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Rashid [163]
2 years ago
15

Management at the Flagstaff Company currently sells its products for $250 per unit and is contemplating a 40% increase in the se

lling price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $120,000 per year. If fixed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven
Business
1 answer:
elena-s [515]2 years ago
8 0

Answer:

393 units will need to be sold to breakeven

Explanation:

Break even point is the point where a Company makes neither makes a profit nor a loss.

Step 1 : Calculate new variables

New Sales = $250 x 1.40 = $350

Variable Costs = $250 x 30 % = $75

New Fixed Costs = $120,000 x 90 % = $108,000

Step 2 : Break even (units)

Break even (units) = Fixed Costs ÷ Contribution per unit

                               = $108,000 ÷ ($350 - $75)

                               = 393 units

Thus, 393 units will need to be sold to breakeven

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e. Short-term debt securities such as Treasury bills and commercial paper.

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<h3>What is the B2B partnership?</h3>
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Therefore, part of the new strategy to save the company was to establish B2B partnerships with companies such as 7-Eleven and Fiat, in order to tap into the robust reseller market.

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Average revenue is known to be the one that depicts how much revenue exist  per unit of the output.

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Note therefore, that if the three objectives in the retail store are meant, the store will have a lot of customers.

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2 years ago
The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue sh
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Whenever a license is required to offer certain kinds of services, this will tend to __________ the supply of the service provid
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If demand stays the same, but supply is reduced, then, the equilibrum price will be higher, because consumers cannot obtain as much of the good as they wish, and therefore, have to pay more for it.

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