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lisov135 [29]
3 years ago
8

A restaurant is considering adding fresh brook trout to itsmenu. Customers would have the choice of catching theirown trout from

a simulated mountain stream or simply ask-ing the waiter to net the trout for them. Operating thestream would require $11,925 in fixed costs per year.Variable costs are estimated to be $6.80 per trout. The firmwants to break even if 900 trout dinners are sold per year.
What should be the price of the new item?
Business
1 answer:
NikAS [45]3 years ago
7 0

Answer:

Selling price = $20.05

Explanation:

<em>The break even point </em><em>is the level of activity where the total cost of is exactly equal to the total revenue. At this point, the business makes no profit and no loss, because the total contribution is also equal to the total fixed costs.</em>

Contribution is the excess of sales revenue over variable cost

Total contribution = (S.p - VC per unit) × unit sold

So we can determine the selling price per unit by equating the total contribution to the the total fixed cost as follows:

Step 1

<em>Determine the total contribution</em>

= ( S.P - 6.80) × 900

Step 2

<em>Equate the total contribution to the total fixed cost and solve for S.P</em>

(S.P - 6.80) × 900 = 11,925.    Lets substitute S.P with x

(X-6.80) ×  900 = 11,925

900X -6,120 = 11,925

900X =  11,925 + 6,120

900X = 18045

X = 18,045/900

X = $20.05

Selling price = $20.05

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Demand for home computers has increased yet the price has fallen.Explain this
dexar [7]

Answer:

cost of manufacturing

Explanation:

In the old days the price to make computers was very high so to make profit computers used to be even more expensive. But as time went on people learned to use less expensive materials to make computers and competition against other companies made them lower the prices. Due to that the demand for computers has risen.

4 0
4 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $59.37. Production costs are $37.59 variable and $9.54 fixed. Beca
Andreas93 [3]

Answer:

Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.

Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.

Explanation:

Provided, current profit per unit = Selling price - Total cost =  $59.37 - $37.59 - $9.54 = $12.24

This is calculated to know the current profit per unit, without furnishing the bookcase.

In case, the bookcase is furnished then the cost will increase by $5.64 per unit.

That is total cost per unit = $37.59 + $9.54 + $5.64 = $52.77

Revised selling price = $70.62 for each finished unit

Therefore profit pr unit on finished bookcase = $70.62 - $52.77 = $17.85

Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.

Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.

4 0
4 years ago
Suppose the economy initially produces 15 million pounds of food and 400,000 tons of coal, which is represented by point
sweet [91]

<em>I believe the answer to your question is A. The opportunity cost of producing an additional 5 million pounds of food.</em>

8 0
3 years ago
Glendale Paving currently has 120,000 shares of stock outstanding that sell for $54 per share. Assume no market imperfections or
emmasim [6.3K]

Answer:

The new price will be $38.57.

Explanation:

The initial price of 120,000 outstanding shares is $54.

There are no market imperfections or taxes.

The firm declares a dividend of 40%.

The new share price will be

= Initial\ price\times(\frac{1}{1+ dividend} )

= 54\times(\frac{1}{1+0.4} )

= 54\times\frac{1}{1.4}

= 54\times0.71

= $38.57

5 0
3 years ago
Will give brainliest
bazaltina [42]

Answer:

B

Explanation:

hope i helped if im wrong sorry;-;

6 0
3 years ago
Read 2 more answers
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