1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liraira [26]
3 years ago
11

Dream Threads Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $7000. The contribution margin

ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole unit.)
Business
1 answer:
mylen [45]3 years ago
8 0

Answer:

350 units

Explanation:

The break even point shows the earnings that the company has to generate to be able to cover all the expenses. The formula to calculate the break even point is:

Break even point= Fixed costs / contribution margin

Break even point= $7,000/0.50

Break even point= $14,000

Now, to determine the break even point in units you have to divide $14,000 by the sales price per unit:

$14,000/$40= 350 units

According to this, the break even point in units is 350.

You might be interested in
To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipmen
TiliK225 [7]

Answer:

B. primary activity

Explanation:

Based on the information provided within the question it can be said that in this scenario North Star is addressing a primary activity in the value chain analysis. This is because the five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. So in this scenario, North Star implementing new equipment into its production it is dealing with the operations factor of the primary activities.

8 0
3 years ago
A 4-year project has an annual operating cash flow of $42,000. At the beginning of the project, $6,000 in net working capital wa
OLEGan [10]

Answer:

Total cash flow $54,613

Explanation:

The computation of the year 4 cash flow is given below:

Selling price of equipment $6,920

Book value at year 4 end $5,460

Capital gain $1,460

Tax on capital gain at 21% $306.6

So,  net cash flow from the sale of equipment  

= $6,920 - $307

= $6,613

Now year 4 cash flow is  

Annual operating cash flow $42,000

Release of working capital  $6,000

Net cash flow form sale of equipment $6,613  

Total cash flow $54,613

3 0
3 years ago
Payday loans could be considered
Molodets [167]
C. subprime lending

Its not something you want to do all of the time
7 0
3 years ago
What do you mean by Producer's Equilibrium ?????​
Alika [10]

Answer:

it is refered to as profit maximization condition

6 0
3 years ago
Read 2 more answers
According to the rational rule for sellers, this company should produce ____ of output and charge a price of _____.
hoa [83]

Answer: two units; $450

Explanation:

7 0
2 years ago
Other questions:
  • Ashley is single and lives with Barney, her boyfriend, and Candy, his 8 year old daughter. Ashley paid all of the support for he
    11·1 answer
  • Justify the following statement: "Diversity should exist in the workplace."
    11·2 answers
  • The section of the continuity plan that provides instructions for all personnel is the:
    10·1 answer
  • In some cases, researchers are interested in very large groups such as all the inmates of the u.s. prison system. in this case,
    13·2 answers
  • In general, consolidated financial statements should be prepared a.when a corporation owns more than 50% of the common stock of
    6·1 answer
  • Australia is a major producer of agricultural and dairy products and exports coffee, tea, spices, and milk products to the Unite
    8·1 answer
  • According to our Lecture, which of the following strategic concepts allow firms to achieve their missions?A) productivity, effic
    12·1 answer
  • The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investm
    8·1 answer
  • A value proposition represents the value that _____
    13·1 answer
  • How long do you have to be employed to buy a house.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!