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2 years ago

A company has total fixed costs of $180,000 and a contribution margin ratio of 30%. How much sales are necessary to break even?

Business

1 answer:

svet-max [94.6K]2 years ago

3 0

Answer:

b) $600,000

Explanation:

The break-even sales can be regarded as sales value in which the result makes the firm to report zero profit.

Total fixed costs was given from the question as ( $180,000)

The Contribution margin ratio was give from the question as ( 30%)= 0.3

✓break even point can be calculated as ratio of Total fixed costs to Contribution margin ratio. This can be expressed as

break even point=[Total fixed costs ]/ [ Contribution margin ratio.]

Substitute,

break even point= [ $180,000]/ [0.3]

=$600,000

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Keith and Dena Diem have personal property coverage with a $250 limit on currency, a $1,000 limit on jewelry, and a $2,500

netineya [11]

Answer:

Total Claim = $2416

Explanation:

The coverage on the currency = $250

The coverage on the jewelry = $1000

The limit on the gold, pewter, and silver = $2500

The amount that is stolen:

The amount of cash = $270

The worth of jewelry = $1734

Pewterware = $1666

The miximum coverage = 250 + 1000 + 2500 = $3750

Actual loss = 270 + 1734 + 1666 = $3670

Reimbursement amount = 250 + 1000 + 1666 = $2916

Total Claim = Total Amount Covered – Deductible

Total Claim = $2916 - $500 = $2416

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3 years ago

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

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2 years ago

Analyze how taxes or emissions standards could reduce the economic inefficiency that arises in a competitive market with a negat

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Let's analyze in the case of manufacturer's emission that cause polution

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This is really inefficient , if they have to repair it, why allow them to destroy the environment in the first place ?

That's how emission standards could reduce the inefficiency

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3 years ago

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Yanka [14]

Bonds are actually a type of borrowing or loans most businesses and governments use. They represents an alternative to the common bank loans, however they enable loan of higher amounts of money, that governments need but ordinary banks are not able to provide.

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2 years ago

Read 2 more answers

One truth about using color in magazine advertising is?

Volgvan

Answer:

The correct answer is letter "A": Color ads are considered better suited for attracting and holding attention.

Explanation:

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As magazines are published periodically it is important that the advertisement displayed captures the attention of the audience. To do so, magazines tend to use color promotions where readers can see the products being promoted more detailed than by just displaying them in black and white.

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2 years ago