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astraxan [27]
3 years ago
11

The total market demand for toys in Springfield is 100,000 units. A company manufacturing toys has a variable cost is $10 per to

y. Selling price is $18 per toy and Company Fixed cost is $160,000. Calculate the break Even Volume it should obtain to reach a target profit of $200,000. 25% 35% 40% 45% None of the above
Business
1 answer:
jarptica [38.1K]3 years ago
5 0

Answer:

    = 45%

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level, profit is zero because  the total revenue  is equal to total cost.</em>

The break-even point is calculated as

Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit

<em>Contribution per unit = Selling Price - Variable cost</em>

<em>So the units requited to achieve target for Springfield is:</em>

Units to achieve target profit

= (160,000 + 200,000)/(18-10)

  =  45,000 units

In % = (45,000/100,000 ) × 100

      = 45%

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Answer:

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2 years ago
Dartmouth Assessment Centre screens and trains employees for a computer assembly firm in Halifax. The progress of all trainees i
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Answer:

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