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
stira [4]
3 years ago
8

2) A firm sells two products. Product R sells for $20; its variable cost is $6. Product S sells for $50; its variable cost is $3

0. Product R accounts for 60 percent of the firm's sales, while S accounts for 40 percent. The firm's fixed costs are $4 million annually. Calculate the firm's break-even point in dollars.
Business
1 answer:
Tom [10]3 years ago
3 0

Answer:

$6896551.7

Explanation:

Given the following :

Product R:

Selling price = $20

Variable cost = $6

Product S:

Selling price = $50

Variable cost = $30

Firm's fixed cost = $4, 000,000

Break-even point dollars = (Fixed cost /Contribution margin ratio)

Contribution margin : selling price - variable cost

Product R: $(20 - 6) = $14

Contribution margin ratio = ($14/$20) * 60% = 0.42

Product S: $(50 - 30) = $20

Contribution margin ratio = ($20/$50) * 40% = 0.16

Sum of contribution margin ratio for both products = (0.42 + 0.16) = 0.58

Break-even point dollars = (Fixed cost /sum of Contribution margin ratio)

= $4,000,000/0.58

= $6896551.7

You might be interested in
Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of
RoseWind [281]

Answer:

B) related-linked diversification.

Explanation:

A related linked diversification strategy refers to expanding a company's product lines with products or services that are similar to the ones that it currently offers.

In this case, Amazon first sold books and selling a e-book reader follows a similar path. Since Amazon had spare cloud computing capacity, it decided to "lease it" to other businesses and is currently Amazon's star service that generates most of its cash.

6 0
3 years ago
In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract export
pogonyaev

Answer:

The correct answer is: add exports but subtract imports in calculating GDP.

Explanation:

National income refers to the production of goods and services by the residents of a nation within the geographical boundaries of a nation in a given period.

In the calculation of national income, net exports are included. This net export is the difference between exports and imports. In other words, we can say that exports are added and imports are included.

6 0
2 years ago
ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income D
miv72 [106K]

Answer: See explanation

Explanation:

The retained earnings will be calculated as:

= Begining retainers earnings + Net income - Dividend.

Year 1:

Retained earning = 0 + 2000 - 1700

= 300.

Year 2:

Retained earning = 300 + 2600 - 1600

= 1300

Year 3:

Retained earning = 1300 + 2600 - 2200

= 1700

Year 4:

Retained earning = 1700 + 5900 - 2900

= 4700

Year 5:

Retained earning = 4700 + 8800 - 3100

= 10400

3 0
3 years ago
Conduct your own social engineering experiments. 1) While at a restaurant, convenience store, bank, place of business, or any sh
alexandr1967 [171]

<u>Explanation:</u>

Note,  in the ICT field, the term social engineering refers to actions that involve the use of cunning to steal sensitive or unauthorized information from someone by means of social or human interactions with them.

For example, such information could be manipulatively gotten;

  • address,
  • age,
  • Social security number,
  • the number of children, etc.

5 0
2 years ago
Sophia is a postal carrier for the United States Postal Service. She frequently complains about all the inefficiencies and unfai
weeeeeb [17]

Answer: Alienated follower

Explanation:

Alienated followers are independent and critical thinkers who participate not to the beam or fullness of their capacity in a group. Sophia is discouged by the inactiveness of her boss concerning her complians and this makes her to complain to anyone who may be willing to speak to him, this makes her a alienated follower.

5 0
2 years ago
Other questions:
  • Determine the cost of goods sold expense assuming kramer had used the lifo method instead of the fifo method.
    13·1 answer
  • You purchased 3,000 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid a front-end load o
    12·1 answer
  • The _____ is used to measure price changes in commonly used goods and services, such as food and housing. real inflation, hyperi
    9·1 answer
  • In addition to Cash Flows from Operating Activities, the Statement of Cash Flows for a proprietary fund would include which of t
    14·1 answer
  • Company incurred the following costs while producing ​units: direct​ materials, per​ unit; direct​ labor, per​ unit; variable ma
    6·1 answer
  • Some say, "Pollution is the price of progress? 1. Who in fact pays the price? 2. Explain the moral and the economic issues raise
    14·1 answer
  • A "specific" factor of production is: A) critical to the production of the good or service B) not transferable to other types of
    7·1 answer
  • Inflation makes certain things less valuable in real terms, including: Group of answer choices your full college scholarship. re
    11·1 answer
  • Why feasibility analysis is important before starting a new business venture?state the role feasibility analysis with in entrepr
    12·1 answer
  • As a member of the media audience, what are some ways you can control the persuasive process? Explain who you think has more pow
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!