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sweet [91]
3 years ago
6

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year a

t a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?
Business
1 answer:
kogti [31]3 years ago
5 0

Answer:

The most the firm can spend to lease the new equipment without losing money=$75,000

Explanation:

The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;

R=C

where;

R=revenue from sales

C=cost

And;

R=P×N

where;

R=revenue from sales

P=price per unit

N=number of units

In our case;

P=$7.5 per unit

N=10,000 units

replacing;

R=7.5×10,000=$75,000

Total revenue from sales=$75,000

C=p×n

where;

p=cost per unit

n=number of units

In our case;

p=$5

n=unknown

replacing;

C=5×n=5 n

At break-even point, R=C;

5 n=75,000

n=75,000/5=15,000

The break-even cost=5×15,000=$75,000

The most the firm can spend to lease the new equipment without losing money=$75,000

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Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

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Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

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New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

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Pro forma financial statements are the most comprehensive means of financial forecasting. projections of financial statements fo
nadezda [96]

Answer:

The correct answer is All of the options are true.

Explanation:

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A publisher for a promising new novel figures fixed costs​ (overhead, advances,​ promotion, copy​ editing, typesetting, and so​
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Answer:

5,409 books

Explanation:

to calculate break even point in units we can use the following formula:

break even point in units = total fixed costs / contribution margin per unit

  • total fixed costs = $53,000
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break even point in units = $53,000 / $9,80 = 5,408.16 ≈ 5,409 books

in $, that would equal = 5,409 books x $12 per book = $64,908

5 0
3 years ago
Read 2 more answers
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