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VladimirAG [237]
3 years ago
10

A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $240,000. The nu

mber of units the company must sell to break even is Select one: a. 120,000 units b. 48,000 units c. 480,000 units d. 80,000 units
Business
1 answer:
matrenka [14]3 years ago
3 0

Answer:

a. 120,000 units

Explanation:

The formula to compute the break even point is shown below:

= (Total fixed cost) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $5 - $3

= $2 per unit

And, the total fixed cost is $240,000

So, the break even point in units is

= $240,000 ÷ $2 per unit

= 120,000 units

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Oksi-84 [34.3K]

Answer:

D) a rise in price

Explanation:

At the equilibrium point, the quantity demanded and the quantity supplied are the same. There is no excess shortage or supply in both demand and supply.

A shortage occurs when suppliers are not able to meet the market demand. Here, demand is the quantity that buyers are willing to buys at a specific price over time.  As per the law of demand, high product price causes demand to decrease while low price results in increased demand.

A shortage of a product means its demand is high. Many buyers are willing to buy the commodity at the current price.  As per the law of demand, a price increase will result in reduced demand and achieve equilibrium.

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3 years ago
Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent
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Answer:

Prerequisite 1  

There are three nonexclusive serious techniques:  

Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.  

Separation - items or administrations gave elite highlights that clients need, commonly an increasingly devoted specialty. Ready to charge more significant expenses because of these additional highlights.  

Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.  

Vincent's business utilizes a Focus Strategy. The Cappuccino Express was made with the conviction that because of individuals' evolving schedules, comfort would be vital – giving speedy and advantageous espresso to occupied individuals.  

Prerequisite 2  

Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.  

The Cappuccino Express Critical Success Factors :  

Quality and cost of existing items  

Areas specific..near Malls , schools , workplaces and so forth.  

Devise new items at customary interims  

Client Turnover – capacity to keep lines short, vehicles traveling through line  

Keeping Loyal clients with quality items along these lines diminishing ad costs  

Giving incredible client support  

Improving Profitability  

The greater part of these Vincent will have the option to show some power about whether it is adjusting costs, items, guiding various areas or making preparing programs. Then again, if Vincent's essential supposition never again remains constant, regardless of what he does he will most likely be unable to equal the initial investment, not to mention turn a benefit.  

Prerequisite 2  

Vincent needs to leave on numerous assignments in dealing with The Cappuccino Express. To start with, Vincent must blueprint a statement of purpose, objectives, and destinations. As supervisor, Vincent must do statistical surveying. He should get some answers concerning his rivals, clients, and the economy. Additionally, he should utilize a workforce and train them. He should isolate the expenses into assembling costs (direct materials, direct work, and assembling overhead) and non producing costs (selling and managerial expenses). This will take into account monetary observing and precise gauges of benefits, stock, and expenses. Vincent ought to assess both of his areas and conclude whether to remain in business or grow. Additionally, Vincent ought to evaluate his item contributions, administrations, and quality. He can choose which sorts of publicizing (advancements and limits) to offer.

8 0
3 years ago
The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution wi
ale4655 [162]

Answer:

A) 200 units

Explanation:

mean daily demand = 20 calculators

standard deviation = 4 calculators

lead time = 9 days

z-critical value (for 95% in-stock probability) = 1.96

normal consumption during lead-time:

= mean demand × lead time

= 20 × 9

= 180 calculators

safety stock = z × SD × √L

                    = 1.96 × 4 × √9

                    = 1.96 × 4 × 3

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reorder point = normal consumption + safety stock

                       = 180 + 23.52

                       = 203.52 calculators

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3 years ago
What is the best strategy to avoid paying interest on your credit cards?
lord [1]

c pay the miminum balance each month

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3 years ago
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The following amounts were taken from the financial statements of Ando Company: 2017 2016 Total assets $800,000 $1,000,000 Net s
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Answer:

35 times

Explanation:

The price-earnings ratio is the financial ratio that compares the market price of a share with its earnings in order to determine whether the share gives earnings that makes it a good buy.

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market price per share for 2017 is $42

earnings per share=net income-dividends/average common stock outstanding

net income is $108,000

dividends is nil

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earnings per share=$108,000-$0/90,000=$1.2

price earnings ratio=$42/$1.2=35 times

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3 years ago
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