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Nana76 [90]
3 years ago
7

Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $43 per unit with variable costs of $30

per unit. Plaid models sell for $52 per unit with variable costs of $45 per unit. Total fixed costs for the company are $9200. Mayfield Company typically sells four Blue models for every five Plaid models. What is the breakeven point in total units
Business
1 answer:
alekssr [168]3 years ago
6 0

Answer:

Break-even point in total units=  951.7units

Explanation:

<em>Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss</em>.

It is calculated using this formula:

<em>Break-even point (in units) = Fixed cost/ average contribution per unit</em>

                                                          <em>  Blue                          Plaid</em>

Contribution per unit                43-30 = 13                   52-45 = 7

<em>Average contribution per unit </em>

= ( (13× 4) + (7×5) )/9

= $ 9.66 per unit

<em>Break-even point in total units</em>

= $9200/$ 9.66

= 951.7units

Break-even point in total units= 951.7units

           

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Travis bought a share of stock for $31.50, the stock paid a dividend of $0.85, and Travis sold it six months later for $27.65. W
Luden [163]

Answer:

Dollar profit loss = $3

Holding period return = negative 9%

Explanation:

In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.

Selling price = 27.65

Dividend = 0.85

Selling price + Dividend= 28.5

Selling price = 31.50

Dollar profit loss or return = 28.50-31.5=-3

Loss= $3

In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.

(27.65+0.85-31.5)/31.5= -0.09 = -9%

Holding period return = negative 9%

5 0
3 years ago
The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J
Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0
3 years ago
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
VikaD [51]

Answer:

$281,612

Explanation:

Plane Operating Cost = Fixed cost + (Variable cost per unit1 × q1) + (Variable cost per unit 2 × q2)

Plane Operating Cost = $40,190 + ($2709*88) + ($10 * 303)

Plane Operating Cost = $40,190 + $238,392 + $3,030

Plane Operating Cost = $281,612

So, the plane operating costs in the planning budget for August would be $281,612

6 0
3 years ago
Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, t
Leni [432]

Answer: B - Internal Analysis

Explanation: Internal Analysis involves a company looking inwards to determine it's competencies, strength, weakness and advantages. Internal anaylsis usually incorporates a SWOT analysis.

A SWOT analysis is the analysis of the strength, weakness, opportunities and threats of the organisation.

An external analysis involves analysing the market place and economy to identify trends and put measures in place to take advantage of current trends to ensure profit maximization.

Competitior anaylsis involves analysising the competitions of an organisation to identify threats and opportunities so as to maximaise profit

Client advantage can arise from building a loyal customer base that always patronise the business or having a company been one of the few producers of a product.

In the case of Gems Corps, they looked inwards and made improvements to how the company is run.

Therefore,Gems Corps made use of Internal Analysis.

I hope my answer helps.

Goodluck

4 0
3 years ago
the fixed cost of producing wedding cakes is $10,000 per month. the variable cost for producing 10 wedding cakes per month is $1
Alex

The fixed cost of producing wedding cakes is <u>$10,000 </u>per month. The variable cost for producing 10 wedding cakes per month is <u>$12,000</u>. The average cost of producing 10 wedding cakes per month is <u>$2,200</u>.

The average fixed cost curve associated with a given level of output decreases as output expands. The total product produced by a firm for each level of output or unit of input used. Fixed costs include rent building or machinery. Variable costs are plant products water and seeds.

Fixed costs do not change as the firm changes levels of production. Rent price salary. Variable costs change according to the company's production volume. Fuel costs wage raw materials and parts. The cost of goods sold to trading companies directs materials direct labor costs variable components of manufacturing overheads sales and administrative expenses such as handling and shipping costs.

Learn more about Fixed costs here:- brainly.com/question/3636923

#SPJ4

8 0
11 months ago
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