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Leviafan [203]
3 years ago
14

Break-Even Sales and Sales to Realize Income from Operations For the current year ended October 31, Friedman Company expects fix

ed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380. a. Compute the anticipated break-even sales (units). fill in the blank 1 units b. Compute the sales (units) required to realize income from operations of $2,405,000. fill in the blank 2 units
Business
1 answer:
Blizzard [7]3 years ago
8 0

Answer:

Part a

110,000 units

Part b

128,500 units

Explanation:

Break even sales is the level at which a firm makes neither a profit nor a loss.

Break-even (sales) = Fixed Costs ÷ Contribution per unit

where,

Fixed Costs = $14,300,000

Contribution per unit = Sales - Variable Costs

                                     = $380 - $250

                                     = $130

therefore,

Break-even (sales) = $14,300,000 ÷ $130 = 110,000 units

Units to reach Target Profit = (Target Profit + Fixed Costs) ÷ Contribution per unit

                                                = ($2,405,000 + $14,300,000) ÷ $130

                                                = $16,705,000 ÷ $130

                                                = 128,500 units

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Answer:

The correct answer is d) Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Explanation:

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The shareholder, on the other hand, is also an investor, since he contributes capital with a view to obtaining a dividend.

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You are planning to make monthly deposits of $500 into a retirement account that pays 6 percent interest compounded monthly. If
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Answer:

$995,745

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Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from o
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