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
Nova Electrics anticipates cash flow from operating activities of $12 million in 20X1. It will need to spend $9.5 million on cap
Ulleksa [173]

Answer:

$1.78 million

Explanation:

Firm’s projected free cash flow for the year 20X1:

= cash flow from operating activities - capital investment - Common stock dividend - preferred stock dividend

= $12 million - $9.5 million - $0.40 million - $0.32 million

= $1.78 million

Therefore, the firm’s projected free cash flow for the year 20X1 is $1.78 million.

6 0
2 years ago
In 2008, Jiffy Lube began a marketing campaign which encouraged women to focus on their cardiovascular health. Jiffy Lube's "Mai
grandymaker [24]

<u>Answer:</u>Cause marketing

<u>Explanation:</u>

Cause marketing is the strategy where the motive is to increase the profits of the organisation as well as have concern for the society. Jiffy Lube marketing campaign includes a social cause of maintaining the cardiovascular health and also through this campaign they are trying to raise $1 million which is monetary based.

So cause marketing is for both creating awareness about the cause and also to raise funds to support the campaign. The brand's message is also given as well as the profits are also made through this campaign.

8 0
3 years ago
Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,
Vesna [10]

Answer:

D. $33.47

Explanation:

The computation of overhead cost per skateboard using an activity-based costing system is shown below:-

                                    Total          Expected           Activity

Activity pool cost      Overheads    Activity               Rate

Setup cost                     $6,550           665                9.85

Engineering cost          $16,000        1,120                14.29

maintenance cost        $91,450        4,353               21.01

Activity pool cost          Rate             Driver         Overhead cost  

Setup cost                       9.85              320              3,152  

Engineering cost             14.29             630             9,002.7

maintenance cost            21.01              2,178           45,759.78  

Total Overheads cost                                               57,914.48

Number of units                                                               1,730

Overhead cost per unit                                                $33.48

Therefore for computing the overhead cost per unit we simply divide the total overhead cost by number of units.

8 0
2 years ago
Which type of promotion do many people consider more credible because it is less biased
tekilochka [14]

Publicity is more credible because it is less biased :)

4 0
3 years ago
Read 2 more answers
A dividend preference for preferred stock means that:_________A. Dividends must be declared on preferred stock. B. Preferred sha
Airida [17]

Answer:

D. Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders.

Explanation:

Before declaring dividend on common shares, it is always necessary for the company to pay dividends on preferred shares and dividends are declared when there are sufficient profits.

4 0
3 years ago
Other questions:
  • Tayler Company reported the following data.
    10·1 answer
  • Suppose that demand for automobiles increases by 25% when consumers' incomes increase by 20%. what is the income elasticity of d
    9·1 answer
  • Describe the personal assets that are protected under Chapter 13. Describe the basic eligibility requirements for filing under C
    7·1 answer
  • Al's Sport Store has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,1
    9·1 answer
  • Many products available to the public before world war i contained _______, which was accepted early on as a relatively harmless
    6·1 answer
  • Aside from human user types, there are two other non-human user groups. Known as account types, ________________ are accounts im
    15·1 answer
  • The demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its c
    15·1 answer
  • Describe six factors that can affect participation in sport and active leisure.
    14·1 answer
  • An American helicopter manufacturer contracted with a foreign hospital located in a severely war-torn region to sell five helico
    14·1 answer
  • I WILL GIVE BRAINLIEST!!!! How might a mixed economy guard against the risks and disadvantages associated with market and comman
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!