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ankoles [38]
3 years ago
10

RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells

for $10 per unit. The break-even point in sales dollars is $_____________.
Business
1 answer:
Anni [7]3 years ago
5 0

Answer: $75000

Explanation:

In order to solve the question, firstly we need to calculate the contribution margin ratio which will be:

= ($10 - $6) / $10

= 40%

Then, the break even sales will then be:

= Fixed cost / Contribution margin ratio

= $30000 / 40%

= $75000

Therefore, the break-even point in sales dollars is $75000

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D’Souza Company sold 7,000 units of its product at a price of $86.00 per unit. Total variable cost is $51.20 per unit, consistin
Delicious77 [7]

Answer:

$255000

Explanation:

Please see attachment

6 0
3 years ago
When making a large purchase, you should avoid everything except _______________________
vivado [14]

Answer:

being robbed

Explanation:

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6 0
3 years ago
Which of the following statements is CORRECT? a. As a rule, the optimal capital structure is found by determining the debt-equit
givi [52]

Answer:

e. The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.

Explanation:

The optimal capital structure involves the combination of both debt and equity where debt is a type of loan which is needed to pay back in some years while the equity represents the ownership of the shareholder in the organization

So here the optimal capital structure represents the maximum stock price that minimizes the weighted average cost of capital

hence, the correct option is d.

4 0
4 years ago
The area of accounting that provides managers inside the organization with information they need to make decisions is called: a.
Murljashka [212]

Answer:

d. managerial accounting.

Explanation:

Managerial accounting -

It refers to the accounting practice , where identifying , interpreting , analysing and measuring the financial information to managers for the goals and target of the organisation , is referred to as managerial accounting.

It is different from the financial accounting .

Hence , from the given information of the question,

The correct term is d. managerial accounting .

4 0
3 years ago
"Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company
White raven [17]

Answer: cost plus approach

                                   

Explanation:  In simple words, it refers to a pricing strategy under which the producing firm adds up a predetermined specific margin to the total cost to compute the selling price.

This approach is considered to be less troubling as it is easy to ascertain the selling price and also it makes accounts recording  and book keeping more effective and simple.

Usually such method is used for Procrustes that are sold to the final customers in single piece and not in a batch for example - a soap, a chocolate etc. other commodities such as computer parts etc are generally not priced according to this strategy.  

8 0
3 years ago
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