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fredd [130]
3 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]3 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]3 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

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Elena L [17]

Answer:

The correct answer is A and B

Explanation:

Law of increasing the opportunity cost is the principle or the concept which is defined as the company continue to increase the production of one good, the opportunity cost of producing the next unit will increase.

It is as to reallocate the resources in order to produce that one good which was better or best suited to produce the original good.

The law of opportunity cost occur when some of the resources are best suited for some tasks or products instead of others and it will lead to increase in production with increase in the opportunity cost too.

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If jorge produces 20 pounds of green beans, he can produce _______ pounds of corn
aniked [119]

If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

<h3 /><h3> Production Possibilities Schedule</h3>

Based on the  Production Possibilities Schedule table given pound of green beans is 20 while pounds of corn is 240.

Based on this if he produces 20 pounds of green beans he can as well produce 240 pounds of corn.

Jorge's Production Possibilities Schedule

Pounds of Green       Beans Pounds of Corn

20                                 240

Therefore If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

Learn more about  Production Possibilities Schedule here:brainly.com/question/26492942

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Answer:

Hi

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Explanation:

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if china’s economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if
grin007 [14]

Answer:

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