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nika2105 [10]
3 years ago
10

Globe Travel Agency sells Spring Break trips to University of Houston undergraduate students. The fixed cost of Globe is $100,00

0 and its variable cost is $400 for every student who takes the trip Globe offers. The price elasticity of demand is -2.5 at all levels of price. At present, the price of the trip is $600/student and, at this price, demand is 1200 units. Assume that the number of trips sold always equals demand.
Required:
Compute the breakeven quantity at current price, P =$600.
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

the breakeven quantity at current price is 500 units

Explanation:

The computation of the  breakeven quantity at current price is shown below:

Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)

= $100,000 ÷ ($600 - $400)

 = 500 units

Hence, the breakeven quantity at current price is 500 units

We simply used the above formula so that the correct units could arrive

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When TOMS first introduced their shoes, they created a shoe that was extremely simple and cheap to produce. But the firm made a
kati45 [8]

Answer:C. social economic

Explanation:Social economic phylosophy is the kind of phylosophy,that deals or considers the society in making Economic decisions.

Some companies apply this kind of phylosophy as a management Objective to help to better the life of its consumers as it aims to make profits.

The action of TOMS are social economic Business phylosophy,it made cheap shoes and gave free shoe for every purchase,this will reduce the cost of purchasing shoes and make it affordable evn as the company makes profit.

5 0
3 years ago
Read 2 more answers
ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machine
maria [59]

Answer:

400; 800

Explanation:

Contribution:

Product X:

= Selling price - Variable cost

= 100 - 70

= 30,

Product Y:

= Selling price - Variable cost

= 80 - 40

= 40,

Product Z:

= Selling price - Variable cost

= 25 - 20

= 5

Machine hours required :

Product X:

= Machine time per unit × Monthly demand

= 3 ×  300

= 900,

Product Y:

= Machine time per unit × Monthly demand

= 2 × 200

= 400,

Product Z:

= Machine time per unit × Monthly demand

= 1 × 500

= 500

Contribution per machine hour:

Product X = Contribution ÷ Machine time per unit

                 = 30 ÷ 3

                 = 10,

Product Y = Contribution ÷ Machine time per unit

                 = 40 ÷ 2

                 = 20,

Product Z = Contribution ÷ Machine time per unit

                = 5 ÷ 1

                = 5

It is highest for Y, so produce maximum amount of Y, then X and then Z

Y needs 400 hrs, we are left with 800 hours, so produce 800 hours of X.

3 0
3 years ago
John occasionally borrows the car of his friend, Sophie. Sophie has a PAP with liability limits of 100/300/50. John also has a P
Tamiku [17]

Answer:

Sophie's policy will pay up to its maximum amount of $100,000 and John's policy should pay the rest ($200,000).

Explanation:

Personal Auto Policies (PAP) provide coverage in case of injury to the insured or other third parties involved in a car accident. PAP policies provide coverage even when you occasional borrow a car. If you regularly drive someone else's car you need extended non owned liability coverage endorsement.

3 0
3 years ago
The 2016 financial statements of CVS Health Corporation reported the following information (in millions): 2016 2015 Net sales $1
Serggg [28]

Answer:

option (D) 10.34

Explanation:

The  inventory turnover ratio for 2016 will be given as:

= [Cost of goods sold ] ÷ Average inventory

also,

Cost of goods sold in 2016 = $148,669

Average inventory = [ 2015 inventory + 2016 inventory ] ÷ 2

= [ 14,001 + 14,760 ] ÷ 2

= 28761 ÷ 2

= 14,380.5

Therefore,

The  inventory turnover ratio for 2016 = $148,669 ÷ 14,380.5

= 10.34

Hence,

The answer is option (D) 10.34

8 0
3 years ago
Net Income of $10,000,000 Increase in Accounts Payable of $800,000 Increase in Accounts Receivable of $600,000 Depreciation of $
Viefleur [7K]

Answer:

Cash flow generated from operating activities <em>12,010,000</em>

Explanation:

10,000.000

+1,600,000

Adjusted Net Income 11,600,000

↑AR -600,000

↓Inventory 100,000

↑AP   800,000

Change in working capial 300,000

Other adjustment 110,000

Cash flow generated from operating activities 12,010,000

4 0
3 years ago
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