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Andrews [41]
3 years ago
5

Sibila, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering

the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units?
a. It will remain unchanged
b. It will decrease.
c. It will increase.
d. It cannot be determined from the information provided.
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

c. It will increase.

Explanation:

Break even point is the level of activity at which a firm neither makes a profit nor a loss.

<em>Break - even units = Fixed Costs ÷ Contribution per unit </em>

therefore,

<u>Existing break-even point in units :</u>

Break - even units = $16,000 ÷ ($40 - $18) = 727.27 or 728 units

<u>New break-even point in units :</u>

Break - even units = $21,000 ÷ ($40 - $16) = 875 units

Conclusion :

The results show that break-even point in units will increase from 728 units to  875 units as a result of the changes

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Anna35 [415]

Answer:

Annual payment= $3,250.77

Explanation:

Giving the following information:

You are thinking of purchasing a home. The house costs $300,000. You have $43,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 6% per year.

FV= 300,000 - 43,000= $257,000

i=6%

n= 30

Annual payment= ?

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (257,000*0.06)/{[1.06^30]-1}= $3,250.77

3 0
4 years ago
The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assume that operating costs (excluding depreci
mestny [16]

Answer:

The answer is  $11.904.762  

There an assumption about Depreciation, Amortization and Interest, it says increase by 10% over which there is no data to calculate,so It's used 10% of sales.

Explanation:

Income Statement  

Sales  $11.904.762  

Cost of goods sold -$6.547.619  

Gross Profit  $5.357.143  

depreciation, amortization and Interest -$1.190.476  

Net Income BEFORE Taxes $4.166.667  

Tax RATE 40%  -$1.666.667  

Net Income after Taxes  $2.500.000  

7 0
3 years ago
Recent evidence suggests that in addition to its role a sensory integration and relay station _____ plays a key role in regulati
pickupchik [31]

The thalamus is a sensory integration and relay station that recent studies have shown to play a role in regulating levels of awareness.

3 0
3 years ago
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the te
zhuklara [117]

Answer:

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

Explanation:

Then alpha should produce only 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour.

If Alpha produces oranges there will be a loss because he produces less oranges. But Beta 's choice will not affect the trade.

There are no incentives for Beta to specialize and trade with Alpha.

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

4 0
3 years ago
Because transit tends to be congested in this country, many people prefer to shop in their local neighborhoods. They tend to go
marta [7]

Answer: A few large flagship stores located in big cities; High-end pricing( Option A and D)

Explanation:

Because the people in this country usually shop close to their home, it would not be wise for a business to opt for few large flagship stores rather than a larger number of the smaller stores.

It would also be unwise for such business to sell mainly high-end products because the shoppers are used to good deals and haggling. Such company would be smart, to sell the products individually, because bulk purchases would make little sense for people that make frequent trips to the store.

Also, in a country with a congested transportation, an easy-to-access store locations will be important and having product experts on the floor who answers the questions of customers’ would appeal to network-oriented local culture.

3 0
3 years ago
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