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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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A common size analysis requires the representation of financial statement data relative to a single financial statement item (or
MArishka [77]

Answer:

The correct answer is letter "C": Total assets.

Explanation:

Total assets represent the total amount of assets that an individual or entity possesses to obtain a return from them. In accounting, it is obtained by subtracting the previous period total assets minus the current period total assets. They appear in the Balance Sheet of a company and is the baseline or common base item to which other line items are expressed.

7 0
3 years ago
Why is a high level of subsistence agriculture a characteristic of less developed countries?
slava [35]
<span>The answer is C. It means that more people are unemployed or underemployed. Subsistence Agriculture means that the farmers only grow enough food to feed their families. They don't grow extra food to sell. This is a sign of a less developed country, because the family members are using their time and resources to care for themselves and are not working outside of the home. Therefore they will be unemployed or underemployed.</span>
5 0
3 years ago
Read 2 more answers
In the short run or in shorter time periods supply curves tend to:_______
svlad2 [7]

Answer:

b) be more inelastic than supply curves that apply to longer periods of time.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply. In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.

In the short run or in shorter time periods supply curves tend to be more inelastic than supply curves that apply to longer periods of time.

This ultimately implies that, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price), in the short run.

However, in the long-run or in longer time periods, supply curves tend to be fairly elastic than supply curves that apply to shorter periods of time.

3 0
3 years ago
Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even at this level of sales. Fixed expen
Doss [256]

The company's variable expenses per unit is 1.25

<h3>What is breakeven?</h3>

Breakeven is a point at which neither profit nor loss is made. It is used to determine the number of units or dollars of revenue needed to cover total costs.

Number of units to sell = 100,000

Price per unit = 2

Fixed expense = 75000

At break even point :

Revenue = total expenses

Total expenses

= fixed cost + variable cost

Let variable cost = x

Revenue

= units to sell * price per unit

Revenue

= 100,000 * 2

= 200,000

Hence,

Fixed cost + variable cost = Revenue

75000 + x = 200,000

x = 200, 000 - 75000

x = 125,000

Variable cost = 125,000

The variable expense per unit is thus :

Variable expense / number of units

= 125,000 / 100,000

= 1.25 per unit

Hence, the company's variable expenses per unit is 1.25

Learn more about break even here: brainly.com/question/9212451

7 0
2 years ago
Which of the following statements is true of feature appeals?
Ivanshal [37]

Answer:

A. They present attributes that can be the basis of rational purchase decisions

Explanation:

A Feature appeal is an advertisement appeal that stimulate consumer's mindset towards buying a product or service provided by a company. It is therefore important that the company gets it right. Feature appeal appeal highlights the attributes of the product to influence consumers into making a purchase and is common in high-involvement products.

6 0
3 years ago
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