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Solnce55 [7]
2 years ago
10

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to

earn $35,000 pretax income, how many units must be sold? A. 6,500 B. 6,000 C. 500 D. 5,000 E. 5,500
Business
1 answer:
ruslelena [56]2 years ago
6 0

Answer:

A 6,500

Explanation:

The number of units to be sold is calculated as;

= (Pretax income + Fixed costs) ÷ Contribution margin

Given that;

Pretax income = $35,000

Fixed costs = $420,000

Contribution margin

= Selling price per unit - Variable cost per unit

= $200 - $130

= $70

= ($35,000 + $420,000) ÷ $70

= 6,500 units

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jeka57 [31]

Answer and Explanation: From the following given case/scenario, we can state that , GoGo motors is trying to recombining and redeploying existing core competencies in order to compete with the other firms present in the industry in the upcoming future markets.  Since, the company has already realized that there is a vast growing demand for green automobiles and thus it has created a new market opportunity.

8 0
3 years ago
A truck costs $ 303 comma 000 and is expected to be driven 114 comma 000 miles during its fiveminusyear life. Residual value is
Anika [276]

Answer:

$90,900

Explanation:

Cost of truck = $303,000

Expected millage = 114,000 miles

Residual value = 0

Millage cover in first year = 34,000 miles

Depreciation is the systematic allocation of cost to an asset based on usage.

The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year

=  (34,000/114,000) × 303,000

= 0.30 × 303,000 (intermediate calculations rounded to two decimal​ places)

= $90,900 (to the nearest dollar)

7 0
3 years ago
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
Lostsunrise [7]

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
  • When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
  • The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
  • Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

To learn more about lineage, refer to:

brainly.com/question/18939014

#SPJ4

7 0
1 year ago
Moonburst is a newly launched brand of energy drinks, one among many other recently introduced competing brands. The advertising
masha68 [24]

Answer: Advertising seeks to appeal to a mass audience with a uniform message.

Explanation:

3 0
3 years ago
Theresa​ Corporation, which manufactures​ baskets, is developing direct labor standards. The basic direct labor rate is​ $21.00
wel

Answer:

Standard rate per direct labor hour is $27.1

Explanation:

Standard rate per direct labor hour includes the hourly pay rate, Payroll taxes and fringe benefits. For Theresa Corporation,

We have given that

Basic direct labor rate is $21.00 per hour

Payroll Taxes is 10% of basic direct labor rate i.e. 10% of $21.00 = $2.10 per hour

Fringe Benefits is $4.00 per hour.

So Standard rate per direct labor hour = $21.00 + $2.10 + $4.00 = $27.1

4 0
3 years ago
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