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3 years ago

EA11.

Business

1 answer:

stich3 [128]3 years ago

6 0

Answer:

The question is incomplete. The complete question is given as follows:

Selling Price per unit Variable cost per unit

Product $ $

Snowboards 320.00 170.00

Skis 400.00 225.00

Poles 50.00 20.00

Answer: Snowboard-840 units, Ski- 360 units and Poles-240 units

Explanation:

The break-even point is the activity level where the total cost of a business is the same as its total revenue. At this point, the business makes neither profit nor loss. This analysis helps a firm to know how many clients to be served or units to be produced in order to cover its fixed costs.

A break-even point can be calculated using the following relationships below:

A single-product scenario

Break-even point (in units) = Total general fixed costs/(selling price -Variable cost)

Multiple-products scenario

Break-even point (in units) = Total general fixed costs/ average contribution per unit.

Total general fixed costs are period costs which remain the same within a given activity level, and cannot be said to be incurred for a specific product.

We will use use the second formula, because there are multiple product

Snow Ski Poles

$ $ $

Selling price 320 400 50

Variable cost (170) (225) (20)

Contribution(SP-VC) 150 175 30

Cont. from a mix(cont × unit) 1050 525 60

Average contribution = (1050+525+60)/(7+3+2)

= $136.25

Break-even point (in units) = $196200/$136.25

= 1,440 units.

Salvador will need to sell a total of 1,440 units in following mix to break-even:

Snowboards= (7/12) *× 1,440= 840 units

Skis= (3/12) × 1,440= 360 units

Poles = (2/12) ×1.440= 240 units

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1 year ago

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Answer:

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3 years ago

Read 2 more answers

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Answer:

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b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60 packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?

if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.

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in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.

d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per vehicle after supervisors are introduced?

$300 / 60 = $5
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