Answer:
the contribution margin per unit is $5.75 per unit
Explanation:
The computation of the contribution margin per unit is shown below:
The Contribution margin per unit is
Contribution margin per unit= Contribution margin ÷ Sales units
= ($69,000 - $46,000 ) ÷ 4,000
= $5.75 per unit
Hence, the contribution margin per unit is $5.75 per unit
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Budgeted sales= $86,140
Explanation:
Giving the following information:
A July sales forecast projects that 7,300 units are going to be sold at a price of $11.80 per unit.
<u>The budgeted sales are calculated by multiplying the sales in units with the selling price per unit:</u>
Budgeted sales= 7,300*11.8= $86,140
Market Economy system does not contain provisions for taking care of people in the event they are not able to take care of themselves.
A marketplace economic system is an financial machine wherein two forces, known as supply and call for direct the production of products and offerings. marketplace economies aren't managed with the aid of a central authority like a government and are instead primarily based on voluntary change.
In a Centrally planned economic system, also called a command economy, the crucial government controls the factors of manufacturing and solutions the three simple economic questions for all of society. two systems frequently stated while centrally deliberate economies are mentioned are socialism and communism.
Learn more about market economy here
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Answer: reduce output.
Explanation:
In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).
In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.
Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.
We are given
fixed cost, F = $6,660,000
sales mix:
65% sporting goods
35% sports gear
margin ratio:
30% sporting goods
50% sports gear
Now, we solve for the break even point in dollars. We use the formula
x = total fixed cost / [ price - total variable cost/price ]
Using the given values
x = 6660000 / [0.65(0.3)(6660000) + .35(0.5)(660000)]/ [(0.3)(6660000) + (0.5)(660000)]
x = $14,400,000
The breakeven point is $14,400,000
This is the sales when the revenue is just equal to the total cost of producing the products resulting to zero profit.
