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3 years ago

LO 3.3When sales price decreases and all other variables are held constant, the break-even point will ________.

Business

1 answer:

miss Akunina [59]3 years ago

3 0

Answer:

increase

Explanation:

Break-even point is used to determine the minimum number of units a business needs to sell in order to fully cover the fixed costs. The break-even formula is below;

Break-even = Fixed cost / (Sale price - Variable cost)

If sales price (SP) decreases while keeping other factors; variable cost(VC) and fixed cost(FC) constant, the denominator amount will be smaller, making the break- even point to increase.

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During 2018, TRC Corporation has the following inventory transactions.

Soloha48 [4]

Answer:

Results are below.

Explanation:

Giving the following information:

Jan. 1 Beginning inventory 48 $40 $1,920

Apr. 7 Purchase 128 42 5,376

Jul. 16 Purchase 198 45 8,910

Oct. 6 Purchase 108 46 4,968

For the entire year, the company sells 427 units of inventory for $58 each.

Ending inventory units= 482 - 427= 55

1)

Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units remaining in inventory.

Ending inventory= 55*46= $2,530

COGS= 48*40 + 128*42 + 198*45 + 53*46= $18,644

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,644= $6,122

2)

Under the LIFO (last-in, first-out) method, the ending inventory is calculated using the cost of the firsts units remaining in inventory.

Ending inventory= 48*40 + 7*42= $2,214

COGS= 108*46 + 198*45 + 121*42= $18,960

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,960= $5,806

3)

First, we need to calculate the weighted-average cost:

weighted-average cost= (40 + 42 + 45 + 46) / 4= $43.25

Ending inventory= 55*43.25= $2,378.75

COGS= 427*43.25= $18,467.75

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,467.75= $6,298.25

6 0

2 years ago

A ____ calculator allows you to calculate the monthly payments on a house you are looking to buy.

Len [333]

The answer is a Mortgage Calculator.

3 0

3 years ago

15) You are

Bingel [31]

Answer:

Only going to dept for things you really need and have planned for

6 0

1 year ago

Which one of the following positions would have salaries or wages that are classified as a factory overhead cost by a baking com

frutty [35]

Answer:

Out of the following positions, the position of the factory supervisor would have a salary or wage that is classified as a factory overhead cost by a baking company.

Explanation:

For a baking factory, professionals like a baker, a salesman, or the president of the company are mandatory to have.
The need for a factory supervisor arises only if it is devised or felt that the employees would not work properly if they are not monitored.
If such a need is not felt anymore, the salary of the factory supervisor would be considered as an overhead cost by the company.

7 0

3 years ago

What effect do rising input costs have on the price of a good.

Genrish500 [490]

Answer:

Explanation:

Inputs are the factors required for production to take place. They may include labor and raw materials. In economics, inputs are the four factors of production that include land, labor, entrepreneurship, and capital.

The final cost of a product is dependent on the costs of production. The cost of production is an aggregation of the cost of each input used in the production. For a company to stay in operation, it must meet all its production costs. These costs are spread to each unit produced. A high production cost will result in an expensive product. Should the cost of any of the input increase, then the overall cost of the products will rise.

4 0

3 years ago