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shtirl [24]
3 years ago
11

Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $7,500. Assuming it

s selling price is $36.50 per unit and its variable costs per unit are $24, how many units must be sold to achieve its target given that total fixed costs are $60,000? Multiple Choice
a. 2,188
b. 1.439
c. 4,200
d. 1800
Business
1 answer:
alex41 [277]3 years ago
3 0

Answer:

c. 4,200 Units

Explanation:

The computation of units to be sold is shown below:-

For computing the units to be sold first we need to find out the Contribution Margin Per Unit and  Required Contribution Margin which is shown below:-

Contribution Margin Per Unit = Selling Price Per Unit - Variable Cost Per Unit

= $36.50 - $24

= $12.50

Required Contribution Margin = Fixed Cost + Required Profit ÷ Loss

= $60,000 - $7,500

= $52,500

Units to be sold to achieve the target = Required Contribution Margin ÷ Contribution Margin Per Unit

= $52,500 ÷ $12.50

= 4,200 Units

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3 years ago
What piece of U.S legislation acts as the primary authority on collective bargaining
kramer
The main body of law governing collective bargaining is the National Labor Relations Act (NLRA). It is also referred to as the Wagner Act. It explicitly grants employees the right to collectively bargain and join trade unions. The NLRA was originally enacted by Congress in 1935 under its power to regulate interstate commerce under the Commerce Clause in Article I, Section 8 of the U.S. Constitution. It applies to most private non-agricultural employees and employers engaged in some aspect of interstate commerce. Decisions and regulations of the National Labor Relations Board (NLRB), which was established by the NLRA, greatly supplement and define the provisions of the act.

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3 0
3 years ago
Sweet Treats common stock is currently priced at $36.72 a share. The company just paid $2.18 per share as its annual dividend. T
Phantasy [73]

Answer:

Cost of equity= 8.0%

Explanation:

<em>Cost of equity can be ascertained using the dividend valuation  model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.</em>

Cost of equity (Ke) =( Do( 1+g)/P )  + g

g - 2.2%, P - 36.72, D - 2.18

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= 0.07954 × 100

= 8.0%

 Cost of equity = 8.0%

4 0
3 years ago
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