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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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The table below describes the total and marginal benefit elvis gets from fried peanut butter and banana sandwiches. elvis' fried
ycow [4]
I looked up the question, since this one is incomplete. I've attached an image of the correct chart. Elvis' marginal benefit of the fourth sandwich is his total benefit of eating 4 sandwich minus his total benefit from eating 3 sandwiches.

Looking at the chart, we see that this gives us 81-75 = 6. 

Therefore, the Marginal Benefit of a fourth sandwich is 6. 

6 0
3 years ago
Based on the corporate valuation model, gray entertainment's total corporate value is $1,150 million. the company's balance shee
vagabundo [1.1K]

Answer:

$26.67 million

Explanation:

The computation of price per share is shown below:-

Total market value = $1,150 million + $120 million

= $1,270 million

Market value of equity = Total market value - value of debt - value of preferred stock

= $1,270 million - ($120 million + $300 million + $50 million)

=  $1,270 million - $470 million

= $800 million

Price per share = Market value of equity ÷ Stock outstanding

= $800 million ÷ $30 million

= $26.67 million

5 0
3 years ago
On December 31, 2019, the unadjusted credit balance of the Allowance for Overvaluation of Inventories: Hope Branch ledger accoun
Zigmanuir [339]

Answer:

                                Journal entries

Date           Particulars                                    Debit         Credit

31, Dec 19  Investment in Branch Office     $132,000

                         To Inventories                                         $110,000

                         To Allowance for Overvaluation of        $20,000

                         Inventories

31, Dec 19    Profit and loss                          $18,400

                           To Investment in Branch Office            $18,400

31, Dec 19     Allowance for Overvaluation   $10,000

                     of Inventories

                           To Realized Gross Profit: Branch Sales  $10,000

Workings

1. Unrealized Inter-company Inventory Profit = (132,000/120) * 20 = $22,000

Shipment to Branch = 132,000 - 22,000 = $110,000

2. Unrealized Inter-company Inventory Profit = (60,000/120) * 2 = $10,000

5 0
2 years ago
ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerla
igomit [66]

Answer:

Would not exercise its currency option

Explanation:

Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.

A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.

5 0
2 years ago
Read 2 more answers
Based on the given information, what will be the working capital of the company?
Romashka-Z-Leto [24]

Answer:

$37,000

Explanation:

Working capital indicates the difference between a company's current assets and its current liabilities.

Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.

in this case,

Current assets include

Inventory    $50,000

Cash at Bank    $ 5,000

prepaid rent    <u>  $5,000</u>

Total current assets <u>$60,000</u>

current liabilities

Notes Payable   $20,000

tax payable       <u>   $3,000</u>

Total current liabilities  <u>   $23,000</u>

Working capital

= $60,000 - $23,000

= $37,000

7 0
2 years ago
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