Which of the following is a true statement?

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cat. Labor costs will

liberstina [14]

Question Completion:

Assume the following:

Selling price per unit = $54

Current total variable cost = $24.50

Total Fixed Costs = $69,000

Answer:

Chester

To break-even on product Cat, Chester needs to sell 2,379 units instead of 2,339 units.

Explanation:

a) Calculations:

New variable cost will increase by ($3.40 - $2.90)/2 = $0.25

New variable costs will be = $24.75 ($24.50 + $0.25)

Contribution margin per unit = $29.25 ($54 - $24.75)

New fixed costs = $69,000 + ($0.25 * 2,339) = $69,585

Old break-even units = $69,000/$29.50 = 2,339 units

New break-even units = Fixed cost/contribution margin per unit

= $69,585/$29.25

= 2,379 units

b) Chester's break-even point in units is calculated by using the break-even formula: Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or $69,585/$29.25. The variable cost per unit includes only the cost that will be passed to customers. This means that half of the labor cost is regarded as variable, while the other half is taken is fixed cost.

3 0

3 years ago

What is a contingency plan?

fenix001 [56]

Answer:

Um plano de contingência é um tipo de plano preventivo, preditivo e reactivo.

Apresenta uma estrutura estratégica e operativa que ajudeá a controlar uma situação de emergência e a minimizar as suas consequências negativas.

O plano de contingência propõe uma série de procedimentos alternativos ao funcionamento normal de uma organização, sempre que alguma das suas funções usuais se vê prejudicada por uma contingência interna ou externa.

5 0

3 years ago

You run a hospital with 100 rooms. Fixed daily cost is $876.00 which includes staff salary, property charges, maintenance etc. V

maw [93]

Answer:

profit = $1,236

Explanation:

fixed daily costs $876

variable cost per room $13

revenue per room $79

contribution margin per room = $79 - $13 = $66

32 rooms were sold today = $66 x 32 = $2,112

- fixed costs = ($876)

daily profit = $1,236

The contribution margin per unit is the difference between the additional revenue obtained from selling one more unit minus the additional costs of selling that unit.

5 0

3 years ago

The two most common types of accounts to manage your money are _________ and __________.

scZoUnD [109]

Answer:

C

Explanation:

Checking and savings

6 0

3 years ago

A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour

SIZIF [17.4K]

Answer: $Value added by farmer = $1 Value added by miller = $2 Value added by the baker = $3$

GDP contribution is $6.

Explanation: GDP refers to the market value of final goods and services produced withing the national territory of a country.

Using the value added method, we can calculate GDP by summing up the value added at each level of production.

$Value added by farmer = $1 Value added by miller = $3 -$1 = $2 Value added by the baker = $6 - $3 = $3$

$GDP = Value added by the farmer +Value added by the miller + Value added by the baker = $1 + $2 +$3 =$6$

Or

Using the expenditure approach, GDP is the market value of the final good sold to the customer.

GDP = Cost of bread to the engineer = $6

6 0

3 years ago