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Reika [66]
3 years ago
11

Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per y

ear, and the company must sell 5,000 units to break even.
If the company has a target profit of $67,500, sales in units must be:


Multiple Choice


a.6,000 units


b.5,750 units


c.7,925 units


d.6,500 units
Business
1 answer:
exis [7]3 years ago
6 0

Answer:

d)= 6,500

Explanation:

The break-even point (BEP) is the units of  the product that Ferkil Corporation must sell for it to make no profit or loss.

This units can be determined as follows:

BEP = Total fixed cost + target profit/ selling price - variable cost

So we substitute the variables given into the formula

5000 = 225,000 /(100-X)

5000×(100-X) =225,000

500,000 -5000x = 225,000

(500,000 -225,000)/5000 = x

X= 55

variable cost per unit = $55

Units to sell to achieve a profit 67,500

= (225,000  + 67,500)/(100-55)

= 6,500

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Explanation:

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Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G
Sedaia [141]

Answer:

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Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.

Explanation:

3 0
2 years ago
which retail executive supervises a group of buyers and is responsible for the merchandising activities of a related group of sa
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Also known as retail business, retail acts as a marketing intermediary that connects major producers or large wholesalers with consumers who buy in small quantities or in units. After purchasing a number of goods from a larger group of businesses, the retailer or retailer will resell the goods by setting a certain additional price to make a profit.

You can learn more about Retail here brainly.com/question/28066195

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7 0
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Which of the following is an arbitrage opportunity?
FromTheMoon [43]

Answer:

D. The bank offers you a loan at 4% interest and a savings account that pays 5% interest.

Explanation:

<em>Arbitration</em> is a <em>financial strategy</em> that consists of the price difference between different markets on the same financial asset to obtain an economic benefit, usually without risk.

To perform arbitration, complementary operations (buy and sell) are carried out at the same time and wait for prices to adjust. The arbitration takes advantage of this divergence and obtains a risk-free gain. In other words, the arbitrajista is positioned short (sells) in the market with higher price and long (purchase) in the market with lower price. The benefit would come from the difference between the two markets.

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