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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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how would a significant increase in consumption and economic activity among a nations consumers affect the nation economy
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7 0
3 years ago
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value
jolli1 [7]

Answer:

-3 million dollars

Explanation:

we have EVA = economic value added

to ge the EVA, we use this formula :

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b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.

3 0
2 years ago
Diana is a customer of Apexoria Bank, which is not a member of the FDIC. She currently has a checking account with $11,000 in it
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7 0
3 years ago
Read 2 more answers
Newdex has net income of $3,000,000 (INCLUDING the effect of expected out-of-pocket costs) and 1,000,000 shares outstanding. It
kkurt [141]

Answer:

$416,667

Explanation:

Current EPS = $3,000,000 / 1,000,000

Current EPS = $3

Net Proceeds per share = $40 * 90%

Net Proceeds per share = $36  

New Number of Shares = $5,000,000 / $36

New Number of Shares = 138888.88

Total Number of Shares Outstanding after the new issue = 1138888.88 shares

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Amount of Dilution in EPS = $0.3658

Net Income must increase by 1138888.88 * $0.3658 = $416,667. So, Newdex's after-tax income must increase to $416,667 to prevent dilution of earnings per share.

6 0
3 years ago
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