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Verdich [7]
3 years ago
14

The manager at Vertical Wire Productions reported total sales revenue of $800,000. The variable expenses were $600,000, and ther

e were $125,000 of total fixed expenses. Use the contribution margin shortcut formula to predict the breakeven point in dollars.
Business
1 answer:
Brilliant_brown [7]3 years ago
5 0

Answer:

BEP_{dollars} = 500,000

Explanation:

<u>The first step</u> will be  get the contribtuion margin:

Sales\: Revenue - Variable \:Cost = Contribution \:Margin

800,000 - 6000,000 = 200,000

This is the amount after variables cost used to pay the fixed cost and make a gain.

Second, we calcualte the contribution margin ratio

\frac{Contribution \:Margin}{Sales\: Revenue} = Contribution\: Margin\: Ratio

200,000/800,000 = 0.25

Per dollar of sales 25 cents are available to pay the fixed cost.

Now, we calculate the break even point in dollars

\frac{Fixed\:Cost}{Contribution\: Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{125,000}{.025} = 500,000

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Which of the following are attributes of California's legislative process for passing state budgets and controlling taxes?
scoray [572]

Answer:

- The state's constitution allows budgets to be passed with a simple majority vote in both the Assembly and the Senate.

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Explanation:

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A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the inte
Troyanec [42]

Answer:

The APY is 14.9%

Explanation:

To find the annual percentage yield we need to compute the effective annual rate of interest.

The Effective annual rate of return(EAR) is the equivalent rate to be paid where compounding is done frequently at period or interval less than a year.

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The EAR can be worked out as follows

EAR = ( (1+r)^m - 1 ) × 100

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5 0
3 years ago
What is the Porter's 5 forces model?
neonofarm [45]

Answer:

Created by a Professor Michael E. Porter, from Harvard, this model explains the various forces applied to a business.

Competition in the industry : Are there competitors in the industry?  If so, are they numerous and weak or is the industry dominated by a few major players?

Potential of new entrants into the industry : What's the risk of having new competition?  If you are selling a product, can you protect it with a patent for example?

Power of suppliers : Can the suppliers of what you need easily affect the prices?  It's basically asking if there is competition in your suppliers' market.

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Threat of substitute products: Is there any comparable product/service offered at a lower cost that might bring your prices down?

4 0
3 years ago
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formul
Alexandra [31]

Answer:

$981,000 - Total Building Cost

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To answer this question, we were told that the customer wants to build a moderate 3,800 square foot home. However, although it says with no utilities, utility cost will be applicable because it represents what is needed by the builders and engineers to get their work done on the vacant lot of land.

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6 0
3 years ago
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