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
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

You might be interested in
George is considering an investment that will pay $3,250 a year for eight years, starting one year from today. What is the maxim
garri49 [273]
$18676.58 is the amount he should pay
6 0
3 years ago
After a loan is sold in the secondary market, the originating lender may be required to repurchase the loan due to
svetoff [14.1K]

Answer:

hard work thats hard thinking

Explanation:

just try your best

6 0
2 years ago
Explain the difference between the law of diminishing marginal returns and the law of dininishing marginal rate of techinal subs
leonid [27]

Answer:

The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.

Explanation:

One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.

On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.

3 0
3 years ago
Master scheduling is __________. a. a field in the master schedule record that indicates the number of units that are available
Karolina [17]

Answer:

D if this is anything related to business then there is always something that reviews everything and the most common term for it is Master scheduling.

Explanation:

5 0
3 years ago
In july, lane co. Sells merchandise to avery co. On account. In august, avery pays the balance in full. The entry that lane will
vovangra [49]

The entry that lane will make to record the receipt of cash will include a credit to the Accounts Receivable account.

<h3>What is Accounts Receivable?</h3>

Accounts Receivable is the amount, which a company will receive from its customers who have purchased its goods & services on credit.

It refers to the money that the customer owe to the company for the goods or services that they have already received but not yet paid for.

For example- Goods purchase on credit by ABC, the amount gets added to the accounts receivable.

Learn more about the account receivable here:-

brainly.com/question/24261944

#SPJ1

6 0
2 years ago
Other questions:
  • PLEASE HURRY!!!!!!
    6·2 answers
  • Runaround Corporation sells running shoes and during January they ran production machines for 29 comma 000 hours total and incur
    9·1 answer
  • The list of calls for police service in chicago, illinois, which is discussed in your textbook, found which call for service mos
    5·1 answer
  • Say I have a wallet that contained either a $2 bill or a $20 bill (with equal likelihood), but I don’t know which one. I add a $
    13·1 answer
  • How do industry or external changes impact the things that you do personally?
    7·1 answer
  • Which speaker is most likely to make high-risk investments?
    8·1 answer
  • True or false: The labor rate variance measures the productivity of direct labor. True false question. True False
    8·1 answer
  • Ritz​ Products's materials​ manager, Tej​ Dhakar, must determine whether to make or buy a new semiconductor for the wrist TV tha
    15·1 answer
  • A utility-maximizing consumer buys so as to make ________ for all pairs of goods.
    11·1 answer
  • Which of the following allows portions of copyrighted materials to be used without permission under certain circumstances?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!