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Strike441 [17]
3 years ago
13

In 2019, Bonita Industries sold 3000 units at $1000 each. Variable expenses were $700 per unit, and fixed expenses were $780000.

The same variable expenses per unit and fixed expenses are expected for 2020. If Bonita cuts selling price by 4%, what is Bonita’s break-even point in units for 2020?
Business
1 answer:
solniwko [45]3 years ago
8 0

Answer:

Bonita’s break-even point in units for 2020 is 812.50 units.

Explanation:

Break-even point in units refers to the number of units of commodity that must sold by a company in order for its cost to be equal to revenue and therefore make no profit but also no loss. This can be determined for Bonita Industries as follows:

Selling price in 2020 = Selling price in 2019 * (100% - Percentage cut in selling price) = $1,000 * (100% - 40%) = $1,000 * 96% = $960

Variable expenses = $700

Fixed expenses = $780,000

Contribution per unit = Selling price in 2020 - Variable expenses = $960 - $700 = $260

Bonita’s break-even point in units for 2020 = Fixed expenses / Contribution per unit = $780,000 / $960 = 812.50 units

Therefore, Bonita’s break-even point in units for 2020 is 812.50 units.

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a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

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Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

8 0
3 years ago
Adler Company is considering developing a new product. The company has gathered the following information on this product. Expec
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Answer:

markup 200% over cost

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Explanation:

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6 0
3 years ago
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$4,355.26  

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5 0
2 years ago
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4 0
2 years ago
Read 2 more answers
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