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insens350 [35]
3 years ago
7

Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $2

3 per unit. The company’s monthly fixed expense is $9,500. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Business
1 answer:
Ket [755]3 years ago
3 0

Answer:

Results are below.

Explanation:

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 9,500 / (28 - 23)

Break-even point in units= 1,900 units

<u>To calculate the break-even point in dollars, we need to use the following formula:</u>

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)=  9,500 / (5 / 28)

Break-even point (dollars)= $53,200

<u>Finally, the fixed costs increase to $10,100:</u>

Break-even point in units= 10,100 / 5

Break-even point in units= 2,020 units

Break-even point (dollars)= 10,100 / (5/28)

Break-even point (dollars)= $56,560

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NISA [10]

Answer:

Related to Micro Economics : A, B, C, E.

Related to Macro Economics : D.

Explanation:

Micro Economics is the study of a single individual consumer, producer, industry. Eg - Price of a good

Macro Economics is the study of all consumers, producers, industries of the economy at a whole. Eg - General Price level.

Both Micro Economics and Macro Economics deal with aggregates. But:- Micro Economic aggregates have lower level of aggregation & are contextually less related to wide total, than Macro Economics.

<u>Micro Economics </u>: 'A student's decision about how to allocate his time between studying two subjects' ; 'A firm's decision on which production method to use' :- are related to single economic units.

'The effect of rent control on the housing market' ; 'The effect of externality on the quantity produced by the market' :-  are related  to only those particular industry markets & not to economy as a whole.

<u>Macro Economics </u>: 'The effect of an increase in income tax on national income' :- is an impact of country's government policy at its whole national income.

5 0
3 years ago
The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016, pizzas cost $10 eac
grin007 [14]

Answer:

decreased by 4.5%

Explanation:

A family consumes: 10 pizzas, 7 pairs of jeans, and 20 gallons of milk.

In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2016 is:

C_{2016} = 10*\$10 +7*\$40 +20*\$3\\C_{2016} = \$440

In 2017, pizzas cost $8 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2017 is:

C_{2017} = 10*\$8 +7*\$40 +20*\$3\\C_{2016} = \$420

The change, in percentage, of a typical family's cost of living is:

R=\frac{C_{2017}-C_{2016}}{C_{2016}} \\R=\frac{420-440}{440} \\R=0.045\ or\ 4.5\%

The cost of living decreased by 4.5%

5 0
3 years ago
Pat picked a card from a standard deck, looked at it, and then put it back. he then picked a second card. what is the probabilit
mezya [45]
16/52 maybe :) There are 52 card in the deck then the diamonds and jokers would make 16. Maybe I'm not really sure but maybe. Hope this helps!!
5 0
3 years ago
If the owner of a condominium defaults on his mortgage, the owners of the remaining units: become subject to foreclosure. must i
vladimir1956 [14]

Answer:

Are not affected by the defaulting owner’s actions

Explanation:

In this particular question, we are trying to see what becomes of the remaining owners of a condominium if the owner defaults on his mortgage.

To answer this question properly, we need to understand and know what is meant by a Condominium. A condominium generally refers to a a particular building or a building complex with a number of individually owned apartments.

After this definition, we can clearly see that a condominium exists independently of the other owners. This means if you own a Condominium, it practically means you’re responsible for whatever contract that defines your ownership and in no particular way have any business with the other independent owners of other units. This is so because, they have their own guiding laws to deal with. Hence, whatever happens, everyone would be made to give account on whatever part of the properties he own with absolutely no reference to the properties of the other members

7 0
3 years ago
A competitive firm currently produces and sells 500 units of output. Its total revenue is $3,500; the marginal cost of producing
Orlov [11]

Answer: Reduce output

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Therefore, profit maximization occurs therefore, profit maximization occurs at the most significant gap or the biggest difference between the total revenue and the total cost.

TC = AC×Q = $4×500 = $2,000

Theoretically, profit maximization occurs where MR = MC

From the forgoing, producing an extra unit will increase the cost of the company thereby reducing profit.

The company should reduced output to around 499 units or less

3 0
3 years ago
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