1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dezoksy [38]
3 years ago
6

Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determ

ine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price increased to $80 per unit units
Business
1 answer:
FrozenT [24]3 years ago
7 0

Answer:

(a) 2,125 units

(b) 1,417 units

Explanation:

Given that,

Selling price = $60 per unit

Variable cost = $20 per unit

Fixed costs = $85,000

(a) Contribution margin per unit:

= Selling price - Variable cost

= $60 - $20

= $40

Break-even point in sales units:

= Fixed costs ÷ Contribution margin per unit

= $85,000 ÷ $40

= 2,125 units

(b) If the selling price increased to $80 per unit,

Contribution margin per unit:

= Selling price - Variable cost

= $80 - $20

= $60

Break-even point in sales units:

= Fixed costs ÷ Contribution margin per unit

= $85,000 ÷ $60

= 1,417 units

You might be interested in
If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is: Select one:
raketka [301]

Answer:

a. under applied.

Explanation:

For computing, whether it is under applied or over applied first, we have to compute the predetermined overhead rate. The formula is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

Now we have to find the applied overhead which equal to

= Actual direct labor-hours × predetermined overhead rate

So, the ending overhead equals to

= Actual manufacturing overhead - applied overhead

= under-applied  

If actual overhead is more than the applied overhead

3 0
3 years ago
Additions and improvements
zvonat [6]

Answer: D- increase the net book value of plant assets when incurred.

Explanation:Plant Assets like property, plant, equipment are fixed assets and are referred to the resources that have physical substance. They are used in the running of a business and are not for customers sale.

-Additions and Improvements are the costs incurred to increase a plant assets by increasing efficiency and productiveness of the asset, they increase the net book value of plant assets when they are incurred leading to more productive facilities and output

4 0
4 years ago
Carla Vista Pharmaceuticals entered into a licensing agreement with Zenith Lab for a new drug under development. Carla Vista wil
frez [133]

Answer:

Depends on the valuation method, it can be either:

A) $7,605,000

B) $8,450,000

Explanation:

A) If Carla Vista uses the "expected value method", then the transaction price of this arrangement should = $8,450,000 x 90% = $7,605,000

B) If Carla Vista uses the "most likely method", then the transaction price of this arrangement should = $8,450,000

7 0
3 years ago
A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the
solong [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the end of its​ five-year life.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Book value= Original cost - accumulated depreciation

5 0
3 years ago
Mallory hires Raghav to work for one year as an assistant manager at $5,500 per month, reserving the right to cancel the contrac
amid [387]

Answer: No, because Mallory and Raghav are not bound by the contract.

Explanation: Being bound by a contract entails being linked to a written agreement, the breaching of which could result in consequences lying with the person who breached the contract. However when this contract was entered into, there was a clause that allowed the parties to cancel the contract at any time. When Mallory fired Raghav the contract was subsequently cancelled, making the contract null and void (non - existent). This means that Raghav is not entitled to the outstanding 10 months' salaries.

7 0
3 years ago
Other questions:
  • Which of the following structures is least likely to require a deep foundation? A.hospital B.skyscraper C.apartment building D.s
    14·1 answer
  • The total cost of 7 pears is 12.50. how much will 11 pears cost
    11·2 answers
  • Slumber is considering eliminating the pillows product line. If this line is​ eliminated, Slumber will be able to eliminate of t
    14·1 answer
  • Brie just created the blueprint of a deck using her computer software. She then sent the design to Gunther, who estimated the to
    12·2 answers
  • A firm claims on its website that it has been in the same location for over 50 years and has lower overhead than other firms bec
    6·1 answer
  • ​Individuals who are responsible for what is sometimes called creative selling, which is selling a firm's products to new custom
    6·1 answer
  • Six equal annual contributions are made to a fund, with the first deposit on December 31, 2019. Required: Using the future value
    9·1 answer
  • The following events took place at a manufacturing company for the current year:
    5·1 answer
  • Thornton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory pur
    5·1 answer
  • What was the impact of the entry of the united states into world war one Germany faced a greater number of allied troops as more
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!