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aksik [14]
3 years ago
7

Boss Enterprises currently sells its products for per unit. Management is contemplating a ​% increase in the selling price for t

he next year. Variable costs are currently ​% of sales revenue and are not expected to change next year. Fixed expenses are per year. What is the breakeven point in units at the current selling​ price?
Business
1 answer:
devlian [24]3 years ago
5 0

Answer: 5,000 units

Explanation:

Break-even points in units is calculated by;

= Fixed Costs / Contribution Margin per unit

Contribution Margin

= Sales - Variable Costs

= $40 - ( 40 * 40%)

= 40 - 16

= $24 per unit

Breakeven point

= 120,000/24

= 5,000 units

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Substantiality.

Explanation:

Market segmentation is one of the important marketing strategies to divide the entire market into small segments in order to implement a better technique to satisfy the consumer need with specific products and schemes. There are four basic criteria for useful segmentation of the market:

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Substantiality: This criterion of segmentation express the notion that the target market must be large enough to be profitable as a small segment can not justify the investment.

Similarly in the given case, it talks about the substantiality criteria of segmentation as it says a selected segment must be large enough to warrant developing and maintaining a special marketing mix.

4 0
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Explanation:

An agent is referred to as someone who is given authority by the principal and acts in his or her behalf and the agent is also under the control of such person.

From the question, the principal is Bob while Betty is his agent. The relationship that exist in thus case is the perceived relationship which means that the third party that us, the tenants in thus case believe that an agent is authorised by the principal to do a particular work such as collection of rent in this case but in reality thus doesn't exist. They ate not meant to pay to the manager in this case but they acted based on their perception and since the principal didn't complain, they continued doing it.

7 0
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Jiminy's Cricket Farm issued a 30-year, 6.5 percent semiannual bond 9 years ago. The bond currently sells for 108.5 percent of i
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Answer:

1 151 million 2 97 million

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8 0
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Sam died with a gross estate equal to $3,000,000. In his will, Sam provided for the following outright transfers: $1,000,000 to
larisa [96]

Answer:

$0

Explanation:

In 2018, one individual could give up to $5.6 million in gifts before any estate or gift taxes were applied. This means that Sam would not have to pay a single penny to the government as long as his will does not exceed $5.6 million.

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Tai credit corp. wants to earn an effective annual return on its consumer loans of 14.1 percent per year. the bank uses daily co
yulyashka [42]
<span>Answer : 13.19 % Explanation: Convert the Effective Annual Return EAR to Annual Percentage rate as shown below: EAR = [1 + (APR / n )]^ n â’ 1 APR = n [(1 + EAR)^ 1/ n â’ 1 where n= number of days in a year. Let us take it as 365, since daily compounding given EAR =14.1% per year so 365 *(1.141)^(1/365) = 13.19%</span>
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