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Simora [160]
3 years ago
12

Bob sells cookies only in packages of 5.

Business
1 answer:
nexus9112 [7]3 years ago
3 0

Answer:

2000 units

Explanation:

We apply the contribution margin concept in solving this.

The selling price is $5

The $1000 overhead cost represents fixed costs.

The $2.50 material cost is the variable cost.

The salary of $4000 is like profits.

Bob has to sell x items to meet the break-even and attain $4000

Break-even = Fixed cost/ contribution margin per unit

fixed cost =$1000

contribution margin = Selling price - variable cost

=$5 -$ 2.50

=$2.50

break-even in units = $1000/2.50

=400 units

To achievea $ 4000 salary , Bob has to sell 400 units + $4000/2.50

=400 unit +1600 units

=2000 units

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Explanation:

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Answer:

a.

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b.

Please look at attachment

C .

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Explanation:

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Answer:

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Explanation:

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