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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: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. A. The New York City government

3. B. Municipal bonds

4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments

5. B. Treasury bonds

Explanation:

1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.

2. The City of New York issued to bonds in question so it is a New York City Government bond.

3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.

4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.

5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.

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The charter of Vista West Corporation specifies that it is authorized to issue 213,000 shares of common stock. Since the company
vaieri [72.5K]

Answer:

The authorized shares 213,000

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The outstanding shares 125,000

Explanation:

The authorized shares are the maximum number of shares that can be issued by the company as spelt out in its charter which is 213,000.

The number of shares issued to the public from its inception till date is 141,000 shares, in other words, that is its issued shares.

The outstanding shares is the number of shares currently held by investors in the company's shares, in essence, outstanding shares are the issued shares minus the shares already bought back( repurchased from shareholders)

Outstanding shares=141,000-16,000.

Outstanding shares=125,000

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kondaur [170]
I think c is the correct answer
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