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FromTheMoon [43]
3 years ago
9

Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $63,000 per

year, and the company must sell 9,000 units to break even. If the company has a target profit of $17,500, sales in units must be:
Business
1 answer:
pshichka [43]3 years ago
3 0

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

180,000 - 63,000= 9,000x

117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

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Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

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Answer:

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Explanation:

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Answer:

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