Look at the pic. Help me pls.

Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling

katrin2010 [14]

Answer:

$20,000

Explanation:

Break-even sales is the point of sales at which the business incur no profit no loss. At this level of sale the business covers all of the variable and fixed cost associated with the product. Break-even is expressed in sales volume and sales value terms.

Current Selling Price = $70

As we know

Sales price = Variable cost + Contribution margin

Sales price = Variable cost ratio + Contribution margin ratio

100% = 40% + Contribution

Contribution = 100% - 40% = 60%

Fixed Cost = $12,000 Per month

Break-even sales = Fixed Cost / Contribution margin ratio

Break-even sales = $12,000 / 60% = $20,000

4 0

3 years ago

tock has had returns of 16 percent, 23 percent, 15 percent, −11 percent, 30 percent, and −5 percent over the last six years. Wha

elena-14-01-66 [18.8K]

Answer: arithmetic Average Return =11.33%

Geometric Average Return=10.33%

Explanation:

Returns per year

Year 1 16%

year 2 23%

year 3 15

year 4 -11%

year 5 30 %

year 6 -5%

Total = 68%

Arithmetic Average = Total returns 0f ( year 1 -6) / number of years

= 68%/6 =11.33%

Geometric Average Return is given as

= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1

((1 + 16%) × (1 + (23%)) × (1 + 15%) x (1+ -11%) x (1+30%) x (1+ -5%))^1/6 - 1

((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x (0.95)) ^1/6

((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x 0.95)) ^1/6 -1

(1.8035073 )^1/6 - 1

= 1.10328 -1 = 0.10328 x 100 = 10.328% =10.33%

3 0

3 years ago

Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They

Minchanka [31]

Answer:

PV of 1st option = $185,015.50

PV of 2nd option = $192,683.78

Explanation:

Computing the present value of the monthly payments, we use the formula $PV = \frac{A(1-(1+r)^{-n}) }{r}$

Where PV = present value of the monthly payments

A = monthly salary

r = monthly interest rate = 6%/12 = 0.5% = 0.005

n = number of months = 24 months

PV of the 1st option, $8,200 monthly for the next 2 year

$PV = \frac{8,200(1-(1.005)^{-24}) }{0.005}$ = $185,015.50.

PV of the 2ns option, $6,900 monthly + $37,000 signing bonus

$PV = \frac{6,900(1-(1.005)^{-24}) }{0.005}+37,000$ = $155,683.78 + $37,000 = $192,683.78.

7 0

3 years ago

Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schengen's management has cont

Julli [10]

Answer:

Volume variance $1,320 Favorable

Explanation:

The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit.

Standard fixed overhead cost per unit = $11×6 = 116

Units

Budgeted units 375

Actual units 395

Volume variance 20

Standard fixed overhead cost × $66

Volume variance  $1,320 Favorable

3 0

4 years ago

According to Brynjolfsson and McAfee (2014), Tyler Cowen think that information and communication technology is not a general pu

Elena L [17]

Answer:

False

Explanation:

According to these philosophers, these integrated systems have lowered the cost of the products and this lower cost has enabled companies to quote lower prices to win greater revenues from increased number of sales.

8 0

3 years ago