To break even, the total cost must be equal to the total revenue. The cost elements are the fixed and variable cost. The variable cost is dependent on the level of activities.

Let the number of units required to breakeven be g

cost = sale

30g + 240,000 = 36g

36g - 30g = 240000

6g = 240000

g = 40000

The company must produce and sell 40000 units to break even.

3 0

4 years ago

What word does<br> this pattern spell?<br> g у

My name is Ann [436]

The answer is ‘beg’. Since line notes (starting from the bottom and going up on the treble clef) are E G B D F. And the space notes () are F A C E

7 0

4 years ago

Read 2 more answers

Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provid

tigry1 [53]

Answer:

The correct answer is the option A: Margin of safety ratio.

Explanation:

To begin with, the name of <em>"Margin of Safety"</em>, in the field of business and accounting, is refered to a ratio whose main purpose is to establish the point in where the company knows that it has to sale obligately due to the fact that at that point the company can be sure that they have covered the fixed costs of it and after that point every sale will became a profit for the company. So that is why that this ratio indicates the percentage of each sales dollar that is available to cover those costs.

8 0

3 years ago

a-1. Annual payment of $1,025 for 11 years at 4% interest. (Do not round intermediate calculations. Round your answer to 2 decim

Karo-lina-s [1.5K]

Answer:

a-1// 8,979.49

a-2// 9613.14

b-1// 5,154.36

b-2// 4,676.51

Explanation:

We will calculate each present value using the formula for present value of an ordinary annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

a-1

C 1,025

time 11

rate 0.04

$1025 \times \frac{1-(1+0.04)^{-11} }{0.04} = PV\\$

PV $8,979.4886

a-2

C 825

time 16

rate 0.04

$825 \times \frac{1-(1+0.04)^{-16} }{0.04} = PV\\$

PV $9,613.1439

b-1

C 1,025

time 11

rate 0.16

$1025 \times \frac{1-(1+0.16)^{-11} }{0.16} = PV\\$

PV $5,154.3605

b-2

C 825

time 16

rate 0.16

$825 \times \frac{1-(1+0.16)^{-16} }{0.16} = PV\\$

PV $4,676.5098

6 0

3 years ago