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denis-greek [22]
3 years ago
12

Benson Company produces flash drives for computers which have variable costs of $10 per flash drive to produce. Each flash drive

sells for $20 each. During the current month, 1,000 flash drives were sold. Fixed costs for the current month were $4,500. If variable costs increase by 10%, what happens to the breakeven level in units for the month for Benson Company? It is 10% lower than the original breakeven point. It depends on the number of units the company expects to produce and sell. It increases by 50 units. It is 10% higher than the original breakeven point.
Business
1 answer:
Leno4ka [110]3 years ago
6 0

Answer:

It increases by 50 units.

Explanation:

Current break even point = \frac{Fixed\:Cost}{Contribution\:per\:unit}

Here, fixed cost = $4,500

Contribution per unit = Selling price - Variable Cost = $20 - $10 = $10

Current break even point = \frac{4,500}{10} = 450 units

If variable cost increase by 10% then revised variable cost = $10 + 10% = $11

Contribution per unit = $20 - $11 = $9 per unit

Break even sales in units = \frac{4,500}{9} = 500 units

Difference in original and revised break even = Revised - Original = 500 - 450 units = 50 units,

Thus original break even increases by 50 units, = 50/450 = 11.11% increase.

Final Answer

It increases by 50 units.

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Answer:

Net cash flow from operating activities

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Explanation:

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Cash flow from operating activities :

Net income $1,300,000

Net Cash flow from operating activities:

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Add accounts receivable decreased $455,000

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3 years ago
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Answer:

D. Americans purchase more Canadian made products.

Explanation:

The situation that would typically result from an appreciating U.S. dollar relative to the Canadian dollar is "Americans purchase more Canadian made products."

When Americans purchase more Canadian-made products, the Canadian dollar will rise or appreciate against the U.S. dollar. This is based on the principle of trade balance, whereby the monetary value of a country's imports and exports are evaluated over a given period.

In this case, the monetary value of Canadian exports against the U.S. dollar will indicate a positive trade surplus, hence, the Canadian dollar or currency will appreciate against the U.S. dollar.

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3 years ago
Is rearranging words in a sentence a good way to avoid plagiarism? No Yes
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2 years ago
Given the following items and costs as of the balance sheet date, determine the value of Light Company's merchandise inventory.
STALIN [3.7K]

Answer:

Light Company

Merchandise Inventory:

Goods $2,400 sold on FOB shipping point =            $0

Goods $3,400 bought on FOB shipping point =       $3,400

Goods $4,400 on consignment               =                 $4,400

Goods $5,400 with net realizable value of $1,200 = $1,200

Value of inventory owned by Light Company     =  $9,000

Explanation:

a) Goods $2,400 sold on FOB shipping point: FOB shipping point means Free on Board shipping point.  This trade term specifies when ownership right is established, that it is at the shipping point and not the destination of the goods when the buyer takes possession.  The ownership was transferred to customer at shipping point with all risks and benefits.  They no longer belong to Light and are therefore not part of Light's inventory after the shipment.

b) Goods $3,400 bought on FOB shipping point:  As explained above, the ownership right and obligation were transferred at shipping point.  The goods belong to Light as it is the lawful owner based on the shipping term.

c) Goods $4,400 on consignment:  Goods on consignment do not belong legally to consignee though they are at his physical possession.  They belong to the consignor until they are sold to a third party.

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7 0
3 years ago
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