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yawa3891 [41]
3 years ago
7

Gourmet Pets is interested in computing the breakeven quantity for its new product, Prime Cuts. The annual fixed costs that must

be covered by this product amounts to $750,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per can. The breakeven quantity is _____ .
Business
1 answer:
dlinn [17]3 years ago
7 0

Answer:

187,500 units.

Explanation:

Fixed cost= $750,000

Variable cost= $2

Price= $6

To calculate the break-even quantity, we use the formula

Break even= Fixed cost ÷ (Price - Variable cost)

Let's input the values of each

$750,000/($6 - $2)

= $750, 000/ $4

= 187,500 units.

Therefore the break even is 187,500 units.

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Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 32.50 Total fixe
Neporo4naja [7]

Answer: 26.5% increase

Explanation:

Current profit = Sales - Variable costs - fixed costs

= ((32.50 - 16.50) * 360 bears) - 1,420

= $4,340

Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears

New profit;

= ((32.50 - 16.50) * 432 bears) - 1,420

= $5,492

Effect of sales increase = ( 5,492 - 4,340) / 4,340

= 26.5% increase

8 0
3 years ago
Assume that we are in the MM world. Health and Wealth Company is financed entirely by common stock that is priced to offer a 12
Levart [38]

Answer:

13%

Explanation:

the new cost of equity = old cost of equity + [(debt / equity) x (old cost of equity - cost of debt)]

the new cost of equity = 12%+ [(20 / 80) x (12% - 8%)] = 12% + 1% = 13%

Since we are in the MM world, taxes do not exist, therefore they are not included in the equation.

7 0
3 years ago
Jethro has a(n) ____________________ in all aspects of camping: he is faster at carrying a backpack, gathering firewood, paddlin
Alika [10]

Jethro has an absolute advantage in all aspects of camping: he is faster at carrying a backpack, gathering firewood, paddling a canoe, setting up tents, making a meal, and washing up.

Absolute advantage refers to an individual's capacity to efficiently carry out a task when compared to other individuals or groups.

  • In economics, this broadly refers to the ability and capacity to produce and conduct an economic good or a particular service in a more efficient manner than the competitors.
  • In this case Jethro has an absolute advantage in all aspects of camping.
  • Within the constraints of the economic activity, production is more efficient and higher.
  • Fewer resources are required to produce a particular commodity and/or service that needs higher resources for the competitors.
  • With fewer inputs, the outputs stand maximized in the context of absolute advantage.

Therefore, Jethro has an absolute advantage in all aspects of camping: he is faster at carrying a backpack, gathering firewood, paddling a canoe, setting up tents, making a meal, and washing up.

Learn more about absolute advantage here:

brainly.com/question/14044496

#SPJ4

5 0
2 years ago
You are stocking shelves when you notice that a large line has formed at the only open cash register. what will you do?
Sauron [17]
I will stop what I am doing to go open another cash register so things will move by quicker and customers won't get irritated
7 0
3 years ago
Read 2 more answers
Eileen transfers property worth $200,000, basis of $60,000, to Goldfinch Corporation. In return, she receives 82% of the stock i
erica [24]

Answer:

C. $20,000

Explanation:

Given the data below,

Property transfered = $200,000

Basis = $60,000

Return = 82℅

Fair market value = $180,000

Long term fair market value = $20,000

In the above scenario, we can safely say that Eileen realized gain of $140,000 on the transfer of property, which is due to;

Property worth $200,000 - basis $60,000 = $140,000.

However, because recognized gain cannot exceed the lesser of realized gain ($140,000) or the boot received ($20,000), the recognized gain is therefore $20,000

3 0
3 years ago
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