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NikAS [45]
3 years ago
7

Mix Sweet Shop bakes and sells pies. Mix has annual fixed costs of​ $880,000 and a variable cost per pie of​ $7.50. Each pie sel

ls for​ $15.50 each. The firm expects to sell​ 500,000 pies annually. What is the break−even point in sales​ dollars?Select one:
a. 190,440
b. 110,000
c. 200,000
d. 280,000
Business
1 answer:
kolezko [41]3 years ago
3 0

Answer:

Break-even point in units= 110,000

Break-even point in dollars= $1,705,00

Explanation:

Giving the following information:

Mix has annual fixed costs of​ $880,000 and a variable cost per pie of​ $7.50. Each pie sells for​ $15.50 each. The firm expects to sell​ 500,000 pies annually.

We need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 880,000/ [(15.5 - 7.5)/15.5]= $1,705,000

Break-even point (units)= fixed costs/ contribution margin

Break-even point= 880,000/ (15.5 - 7.5)= 110,000 units

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Answer:

1 company to be in different is  15000 units

2 cost =  approximate  $300000

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4  cost is less for phoenix and  Phoenix is the ideal location

5 Cost advantage = $18,000 so closed to $20000

Explanation:

given data

Atlanta fixed costs (annual) = 80000

variable costs (per unit) = 20

Phoenix  fixed costs = 140000

variable costs = 16

solution

we consider here output level = x

and price will be = p

so here profit for location will be

profit = Revenue - Variable Cost - Fixed costs   .............1

so here Atlanta profit is  

Profit = px - 20x - 80000     ..................2

and Phoenix profit is  

Profit = px - 16.1x - 140,000      ...................3

so now company to be in different is  

px - 20x - 80000 = px - 16.1x - 140,000

solve we get x here

x =  15,384.62  = 15000 units

and  

and now annual costs for phoenix will be as

annual cost =  Variable cost + Fixed     ...........4

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and

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and

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so  

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Cost for Phoenix = $462,000

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and

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Cost advantage  = $480,000 - 462,000

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Answer:

current intrinsic value per stock = $26.35

Explanation:

year                      dividend              EPS

0                              0                       $18

1                               0                       $20.88

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Answer:

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