variable costs (VC) = $2.10 per unit,

Sales price (P) = $6.00 per unit.

The revenue, as a function of 'n' units produced, for this company is given by:

R(n)= (P-VC)n -FC\\R(n)= (6.00-2.10)n -430,000

The break-even point occurs when revenue is zero. The break-even point is:

0= (6.00-2.10)n -430,000\\n=\frac{430,000}{3.90} \\n=110,256.41

Rounding it up to the next whole unit, the sales volume needed to reach the break-even point is 110,257 units.

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Puffy's Pastries generates five cents of net income for every $1 in equity. Thus, Puffy's has _______ of 5 percent.
kap26 [50]

Answer: return on equity

Explanation:

The return on equity is simply a measure of how profitable a business will be when it's being compared to its equity. Return on equity is the net income divided by the equity. It can also be gotten when liabilities is deducted from assets.

In the above analysis, return on equity equals 5% because 100 cents make 1 dollar. Therefore, 5/100 × 100 gives 5%.

5 0
3 years ago
The shop works two shifts per​ day, 8 hours per​ shift, 220 days per year.​ Currently, the company operates four​ machines, and
Alborosie

Answer:

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7 0
3 years ago
To take advantage of an arbitrage opportunity, an investor would
Svetach [21]

Answer:

The answer is III) make simultaneous trades in two markets without any net investment.

Explanation:

Arbitrage is simultaneously buying an asset ( may be currency, securities...) in a low-priced market and sell it in a high-priced market.

As a results, the investor earns profit from price differences in the two markets without risk and net investment. It is because the two trading happens at the same time once price differences in any two markets are recognized ( arbitrage opportunities recognized) and the proceed of selling the asset is immediately used for financing/returning to the buying of the asset.

Thus, (III) is the correct answer.

5 0
3 years ago
A machine purchased on 1/1/21 for $24,000 and on which $14,400 of Accumulated Depreciation has been recorded through 12/31/23 wa
Amanda [17]

Answer:

Gain on disposal = $7600

Explanation:

As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.

The formula for depreciation expense under straight line method is,

Depreciation expense per year = (Cost - Salvage value) / Estimated useful life

Depreciation expense per year = (24000 - 0) / 5

Depreciation expense per year =  $4800 per year

Depreciation expense for three months = 4800 * 3/12 = $1200

Accumulated depreciation 1 April 2024 = 14400 + 1200  =  $15600

To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.

NBV = Cost - Accumulated depreciation

NBV = 24000 - 15600

NBV = $8400

Gain on disposal = 16000 - 8400

Gain on disposal = $7600

6 0
3 years ago
An individual has $32,000 invested in a stock with a beta of 1.1 and another $48,000 invested in a stock with a beta of 1.3 If t
blagie [28]

Answer:

The beta of the portfolio is 1.22

Explanation:

In calculating the beta of the whole portfolio, we can calculate the weighted average beta of each stock .The sum of all weighted betas give the beta of the entire portfolio.

Beta of portfolio=amounted in first stock/entire amount invested*beta of the first+amount invested in second stock/entire amount invested *beta of the second stock

Beta of portfolio=($32000/($32000+$42000))*1.1+($48000/($32000+$48000))*1.3

Beta of portfolio=1.22

4 0
3 years ago
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