Answer:
e) $4,651
Explanation:
The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.
It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.
Working it out
Break-point in sales = Total General fixed cost/ Contribution margin ratio
Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.
CMR = contribution/sales
Fixed cost = Contribution + net loss
We can now apply all these relationships to the question given:
Fixed cost = 1720 + 280
= 4,000
Contribution margin ratio = 1720/400 = 43%
Break-even sales ($) = 4000/0.43
= $4,651
Answer:
I DONT NEED IT I DONT NEED IT I NEEEED ITTTTTTTT
4. 48 Hours
We create at least 5 exabytes of data every 2 days. This is contributed by images, emails, social media, and all other internet content.
Answer:
D) The demand for cheap pizza will decrease because demand for cheap pizza is negative related to income.
As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased
