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seraphim [82]
3 years ago
11

If a firm has a sales price per unit of $6.00, a variable cost per unit of $4.00, and a break-even point of 40,000 units, fixed

costs are equal to​
Business
1 answer:
Ugo [173]3 years ago
5 0

Answer:

$80,000

Explanation:

From marginal analysis concepts, the break-even point is determined using the formula.

Break-even in units = fixed cost / contribution margin per unit

For this firm,

break -even = 40,000 units

Contribution margin per unit = selling price - variable costs

=$6 - $4 =$2

Therefore:

40,000 = fixed costs/ $2

Fixed costs = $40,000 x 2

Fixed costs = $80,000

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Kenneth Hill Inc. claims to be an employee-centered company. It has created a system of management wherein supervisors will have
horsena [70]

Answer:

This type of organizational behavior can be described as conflict theory.

Explanation:

Conflict theory was given by Karl Marx , according to which social order is maintained through power and domination rather than consensus or conformity . This theory is based on the premise that individuals and groups in a society or in this case supervisors and their teams are working to maximize their own benefits.

6 0
3 years ago
Paper Clip Company sells office supplies. The following information summarizes the​ company's operating activities for the​ year
marin [14]

Answer:

$41,400

Explanation:

Calculation for Paper Clip Company Operating income

OPERATING NET INCOME for Paper Clip Company

Sales revenue 164,800

Less: Purchases of merchandise (89,900)

Utilities for the store (9,600)

Sales commission (10,100)

Rent for store (13,800)

Operating net income $41,400

Therefore the Operating net income will be $41,400

3 0
3 years ago
For a project with cash outflows during its life, the least preferred capital budgeting tool would be: A. internal rate of retur
Mashcka [7]

Answer:

A. internal rate of return.

Explanation:

Net present value method: In this method, the initial investment is deducted from the cash inflows of the discounted present value. If the sum comes under positive than the project would otherwise not be beneficial to the company.

The internal rate of return is that return in which the net present value is zero, meaning that the initial investment is equal to the present value of the annual cash flows after taking into account the discount factor

Moreover, the IRR could be in multiples also i.e multiple IRR.

5 0
3 years ago
A marketing campaign to target business travelers includes two advertising buys. One buy cost $4,600 and yielded 220 leads. The
Korvikt [17]

Answer:

$20.90 & $14.88

Explanation:

The average cost per lead is the marketing expense incurred to acquire a new potential customer.  The average cost per or CPL is calculated using the formula total marketing spend / total number of leads. CPL helps identify the most efficient advertising channel.

For the first advertising buy, average cost per lead

=$4,600/220

=$20.90

For the second advertising buy

=$6700/450

=$14.88

3 0
3 years ago
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)
Genrish500 [490]

Answer:

1.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $9,000

                        Allowance for doubtful accounts                                 $9,000

Working

= 3% * 300,000

= $9,000

2.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,000

                        Allowance for doubtful accounts                              $12,000

Working

= 1% * total debt

= 1% * (900,000 + 300,000)

= $12,000

3.

Date                   Account Title                                             Debit          Credit

Dec. 31             Bad debt expense                                    $12,500

                        Allowance for doubtful accounts                              $12,500

Working

= 6% * Accounts receivable

= 6% * 125,000

= $7,500

As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.

= 7,500 + 5,000

= $12,500

8 0
3 years ago
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