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
Artyom0805 [142]
3 years ago
6

A small clothing company plans to sell a new line of shirts. The selling price will be $35 per shirt. The labor costs will be $5

per shirt. The cost of materials will be $10 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually and the sales and marketing expenses are $20,000 a year. How many shirts it has to sell in order to break-even?
Business
1 answer:
RideAnS [48]3 years ago
7 0

Answer:

The correct answer is 4,000 shirts.

Explanation:

According to the scenario, computation of the given data are as follows:

Selling price = $35

Labor cost = $5

Cost of material = $10

So, Contribution margin amount = $35 - $5 - $10 = $20

And fixed cost = $60,000 + $20,000 = $80,000

So, we can calculate the breakeven units by using following formula:

Breakeven units = Fixed cost ÷ Contribution margin

= $80,000 ÷ $20

= 4,000 shirts

You might be interested in
According to the affordable care act new health insurance marketplaces are established by the
jekas [21]
<span>According to the Affordable Care Act new health insurance marketplaces are established by the Patient Protection Act. This Act was put in place to let patients compare different health insurance companies and benefits to determine what is best for them. The benefits are dependent on how many people or an individual needs coverage and what type of coverage they are wanting to have. </span>
6 0
3 years ago
Rahls issues stock to investors for $20,000, and has $5,000 of net income in its first year of operations. During Year 2, Rahls
Eva8 [605]

Answer:

The balance in stockholders' equity at the end of year 2 is $31,000

Explanation:

For computing the balance in stockholder equity at the end of year 2, first, we have to compute the balance for year 1  which is shown below:

Year 1 equity balance = Issue of stock + Net income

                                     = $20,000 + $5,000

                                     = $25,000

Now, year 2 balance would equal to

= Year 1 balance + Net income - Dividend paid

= $25,000 + $10,000 - $4,000

= $31,000

Hence, the balance in stockholders' equity at the end of year 2 is $31,000

4 0
3 years ago
The combination of debt financing and equity financing that maximizes a firm's value is known as its:
ohaa [14]

Answer:

optimal capital structure

Explanation:

optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

5 0
2 years ago
Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2011, Richard was r
murzikaleks [220]

Answer:

$10,800

Explanation:

Alice's gross income must include the money she received from Richard as part of their divorce settlement, excluding the amount set for child support:

Alice's gross income = 12 x ($1,500 - $600) = 12 x $900 = $10,800

The extra money that Richard gave Alice that was not part of the divorce settlement is not included in her gross income, since it is included in Richard's gross income.

4 0
2 years ago
A disadvantage of the line structure is that it
Ivahew [28]

Answer:

Disadvantages of a Line Organization

A line organization can suffer from a lack of specialization. This is because each department manager is concerned only with the activities of his own department. Therefore, employees are skilled in tasks pertaining to their departments alone.

These organizations can overburden a keyman or a few key-men to the extent of their breaking point. Also, in the absence of a staff aid, if a strong man seizes the organization, he can run it arbitrarily. Such arbitrary power can lead to a considerable damage to the organization.

Such organizations usually suffer from a lack of expert advice. If the line manager has trouble making a decision, there is no expert staff that he can turn to.

A line organization is usually rigid and inflexible. In fact, such organizations maintain discipline so rigorously that they can rarely change.

These organizations are based on the autocratic system of management.

The division of work is not based on any scientific plan but on the whims of the manager.

It might stop progress and prevent the unit to work effectively.

Such organizations might also encourage nepotism or favoritism based on relationship or friendship.

I hope this is helpful information.

8 0
2 years ago
Other questions:
  • Finding the interest rate and the number of years The future value and present value equations also help in finding the interest
    7·1 answer
  • In the process of searching for a job, you need to ____
    15·1 answer
  • Long-term debt on the common-size balance sheet of Solid Rock Construction over the past three years is 30%, 34%, and 40%, respe
    8·2 answers
  • There are fundamentally two possible changes in an economy that will each cause inflation unless other compensating changes also
    13·1 answer
  • The Federal Reserve System (the 'Fed') was created by the Federal Reserve Act, passed by Congress in 1913, and began operations
    10·1 answer
  • Planters Bank pays 5 percent simple interest on its savings account balances, whereas Centura Bank pays 5 percent compounded ann
    8·1 answer
  • A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen
    10·1 answer
  • Suppose Value Home and Garden Imports issued 400,000 shares of $0.10 par common stock at $4 per share. Which journal entry corre
    12·1 answer
  • 13
    14·1 answer
  • A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!