All categories

2 years ago

Break-Even Point

Business

1 answer:

11111nata11111 [884]2 years ago

5 0

Answer:

The right answer is:

(a) 5916 units

(b) 5046 units

Explanation:

Given:

Sales,

= $59

Variable cost,

= $30

Fixed cost,

= $171,564

Increased sale,

= $64

Now,

(a)

Contribution margin will be:

= $Sales - Variable \ cost$

= $59-30$

= $29 \ per \ unit$ ($)

hence,

Breakeven will be:

= $\frac{Fixed \ cost}{Contribution \ margin}$

= $\frac{171564}{29}$

= $5916 \ units$

(b)

Contribution margin will be:

= $Sales-Variable \ cost$

= $64-30$

= $34 \ per \ unit$ ($)

hence,

Breakeven will be:

= $\frac{Fixed \ cost}{Contribution \ margin}$

= $\frac{171564}{34}$

= $5046 \ units$

You might be interested in

Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the strai

ElenaW [278]

Answer:

Explanation:

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.

8 0

3 years ago

If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to m

Yanka [14]

Answer:A. government regulators and taxpayers.

Explanation: Insurance premium is the amount of money initially paid by an organisation which can be a profit making Organisation or non profit making Organisation or an individual before the start of an insurance policy.

An actuarially fair level is the compensation level that is commensurate with the premium of the policy holder.

IF THE INSURANCE PREMIUM IS TO BE SET BELOW THE ACTUARIALLY FAIR LEVEL THE GOVERNMENT AND TAX PAYERS WILL BE EXPECTED TO PAY THE FOR THE DIFFERENCE.

4 0

3 years ago

A partnership intentionally created and recognized, orally or in writing is known as a(n) _____ partnership.

quester [9]

A partnership intentionally created and recognized, orally or in writing is known as a express partnership.
hope this helps!

8 0

3 years ago

Suppose that the market demand curve for bean sprouts is given by P = 1,660 - 4Q, where P is the price and Q is total industry o

a_sh-v [17]

Answer:

In equilibrium, total output by the two firms will be option e= 300.

Q = $q_{1}$ + $q_{2}$

Q = 100 + 200

Q = 300

Explanation:

Data Given:

Market Demand Curve = P = 1660-4Q

where, P = price and Q = total industry output

Each firm's marginal cost = $60 per unit of output

So, we know that Q = $q_{1}$ + $q_{2}$

where $q_{}$ being the individual firm output.

Solution:

P = 1660-4Q

P = 1660- 4( $q_{1}$ + $q_{2}$ )

P = 1660 - 4 $q_{1}$ - 4 $q_{2}$

Including the marginal cost of firm 1 and multiplying the whole equation by $q_{1}$

Let's suppose new equation is X

X = 1660 $q_{1}$ - 4 $q_{1} ^{2}$ - 4 $q_{1}$ $q_{2}$ - 60 $q_{1}$

Taking the derivative w.r.t to $q_{1}$ , we will get:

$X^{'}$ = 1660 - 8 $q_{1}$ - 4 $q_{2}$ - 60 = 0

Making rearrangements into the equation:

8 $q_{1}$ + $q_{2}$ = 1660 - 60

8 $q_{1}$ + $q_{2}$ = 1600

Dividing the whole equation by 4

2 $q_{1}$ + $q_{2}$ = 400

Solving for $q_{1}$

2 $q_{1}$ = 400 - $q_{2}$

$q_{1}$ = 200 - 0.5 $q_{2}$

Including the marginal cost of firm 1 and multiplying the whole equation by $q_{2}$

P = 1660 - 4 $q_{1}$ - 4 $q_{2}$

Let's suppose new equation is Y

Y = 1660 $q_{2}$ - 4 $q_{1}$ $q_{2}$ -4 $q_{2} ^{2}$ - 60 $q_{2}$

Pugging in the value of $q_{1}$

Y = 1660 $q_{2}$ - 4 $q_{2}$ (200 - 0.5 $q_{2}$ ) -4 $q_{2} ^{2}$ - 60 $q_{2}$

Y = 1660 $q_{2}$ - 800 $q_{2}$ +2 $q_{2} ^{2}$ -4 $q_{2} ^{2}$ - 60 $q_{2}$

Y = 1600 $q_{2}$ - 800 $q_{2}$ -2 $q_{2} ^{2}$

Taking the derivative w.r.t $q_{2}$

$Y^{'}$ = 1600 - 800 - 4 $q_{2}$ = 0

Solving for $q_{2}$

4 $q_{2}$ = 800

$q_{2}$ = 200

$q_{1}$ = 200 - 0.5 $q_{2}$

Plugging in the value of $q_{2}$ to get the value of $q_{1}$

$q_{1}$ = 200 - 0.5 (200)

$q_{1}$ = 200 - 100

$q_{1}$ = 100

Q = $q_{1}$ + $q_{2}$

Q = 100 + 200

Q = 300

Hence, in equilibrium, total output by the two firms will be option

e= 300.

5 0

3 years ago

Which of the following statements about ticket scalping is correct? Multiple Choice

hjlf

Answer:

B. Scalping tends to be prevalent when there is a shortage of tickets.

Explanation:

Ticket scalping -

It is the method of buying the tickets of any event or show and then selling them at a much higher price to another person , is known as the process of ticket scalping .

It is an illegitimate practice .

Hence , during the shortage of ticket , the process of ticket scalping is increased .

Hence , the correct statement regarding Ticket scalping , is ( B. ) .

7 0

3 years ago