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Taya2010 [7]
3 years ago
9

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The fo

llowing cost information describes the two alternatives Process A Process BFixed Cost $500,000 $750,000Variable Cost per Unit $25.00 $23.00The break-even volume for Process A isa. 50,000 unitsb. 62,500 unitsc. 30,000 unitsd. 20,000 units
Business
1 answer:
Lady_Fox [76]3 years ago
6 0

Answer:

a. 50,000 units

Explanation:

Breakeven point is the units  required to be sold for the total cost to be equivalent to the sales. As such, break even is the point where profit/loss is nil.

Given information about product A;

Fixed cost = $500,000

variable cost per unit = $25

Selling price per unit = $35

Breakeven in units = fixed cost/(selling price per unit - variable cost per unit)

= 500,000/(35 - 25)

= 50,000 units

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Answer:  3.50 years

Explanation:

The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.

Formula is;

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

Year 1 Net Cash Inflow

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Year 2

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Year 3

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Year 4

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Year 1 + 2 + 3

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= $10,000

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

= 3 + 10,000/20,000

= 3.50 years

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Answer:

B

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What type of bank account is best for everyday transactions?
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Explanation:

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