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xeze [42]
3 years ago
13

Variable costs of production $50 per unit Variable costs of sales and administration $25 per unit Fixed costs of production $100

,000 per year Fixed costs of sales and administration $50,000 per year Assuming that the product is sold for $100 per unit, how many units must be produced and sold if the operating income is to be $25,000?
Business
1 answer:
malfutka [58]3 years ago
7 0

Answer:

Number of units to be produced and sold= 7,000 units

Explanation:

Giving the following information:

Variable costs of production $50 per unit

Variable costs of sales and administration $25 per unit

Fixed costs of production $100,000 per year

Fixed costs of sales and administration $50,000 per year

Selling price= $100 per unit

Desired profit= $25,000

To calculate the number of units to be produced and sold, we need to use the break-even point formula:

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

Fixed costs= (100,000 + 50,000)= 150,000

Unitary variable cost= (50 + 25)= $75

Break-even point in units= (150,000 + 25,000) / (100 - 75)

Break-even point in units= 7,000 units

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Nadusha1986 [10]

Answer:

The correct answer is letter "A": Penetration.

Explanation:

Penetration Pricing means that an initially low price for a new product or service attracts customers away from the competitors. The new company hopes that even if prices rise to normal levels, customers will continue to use their products. Penetration Pricing will yield higher returns on sales and push rivals out of the market if implemented long enough.

3 0
3 years ago
A country implements policies that are expected to increase taxes by €100 million, increase government spending by €50 million,
Bezzdna [24]

Answer:

A) Increase by 50 million

Explanation:

A is correct.

Below is the current account balance calculation

CA = Sp -I + (T-G- R)

CA stands for Current account balance

Sp stands for Private sector savings

I is Investments, T = Taxes

G represents government spending's, whereas R = Transfers

CA = -25-(-25) + ( 100-50-0 ) = 50, increase by 50 million euro

5 0
3 years ago
The following information is available for the pension plan of Concord Company for the year 2020.
anzhelika [568]

Answer:

$93,900

Explanation:

Computation for pension expense for the year 2020.

PENSION EXPENSE

Service cost $54,700

Interest cost $45,200

($452,000 * 0.10)

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Amortization of PSC $7,800

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4 0
3 years ago
g Curtis invests $425,000 in a city of Athens bond that pays 6.25 percent interest. Alternatively, Curtis could have invested th
Advocard [28]

Answer:

The explicit tax would Curtis incur on interest earned on the Initech, Inc. bond is $7,395

Explanation:

The computation of the explicit tax is shown below:

= (Invested amount × interest rate with similar risk) × marginal tax rate

= ($425,000 × 7.25%) × 24%

= $30,812.50 × 24%

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3 years ago
Owner has a place on his land where he piles trash. The pile has been there for three months. John, a neighbor of Owner, without
exis [7]

Answer:Tort of trespass

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Tort of trespass is a civil wrong commited by a person through his interference or unapproved use or entry into another person's space.

JOHN COMMITTED A TORT OF TRESPASS AS HE PENETRATED THE LAND OF HIS NEIGHBOR AND DROPPED TRASH WITHOUT THE CONSENT OF THE NEIGHBOR WHO OWNS THE PROPERTY.

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