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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

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aleksandrvk [35]

Answer:

Benefit

Explanation:

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The person could segment the market grounded on the performance, quality, special features, customer service and other advantages.

Therefore, the fact that the some of the customers want the flavored water bottles and others want to have it with the added minerals, it provides an opportunity for the benefit segmentation.

3 0
4 years ago
Your phone service provider offers a plan that is classified as a mixed cost. The cost per month is $50 flat rate for the first
fomenos

Answer:

$120

Explanation:

The computation of the cost is shown below:

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where,

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And, the extra cost is

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So, the total cost is

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The 200 minutes is come from

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4 0
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RSB [31]
 probably New York i think so

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An example of the ___________ effect is when BMW gained in-depth information about visitors to a popular Chinese social media si
Bezzdna [24]

Answer:

information effect.

Explanation:

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5 0
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