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mixer [17]
2 years ago
14

Last month Carlos Company had a $60,000 profit on sales of $300,000. Fixed costs are $120,000 a month. What sales revenue is nee

ded for Carlos to break even? A. $420,000 B. $200,000 C. $360,000 D. $240,000
Business
1 answer:
Fittoniya [83]2 years ago
6 0

Answer:

B. $200,000

Explanation:

Contribution margin = Fixed costs + Profit

Contribution margin = $120,000 + $60,000

Contribution margin = $180,000

Contribution margin ratio = Contribution margin/Sales

Contribution margin ratio= $180,000/$300,000

Contribution margin ratio = 60%

Break-even sales revenue = Fixed costs/Contribution margin ratio

Break-even sales revenue = $120,000/60%

Break-even sales revenue = $200,000

Hence, $200,000 is the sales revenue needed for Carlos to break even

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You invest $3,500 at 10% compounded annually for 3 years. How much will your investment be worth in 3 years
aniked [119]

Answer:

Your total balance after 3 years would be $4,658.5 with a total compounded interest of $1,158.5

5 0
2 years ago
Suppose that the inverse demand equation is p​ = 100 minus 2Q and the supply equation is p​ = 2Q. If the price is controlled at
Irina18 [472]

Answer: P =$50

Q= 25

Explanation: P= 100-2Q

P= 2Q

To get the quantity supplied Q, we have to educate both equations

100-2Q=2Q, 100=2Q+2Q

100=4Q, Q=100/4 , Q=25

To get the equilibrium price we have to substitute the value of Q which is 25 into any of the equation.

Using equation 1

P=100-2Q, P=100-2(25)

P=100-50, P=$50.

If the price is controlled at $60, then the production pays the producer this is because a commodity is not expected to be sold at the equilibrium price, price flooring is a way that government or a group control the market price of a commodity or produce by imposing a particular price on it. This is to ensure that the producers are not at loss with their production, a price floor is always higher than the equilibrium price to be effective as seen in the example given above, price floor is $60 while equilibrium price is $50.

An example of a price floor for services can be seen in the minimum wage stated by the government this is to ensure that people's services are not misused anyhow.

Price flooring most times can lead to surplus quantity produced if consumers are not willing to pay the price, because the producer will be wiling to produce more in order to make more profit.

4 0
3 years ago
What is the safest way to dispose of old bank account statements?
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Soaking the documents in water after tearing them up words well, burning them is less safe, but is the safest for your records, always tear or shred them no matter what
7 0
3 years ago
Cookies by casey has sales of $487,000 with costs of $263,000. interest expense is $26,000 and depreciation is $42,000. the tax
Ber [7]

The net income of Cookies by casey is $123,240

What is net income?

The net income of the company is the excess of its sales revenue over all costs of the running the business, which includes, the costs of sale, interest expense, depreciation as well as the taxes payable to the government authority which is 21% of profits before tax in this case.

Profit before tax=sales-costs of sale-depreciation-interest expense

sales=$487,000

costs of sale=$263,000

depreciation=$42,000

interest expense=$26,000

profit before tax=$487,000-$263,000-$42,000-$26,000

profit before tax=$156,000

tax rate=21%

net income=profit before tax*(1-tax rate)

net income=$156,000*(1-21%)

net income=$123,240

Find out more about net income on:https://brainly.ph/question/2444259

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8 0
1 year ago
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