Answer:
1,500 units; 1,000 units
Explanation:
Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit
Fixed cost = $160,000
Sales Mix = 60% of X + 40% of Y
= 0.6X + 0.4Y
So,
Contribution Margin of the Mix:
= (60% × contribution margin of X) + (40% × contribution margin of Y
)
Contribution Margin of the Mix per unit:
= (60% × 80) + (40% × 40)
= 48 + 16
= $64
Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit
= 160,000 ÷ 64
= 2,500 unit
At the Level of break even
:
Unit of X at break-even:
= 60% of 2,500
= 1,500 units
Unit of Y at break-even:
= 40% of 2,500
= 1,000 units
Answer:
D) 75
Explanation:
Our initial production function is:
q = 305X - 2X²
we calculate the derivative of q:
(q') = 305 - 4X
MP = 305 - 4X
$10 / $2 = 305 - 4X
5 = 305 - 4X
4X = 305 - 5 = 300
x = 300 / 4
x = 75
Answer:
Effect on income= $8,000 increase
Explanation:
Giving the following information:
Variable costs are $0.60 per unit
3M Company has contacted Kansas Company about purchasing 20,000 units at $1.00 each.
<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:</u>
Effect on income= 20,000*(1 - 0.6)= $8,000 increase
<span>This action of Elias is based on the expectancy theory. The expectancy theory is based on motivating people through expectations. In order to maximize the effort that an individual is willing to give, you must provide some sort of motivation. Here, Elias has provided motivation in the form of monthly awards. This will give the employees more incentive to perform.</span>