40,000 units and $400,000 are the break-even point in units and dollars respectively.
<u>For units:</u>
$200,000/5 = 40,000
<u>For dollars:</u>
40,000 x $10 = $400,000
<h3><u>What is a </u><u>
break-even point </u><u>?</u></h3>
The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in manufacturing when the income from a product matches the cost of manufacture.
This is a crucial calculation to include in your business strategy for every new venture. Potential investors want to know when they may anticipate a return on their investment as well as the rate at which it will occur. This is due to the fact that some businesses may take years before becoming profitable, frequently losing money in the initial months or years before achieving break-even. Break-even point is crucial in every company plan given to a potential investor because of this.
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Yes it can be !!!! Because of
Answer:
b. 11.87%
Explanation:
interest = $102,000*11%*8/12
= $7480
Effective interest rate = ($7480/($102000 - $7480))*12/8
= ($7480/94520)*12/8
= 11.87%
Answer:
a loss = $1,500
Explanation:
Bacon Company paid $12,700 in cash and an old machinery with a $4,000 basis for this new equipment that had a price of $15,200.
Bacon's loss = (cash paid + old machinery basis) - purchase price
Bacon's loss = ($12,700 + $4,000) - $15,200 = $16,700 - $15,200 = $1,500
Answer: A. $13000
During its first five years of operation, Mookie Consulting Services reported the following annual net income and dividend amounts:
Year Net Income Dividends
1 $22,000 $2,000
2 17,000 2,000
3 9,000 1,000
4 14,000 3,000
5 25,000 4,000
If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of
Year 1?
a. $13,000 d. $41,000
b. $23,000 e. some other amount
c. $37,000
Explanation: the difference between total dividends (75,000$) and total net Income (88000$) gives the Retained Earnings = $13000
