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]
4 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]4 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
At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000
Dima020 [189]

Answer:

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

Explanation:

Giving the following information:

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,220,000/1,020,000

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

5 0
3 years ago
An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the r
scZoUnD [109]

Answer:

d. leverage

Explanation:

Leverage -

It is a type of investment strategy , where the borrowed money is used .

It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage  .

Hence , from the given scenario of the question,

The person uses borrowed money to increase the potential return of an investment .

Hence , from the question,

The correct term is leverage .

3 0
3 years ago
According to the path-goal theory, directive leadership will lead to higher employee satisfaction when there is ________ within
lakkis [162]

Answer:

The correct answer here would be Cohesiveness.

Explanation:

Path goal theory is a type of motivational theory, which tells about how leaders can motivate their subordinates in accomplishing the designated goals.  Here directive leadership will help in increasing employees satisfaction when there is cohesiveness with in a work group. Cohesion in the group means that people in the group are working in unity and works towards achieving the goals and also satisfying emotional needs of group members.

8 0
3 years ago
The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: ($ in millions) Co
Yuri [45]

Answer: The answer is c $1,080 $560

Explanation:

The journal entry will be

Dr: common stock $200 million

Dr: paid in capital $180 million

In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.

Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560

6 0
4 years ago
Read 2 more answers
ASAP!!! PLEASEEEEE Using online tools research and write how the Internet is advantageous as a business tool for marketing produ
otez555 [7]
The internet provides a place for people to advertise easily. You could buy add spaces on websites to advertise the product you are selling.
(Not sure how long it needs to be but this is a rough idea)
6 0
3 years ago
Other questions:
  • Ray Steen recently started a business. During the first few days of operation, Mr. Steen transferred $100,000 from his personal
    13·1 answer
  • what is one way we could pay for things like roads, schools, or the sewer system without taxing the public?
    6·1 answer
  • In response to threats from such companies as Amazon, established manufacturers and retailers became "brick-and-click" oriented
    12·1 answer
  • Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as​ follows:Direct materi
    5·1 answer
  • The balance sheet value of a firm's inventory is $60,000. Suppose that the firm purchases supplies at a cost of $3,500 and adds
    15·1 answer
  • Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
    12·1 answer
  • We read about making business level strategies and corporate level strategies in pursuit of our vision or mission. In that, comp
    13·1 answer
  • If the $65 application fee poses a financial hardship, we are happy to waive it for you. Williams actively seeks the most except
    7·1 answer
  • Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
    12·1 answer
  • When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at ev
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!