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
LenKa [72]
3 years ago
9

Dynamic Defenses Corporation is considering a project that will have fixed costs of $10,000,000. The product will be sold for $4

1.50 per unit, and will incur a variable cost of $10.75 per unit. Therefore, Defencse Dynamics has to sell (314,199, 551,724, 330,770, or 116,012) units to break even on this project.
Defense Dynamics marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she beleives that the firm will be able to sell only about 200,000 units. However, she also thinks that the demand for Defense Dynamics product is realatively inelastic, so the firm can increase the sales price. Assuming that the firm can sell 200,000 units, what price must it set to break even?

a. $77.83
b. $70.75
c. $67.21
d. $84.90
Business
1 answer:
yulyashka [42]3 years ago
6 0

Answer:

1. Defencse Dynamics has to sell 325,203 units units to break even on this project.

2. Assuming that the firm can sell 200,000 units, Price it must set to break even is $60.75

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit) = $10,000,000/( $41.50 - $10.75) = 325,203 units

The firm can sell 200,000 units.

Price it must set to break even = (Fixed cost/Break-even point in units) + Variable cost per unit = ($10,000,000/200,000) + $10.75 = $60.75

You might be interested in
Suppose that you won a lawsuit and were awarded a series of payments of $10,000 a year for 10 years. Assuming an interest rate o
DochEvi [55]
Okay. So it's $10,000 per year, which is $100,000 in 10 years. I'm not so sure how to solve it exactly, but I found a lump sum calculator online. I put the information on that and according to the calculator, today's payment in a lump sum would be $50,894.93. The future value is $100,000 with 10 periods (in this case, years) of the interest rate of 7% once per year. I think that the answer is $50,894.93.
4 0
3 years ago
What will be the resulting change in equilibrium of the chocolate bar market
myrzilka [38]

Equilibrium price will increase and quantity will decrease will be the resulting change in the equilibrium of the chocolate bar market.

The equilibrium charge is the rate at which the amount demanded equals the amount supplied. It's far decided through the intersection of the demand and deliver curves. A surplus exists if the amount of an excellent or carrier provided exceeds the amount demanded on the contemporary charge; it causes downward strain on the charge.

Equilibrium is the nation wherein market supply calls for balance every other, and as a result, costs come to be strong. Typically, an over-supply of goods or services causes expenses to move down, which results in a higher call for—while an underneath-deliver or shortage causes fees to head up resulting in less demand.

Upward shifts inside the supply and demand curves have an effect on the equilibrium rate and amount. If the deliver curve shifts upward, meaning deliver decreases however demand holds constant, the equilibrium rate will increase but the quantity falls.

Learn more about the Equilibrium price here brainly.com/question/26075805

#SPJ4

3 0
2 years ago
How long does it take to become a​ millionaire? A ​$500,000 investment will hit​ $1 million in 39 years at an annual interest ra
Solnce55 [7]

Answer:

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to A=P(!+\frac{r}{100})^n

1000000=500000(!+\frac{1.79}{100})^n

2=(1.0179)^n

Taking log both side

log2=nlog1.0179

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So 1000000=500000(1+\frac{2.34}{100})^n

2=(1+\frac{2.34}{100})^n

2=1.0234^n

taking log both side

log 2 = n log 1.0234

n×0.01 = 0.3010

n = 30.10 year

8 0
3 years ago
Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contribu
spin [16.1K]

Answer:

$102,000

Explanation:

According to 26 US code Section 704(c) - Partner's distributive share :

Taxable gain to be recognized from sale = Sale value - ( Partner's share * Fair market value )

Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.

So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.

Partnerships are pass through entities, the partners are taxed, not the partnership itself.

3 0
3 years ago
Earned net income of $65,000 after deducting depreciation of $8,000 and all other expenses. Current assets decreased by $7,000​,
Drupady [299]

Answer:

Cash provided by operating activities is 89.000

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 65.000

Adjustment to reconcile the net income to cash  

+ Depreciation expense 8.000

+ Current assets decrease 7.000

+ Current liabilities increase 9.000

Net cash 89.000

7 0
3 years ago
Other questions:
  • Ralph and simone do business as tech troubleshooters, a partnership. in most states, for the purposes of collecting judgments an
    8·1 answer
  • Vital Industries manufactured​ 2,400 units of its product Huge in the month of April. It incurred a total cost of​ $132,000 duri
    8·1 answer
  • According to the law of supply, assuming other factors are held constant
    13·1 answer
  • In a command economy:_______
    15·1 answer
  • Mm mjhuuuuuuuuuuuuuuuuuuuuuh
    9·2 answers
  • PLEASE HELP!
    7·2 answers
  • Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statem
    13·1 answer
  • A customer browses through several online retail sites and examines product descriptions of several different styles and brands
    11·1 answer
  • The differences between small data and big data for companies
    15·1 answer
  • Dorsett Corporation's income tax return for Year 8 shows deductions exceeding gross income by $56,800. Included in the tax retur
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!