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melomori [17]
3 years ago
7

Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 42 cents per mil

e. Aldo estimates that his fixed costs per year—such as taxes, insurance, and depreciation—are $2,200. The direct or variable costs—such as gas, oil, and maintenance—average about 17.0 cents per mile. How many miles must he drive to break even? (Do not round intermediate calculations. Roundup your answer to the next whole number.)
Business
1 answer:
geniusboy [140]3 years ago
8 0

Answer:

Break even in miles = 8800 miles per year

Explanation:

The break even in units is the number of units that must be sold in order for the total revenue to be enough to cover total costs or in order for the total revenue to be equal to the total costs.

In the given scenario, the units are miles driven and the break even in units will be the number of miles to be driven to cover total costs.

The formula for break even in units is as follows,

Break even in units = Fixed costs / Contribution margin per units

Where,

Contribution margin per units =  Revenue per unit - Variable cost per unit

Contribution margin per units = 0.42 - 0.17

Contribution margin per units = $0.25 per mile

Break even in miles = 2200 / 0.25

Break even in miles = 8800 miles per year

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6 0
3 years ago
A person with a poor self-concept is more likely to be hired for a position, because they are easier to “mould”.
Charra [1.4K]

Answer:

False.

Explanation:

Self-concept describes the kind of person or personality an individual thinks he or she has.

People that have a realistic self-concept about themselves basically see themselves as they are, not what they or the society at large wants them to be.

The statement that a person with a poor self-concept is more likely to be hired for a position, because they are easier to “mould” is false and an absolutely incorrect notion.

First of all, no organization is interested in hiring an individual with a poor self-concept because they can't add any value to the organization in the long-run.

6 0
4 years ago
Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry
Fantom [35]

Answer:

A

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0
4 years ago
Act II Costumes currently has $120,000 in cash, $340,000 in inventory, and $20,000 in accounts receivable. The company also has
Len [333]

Answer:

Quick ratio = Current assets - Inventory/Current liabilities

= $480,000 - $340,000/$40,000

= 3.5

Current assets = $120,000 + $340,000 + $20,000 = $480,000

Current liabilities = $20,000 + $20,000 = $40,000

Explanation:

Explanation: Quick ratio is the ratio of liquid assets to current liabilities. Liquid assets are current assets less inventory. Liquid assets amounted to $140,000 while current liabilities are $40,000. The division of liquid assets by current liabilities gives quick ratio.                                                                                                                      

5 0
3 years ago
Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio?
ipn [44]

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.

The basic DuPont Analysis is;

Return on Equity = \frac{Net Income}{Revenue} * \frac{Sales}{Total Assets}  * \frac{Total Assets}{Equity}

Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.

5 0
3 years ago
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