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
fredd [130]
2 years ago
12

A producer with only one product has total fixed costs of $15,000 per month. In addition, it cost the producer $100 in variable

costs to produce each unit of his product (raw materials and direct labor cost). The producer charges his wholesalers $125 per unit. What is the sales amount to break even
Business
2 answers:
Hunter-Best [27]2 years ago
6 0

Answer:

The options are given below:

A. 600 units

B. 450 units

C. 550 units

D. 650 units

E. 500 units

The correct option is A.

Explanation:

The breakeven point refers to the level of production at which the costs of production will be equal to the revenues for a product.

In the question above, we are given:

Fixed costs = $15,000

Variable costs = $100 per unit

Price of one unit after production = $125

The formula for calculating the breakeven is given as:

Breakeven = \frac{fixed costs}{revenue per unit - variable costs per unit}

we have:

Breakeven = \frac{15,000}{125 - 100}

Breakeven = \frac{15,000}{25}

Breakeven = 600 units.

Aleks [24]2 years ago
3 0

Answer:

$75,000

Explanation:

The BEP which is the break even point is the point where the company's sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

Let the number of units that must be sold to break even be y

125y - 100y - 15,000 = 0

25y = 15,000

y = 15000/25

y = 600

The sales amount to breakeven

= 600 * $125

= $75,000

You might be interested in
XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in len
prisoha [69]

Answer:

B. Escalator Clause

Explanation:

An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation.

4 0
2 years ago
Suppose that consumers become more pessimistic about the future and, as a result, reduce their consumption by $10 billion. If th
iragen [17]

Answer:

Real GDP will decrease by $50 billion.

Explanation:

In order to calculate the net effect of a reduction in consumption of $10 billion, we need to identify the multiplier first.

Multiplier = 1 / marginal propensity to save

Marginal propensity = 1 - marginal propensity to consume = 1-0.8 = 0.2

Multiplier = 1 /0.2 = 5

The net change then of a reduction by 10 billion = 10 * 5 = $50 billion

Hope that helps.

4 0
3 years ago
__________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the
expeople1 [14]
<span>Logistics is the set of means necessary for the organization of a company, especially in the distribution. It is focused on the supply chain, the planning of purchasing activities, production, transportation, and distribution. Its fundamental function is to place the products in the right place, under the desired conditions and standards, for the maximum satisfaction of the company.</span>
7 0
3 years ago
A Qdoba and a Baja Fresh both close down. They were both very near by a Chipotle. Now that Qdoba and Baja Fresh are gone, what d
Kitty [74]

Answer:

They were not allowed in advance of this investigation

7 0
3 years ago
When the price level rises, the number of dollars needed to buy a representative basket of goods: A. increases, and so the value
muminat

Answer: B. increases, and so the value of money falls.

Explanation: When the price level rises, the number of dollars needed to buy a representative basket of goods<u><em> increases, and so the value of money falls</em></u>. A representative basket of goods refers to a fixed number of consumer goods and services. The price of these goods and services are valued annually. If one or more of these products increase their value you will need more dollars to buy the basket of goods. So, the value of money falls.

7 0
3 years ago
Other questions:
  • On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eig
    9·1 answer
  • Adam Smith used the “invisible hand” as a metaphor for the forces that balance a free market. What might be a good metaphor for
    7·1 answer
  • In a fixed exchange rate​ system, how do countries address the problem of currency market pressures that threaten to lower or ra
    11·1 answer
  • For each of the following pairs of firms, explain which firm would be more likely to engage in advertising.
    6·1 answer
  • According to the Marketing Concept, a. Companies produce only what customers want. b. A company should produce only basic produc
    9·1 answer
  • Which of the following are advantages of working for a for-profit healthcare facility? Check all of the boxes that apply.
    13·1 answer
  • According to a proper production function, if adding one unit of capital increases output by 10 units, adding an another unit of
    8·1 answer
  • Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable
    7·1 answer
  • Cecilia has studied economics and knows about the value and investment potential of diamonds. the price of diamonds has recently
    14·3 answers
  • When inserting a nasopharyngeal airway into a semiconscious patient, the nurse encounters resistance. which action is most appro
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!