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natali 33 [55]
3 years ago
14

Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this prod

uct to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be:
Business
2 answers:
ELEN [110]3 years ago
7 0

Answer:

Break-even point=5,000 units

Explanation:

Giving the following information:

The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package.

To calculate the break-even point, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 20,000/ (6 - 2)

Break-even point=5,000 units

Greeley [361]3 years ago
5 0

Answer:

The breakeven point is 5000 units

Explanation:

The breakeven point in units can be calculated by using the following formula:

Breakeven Sales In Dollars = Fixed Cost / Contribution per unit

The fixed cost here is $20,000 and the contribution per unit is $4 ($6-$2).

So by putting the values, we have:

Breakeven Sales In Dollars = $20,000 / $4 per unit = 5000 Units

So the sales required to breakeven at a contribution per unit of $4 is 5000 units.

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___________________ are cost that make customers reluctant to switch to another product or servicce.
pashok25 [27]

Answer:

Switching cost

Explanation:

Switching cost may be defined as the amount which is related to the consumer for the purpose of changing the supplier to the another one. So, the greater the cost of switching, the more will be hard or costly the switch will be.

Therefore according to the above explanation, the correct answer is Switching cost.

3 0
3 years ago
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5 0
3 years ago
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A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $
bulgar [2K]

Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.

The formula to compute the depreciation under straight lie method is shown below:

= \dfrac{(original\ cost - salvage\ value)}{useful\ life}

= = \dfrac{(\$100,000 - \$15,000)}{10}

= $8,500

The depreciation amount under straight line method should remain same over the estimated useful life

So, the second year’s depreciation for this equipment is $8,500

6 0
3 years ago
How would a computer enhance the productivity of a business
Bas_tet [7]
A computer would enhance the productivity of a business because it would produce better communication and would also help things be accomplished faster. hope that helps if not lmk

7 0
3 years ago
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Jamal has owned his home for about 5 years. his refrigerator needs to be replaced and jamal is thinking about buying an energy s
ipn [44]

Answer - A (7 years)


WORKINGS

To calculate how long it would take for the new refrigerator to pay for itself in lower utility costs, the cost of new refrigerator will be divided by lower utility cost per year

 

Cost of new refrigerator = $598

 

TO CALCULATE LOWER UTILITY COST PER YEAR

At a cost of only 12 cents per day

Annual cost will be 12 X 365 = 4380 Cents ($43.8)

 

Cost saved annually = Cost of old refrigerator – Cost of new refrigerator.

Lower utility cost per year = $132 – $43.8

Lower utility cost per year = $88.2

 

How long would it take for the new refrigerator to pay for itself in lower utility costs?

$598 ÷ $88.2

= 6.78 years

Approximately 7 years

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3 years ago
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