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Ulleksa [173]
3 years ago
9

Walters Corporation sells radios for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling pr

ice. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:_____. a. 26,250.b. 26,000.c. 25,750.d. 21,000.
Business
1 answer:
Ede4ka [16]3 years ago
8 0

Answer:

b. 26,000 units

Explanation:

We will calculate break even point as;

Break even point = Fixed expenses ÷ Contribution margin per unit

Where,

Fixed costs = $525,000 + $125,000 = $650,000

Also, Contribution margin per unit = Selling price per unit - Variable expense per unit

Selling price per unit = $50

Variable expense per unit

= 50% × $50

= $25

Contribution margin per unit

= $50 - $25

= $25

Therefore, the break even point in units

= $650,000 ÷ $25

= 26,000 units

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In many organizations, marketing does not have a place of importance in the organizational hierarchy. Why do you think this happ
WARRIOR [948]

Answer:

The correct answer is a combination of factors and is explained below.

Explanation:

On the one hand, the marketing area inside the companies tend to be left apart or not given much of the attention that they actual need inside the organization and that is<u> due to the fact that the business' owner or even the managers sometimes thinks that there is a major importance in the finances of the enterprise or even in the production and its current quality</u>.

On the other hand, the marketing function inside an organization should be taking care as much as the other functions due to the fact that it has a very huge importance in the selling process of the company and therefore in its number of sales during an amount of time. Moreover, those companies that do not focus so much effort in the marketing will probably have a great product with a good quality but <u>they would not acquire a big number of sales because they would not know how to sell the product and to whom</u>, furthermore they would <u>find themselves selling much less that does companies that have a simple product but a good marketing mix</u>.

5 0
3 years ago
In what classification of consumer products would you consider dominos pizza? Why?
jasenka [17]

Domino's pizza is classified as convinence products.

<h3>What are continence products?</h3>

Convinence products are products or items consumer buys frequently or consistent and at instant without much effort applied into it or minimum effort.

Therefore, Domino's pizza is classified as convinence products because it does not require much effort to get them and it is frequently purchased by consumers.

Learn more about convinence products here.

brainly.com/question/4414292

8 0
2 years ago
With a​ downward-sloping demand​ curve, average revenue is equal to price A. because the firm must lower its price to sell addit
tia_tia [17]

Answer:

D. ​Actually, average revenue is always equal to​ price, whether demand is downward sloping or no

Explanation:

This is because Average revenue is the amount of revenue that is obtained by selling an addition unit of output. This additional revenue is always = Price as proven by the equation below,

Total Revenue = Price * Quantity

Thus, AR = Total Revenue / Quantity  

Input elements of the Total revenue we get,

AR = Price * Quantity / Quantity

AR = Price  

Hope that helps.

3 0
3 years ago
Allison invested $23,000 in an account paying an interest rate of 6.7% compounded annually. Assuming no deposits or withdrawals
Vadim26 [7]

Answer:

18 years

Explanation:

Given that;

P= $23,000

A= $76,300

r= 6.7%

From

A = P(1 + r/100)^n

76,300 = 23,000 (1 + 0.067)^n

3.3 = (1.067)^n

Taking logarithm of both sides

log 3.3 = log (1.067)^n

log 3.3 = nlog(1.067)

n= log 3.3/log 1.067

n= 0.5185/0.0282

n= 18 years ( to the nearest year)

8 0
3 years ago
This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa
allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

Explanation:

As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0
3 years ago
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