Answer:
break even point in units = 2,667
break even point in $ = $33,338
Explanation:
The break even point marks the point where a company is able to cover all its expenses. At this point the company is not losing money, but it is not making a profit either.
break even point in units = total fixed costs / contribution margin
- total fixed costs = $10,000
- contribution margin = $12.50 - ($4 + $4.75) = $12.50 - $8.75 = $3.75
break even point in units = $10,000 / $3.75 = 2,666.67 ≈ 2,667 units
break even point in $ = 2,667 units x $12.50 per unit = $33,337.50 ≈ $33,338
Answer:
If the amount is 1 for example,
And the bank does not want to pay more than 4%, then the amount will be,
4/100 ×1= 0.04
Answer:
The monthly payment will be $434
Explanation:
Price of New car = $21,900
Price of old car exchanged = $2,350
Cash Payment = $850
Amount of Loan = $21,900 - $2,350 - $850
Amount of Loan = A = $18,700
Rate of interest = r = 6% = 0.06 = 0.005 per month
Number of total periods = 12 x 4 = 48
P = $18500 / { [ ( 1 + 0.005 )^48 ] - 1 } / [ 0.005 ( 1 + 0.005)^48 ]
P = $18500 / [ 0.2704891611 / 0.006352446 ]
P = $18500 / 42.58
P = $434.47
Answer: $4,800
Explanation:
First find the Annual holding cost:
= Average inventory * Cost of holding a unit
= 500/2 * 1 * 12 months
= $3,000
Then find the Annual ordering cost:
= Expected units to be sold/ Units ordered * Ordering cost
= 9,000/500 * 100
= $1,800
Annual Inventory cost = Annual holding cost + Annual ordering cost
= 3,000 + 1,800
= $4,800
