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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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antoniya [11.8K]

Answer:

Industrial supply company scenario:

  • The company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify best-selling products in specific geographic areas, key customers, and sales trends.
  • The sales and product information are stored in both a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe.
  • The desire is to create a single standard format that consolidates these data from both systems.

Business problems:

  • A business problem that can arise from not having these data in a single standard format is that employees will see the data as inconsistent.
  • It is difficult to make business decisions if the data is unreliable, inaccurate, or redundant.
  • The product descriptions are formatted differently so managers and employees might get confused when it is entered into the system.
  • Also, the system identifies the sales by territory in the United States so it would be impossible to identify the sales or even around the world.
  • The corporate sales system also lacks a way to identify the identification of the customer.
  • Both sales system should be consistent with the information in order to prevent redundancies or inaccuracies.  

How easy it would be to create a database with a single standard format:

  • Creating a database with a single standard format would ideally be easy.
  • Data quality audits and data cleansing should be performed when constructing the new database.
  • Data quality audits and data cleansing would correct any redundancies and inaccuracies in the current systems.
  • By using data-cleansing software, the company can combine and integrate the data from all the systems into a single standard format that is uniform throughout the whole company.

Problems that should be addressed:

  • A problem that should be addressed is the product description and sales territory tags.
  • These tags have different formats which could lead to inconsistencies in the data.
  • The names would have to be changed so that they are the same format and are only entered once in the new single standard format database.
  • Another problem that would have to be addressed is keeping both the division and customer id tags in the new database.
  • This would provide more information for each entry and would limit any confusion among the employees.

Database specialists:

  • Database specialists will help solve the problems by performing the data quality audits and data cleansing.
  • They will also help in establishing an information policy and developing the new database.
  • They are also responsible for the specific policies and procedures through which data can be managed as an organizational resource.
  • This involves overseeing logical database design and data dictionary development, planning for data, and monitoring how information systems specialists and end-user groups use data.

General business managers:

  • General business managers would have the final say when managing data resources.
  • They would be responsible for defining and organizing the structure and content of the database and maintaining the database.

Who should have the authority?

  • The general business managers should have the authority because they are responsible for the data.
  • This would mean that even though they allow database specialists to establish an information policy and develop the new database, the managers are the ones who have to approve the final product in order for it to be implemented company-wide.
  • The managers are the ones whose reputations are on the line when a company succeeds or fails, so they should have the final authority.

6 0
3 years ago
Match the economic scenario to the relevant characteristics. Increase in savings increase in unemployment more demand for funds
Elan Coil [88]

Answer:

Economic expansion

  • Increase in savings

The economy is expanding which means that people have access to higher wages. This will enable them to save more.

  • More demand for funds among borrowers

As the economy is expanding, people will borrow to consume more as well as to invest which will lead to a higher demand for borrowed funds.

  • Increase in price of products

With more people able to afford goods and services, prices will increase as there is now more demand for those goods.

Economic recession

  • Increase in unemployment

With the economy shrinking, companies will be making less profit and will have to layoff workers to reduce their costs.

  • Increase in government borrowing

In a recession, the Government will have to spend more to prop up the economy like the US Government did during this pandemic by providing stimulus packages. This spending is supported by borrowing.

3 0
2 years ago
If these are the only four sellers in the market, then when the price decreases from $4 to $2, the market quantity supplied
inn [45]

Answer:

Decreases by 50 percent

Explanation:

The law of supply asserts that other things remaining constant, the quantity of goods and services supplied increases as price rises. Therefore, the price and quantity supplied are directly related. Should the price fall, the quantity supplied will also decrease. Producers will prefer to supply more when the price is high to make more revenue.

The supply curve is upward sloping indicating how quantity supplied changes at different price levels. In the case, the price has decreased from $4 to $2, which represents a 50 percent drop. The quantities supplied will decrease as per the law of supply.  A 50 percent decrease may result in a similar decrease in quantity supplied as the supply curve is upward sloping.

4 0
3 years ago
A mortgage requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.
bazaltina [42]

Answer:

PV $402,264.7261

balance of the mortage

1-y from now   $364,445.9041

2-y from now   $323,601.5765

3-y from now  $279,489.7026

4-y from now  $231,848.8788

5-y from now $180,396.7891

6-y from now   $124,828.5322

7-y from now   $64,814.8148

Explanation:

We sovle for the PV of the annuity of 70,00 during 8 years discounted at 8%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 70,000.00

time 8

rate 0.08

70000 \times \frac{1-(1+0.08)^{-8} }{0.08} = PV\\

PV $402,264.7261

To know the value of the outstanding dbet we can repeat this formula changing the values for time

t = 7   $364,445.9041

t = 6   $323,601.5765

t = 5   $279,489.7026

t = 4   $231,848.8788

t = 3   $180,396.7891

t = 2   $124,828.5322

t = 1   $64,814.8148

8 0
3 years ago
Joe's Jalopies sold one of its warehouses for $300,000 cash plus a tractor with a fair market value of $25,000. The building had
spayn [35]

Answer:

$355,000

Explanation:

Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000

The warehouse had a mortgage of $50,000 against it.

The adjusted basis was $130,000

Joe had to make a payment of $20,000 in sales commission to the realtor

Therefore, the amount realized by Joe's jalopies can be calculated as follows

=$300,000+$25,000+$50,000-$20,000

= $375,000-$20,000

= $355,000

Hence the amount that was realized by Joe's jalopies is $355,000

7 0
3 years ago
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