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
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

You might be interested in
In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, m
Airida [17]

Answer:

sharing information across the organization.

Explanation:

ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.

Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.

6 0
3 years ago
Jung believed that dreams and "visions"
tatiyna

Answer:

The Correct Option is C.

Explanation:

Vision is which a person see something either having a heavenly perspective or in the person or individual mind. Whereas the dream is what the person or individual see when the person or individual is asleep.

So, Jung believed that the dreams and the vision is important or vital form of communications from another domain.

6 0
3 years ago
Rachel pushed very hard to go with Project A rather than Project B. There have been several cost overruns, the project is two we
igomit [66]

Answer:

a. escalation of commitment

Explanation:

  • Growth of commitment is a kind of behavioral model of human beings in which people make decisions about different types of negative outcomes or different types of investments from their actions.
  • It basically happens in our daily lives in business and it is a risk factor for the company because it provides less satisfaction.
  • Rachel is primarily engaged in an increase in commitment because Rachel faces a wide variety of problems in the bubble project compared to the Wave project and this increases the overall funding of the product.
4 0
3 years ago
Short Company purchased land by paying $22,000 cash on the purchase date and agreed to pay $22,000 for each of the next seven ye
muminat

Answer:

The liability reported is closest to $107,105.21.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or the the liability reported  =?

P = Annuity payment = $22,000

r = Student's desired return rate = 10%, or 0.10

n = number of years = 7

Substitute the values into equation (1) to have:

PV = $22,000 * ((1 - (1 / (1 + 0.10))^7) / 0.10)

PV = $22,000 * 4.86841881769293

PV = $107,105.21

Therefore, the liability reported is closest to $107,105.21.

4 0
2 years ago
Firms usually implement ________ when they have a particular profit goal as their overriding concern.
Step2247 [10]

Answer:

target profit pricing

Explanation:

Based on the information provided within the question it can be said that the firms in this situation usually implement target profit pricing. This term refers to a method of determining how many units of a product need to be sold in order to cover the costs of production as well as achieve a set profit margin. This is usually a goal/target that is set and hoped to be achieved by the end of the year.

7 0
3 years ago
Other questions:
  • An economy is experiencing a high rate of inflation. The government wants to reduceconsumption by $36 billion to reduce inflatio
    7·1 answer
  • Challenges of self-employment.Explain in paragraph.
    12·1 answer
  • To get a complete picture of your target market, you must do Question 2 options: door-to-door surveys. primary research. seconda
    5·2 answers
  • In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $350,000 cost of equipment
    12·1 answer
  • Co. is considering acquiring a manufacturing plant. The purchase price is $ 1 comma 100 comma 000. The owners believe the plant
    15·1 answer
  • The economic problem of _____ arises because human wants and desires are unlimited and the means to satisfy these wants are limi
    6·1 answer
  • Which workers are required to handle money as part of their job qualifications?
    10·2 answers
  • What is meant by assessment? Activities that occur between two or more businesses. Provides services for connecting network reso
    7·1 answer
  • hen a store has a sale, it cuts the prices on the goods it sells. Is that more likely to happen when there is a surplus orwhen t
    12·1 answer
  • I'll give brainliest!!! Which descriptions offer examples of Governance workers? Check all that apply.
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!