Answer:
29,394 units
Explanation:
The formula for break even point is given as Fixed cost / Contribution margin.
Where;
Contribution margin = Sales per unit - Variable cost per unit
Given that ;
Fixed cost = $194,000
Unit selling price = $14.90
Unit variable cost = $8.30
Therefore;
BEP(units) = $194,000 / $14.90 - $8.30
= $194,000 / $6.6
= 29,394 units
Answer:
It will purchase at the local store at an economic cost of $123
Explanation:
Answer:
It will puchase the skirt across town as it has the less economic cost.
Explanation:
We are going to add up the opportunity cost (lost wages) to the cost of the skirt:
place travel-time Price Cost to travel Economic Cost
local store 30 $ 102.00 $ 21.00 <u> $ 123.00 </u>
across town 60 $ 85.00 $ 42.00 $ 127.00
neighboring city 120 $ 76.00 $ 84.00 $ 160.00
*travel-time we multiple the time it took each eway by 2
**The cost to travle will be Juanitas wages per hour ($42) times the travel-time/ 60
That's because the wages are express in hours and the travel time in minutes so we convert into hours
Then, the economic cost is the sum of the value of the skirt and the lost wages.
<em>Juanita, as a rational consumer will chose to purchase at the lower cost.</em>
Answer:
The correct answer is option e
e. Zero to $5,000
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project discounted at the required rate of return</em>
PV of cash inflows
= $15,600 × (1.15)^(-1) + ( $15,600× 1.15^(-2) + ($28,900 × 1.15^(-3) ($15,200 × 1.15^(-4)
=53,053.92
NPV =53,053.92-48,100
NPV =4,953.927
Answer:
E-travel-1.15
Pricecheck-0.38
Explanation:
Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.
Debt to equity=total liabilities/equity
E-Travel:
total liabilities is $2,854,475
total equity $2,482,681
debt-equity ratio=$2,854,475/$2,482,681=1.15
Debtholders provided more capital funding than the stockholders
Pricecheck:
total liabilities is $472,610
total equity is $1,257,614
debt-to-equity ratio=$472,610/$1,257,614 =0.38
Answer: b. (200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars)
Explanation:
The opportunity cost of an airplane is 50 cars. This means that if the number of planes produced were reduced by 50, the number of cars should increase by:
= 50 * 50
= 2,500 cars.
In option B, the airplanes were 200 and then reduced by 50 to 150. This led to an increase in cars of:
= 15,000 - 12,500
= 2,500 cars
Option B therefore satisfies the constraints and is correct.
