answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frozen [14]
2 years ago
8

Grand Gimmicks Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fix

ed costs per month average $6,240. Management is considering increasing the selling price to $190 per unit. Assume that the cost of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price. At the proposed increased selling price of $190 per unit, what dollar volume of sales per month is required to break-even? (Rounded)
Business
2 answers:
kobusy [5.1K]2 years ago
8 0

Answer:

Break Even Sales Volume in Dollars=  $ 19500

Explanation:

Break Even Sales Volume in Dollars= Fixed Costs/ Contribution Margin Ratio

Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)

Break Even Sales Volume in Units = Fixed Costs/ Contribution Margin per Unit

Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)

Break Even Sales Volume in Dollars= $6,240/1-(130/190)

Break Even Sales Volume in Dollars= $6,240/1-0.68

Break Even Sales Volume in Dollars= $6,240/0.32

Break Even Sales Volume in Dollars= $ 19500

FinnZ [79.3K]2 years ago
8 0

Answer:

$19,760

Explanation:

The Net/operating income is the difference between the total sales and total costs, Total cost is made up of the fixed and variable cost.

Like the total sales, the total variable cost is also affected by the level of activities or units produced/sold.

Mathematically,

Net income = Total sales - variable cost - fixed cost

At breakeven point, the net income is zero as the total sales is equal to the total cost.

Let the number of units to be sold to break even be b

190b - 130b - $6,240 = 0

60b = $6,240

b = 6240/60

= 104 units

Dollar volume of sales per month is required to break-even

= 104 * 190

= $19,760

You might be interested in
Consider a two-server parallel queuing system where customers arrive according to a poisson process with rate λ, and where the s
lara31 [8.8K]
<span>I would assume that customers arrive at the queue according to the poisson process, and then decide whether to enter the queue or leave as per the rules in the question. for (a) I interpret "enter the system" as "join the queue". The expected time for this will be E(time until there is a free slot) + E(time for someone to arrive once a slot is free). Noting that the additional time taken for someone to arrive once a spot is free is independant of the time that the slot became free (memorylessness property of poisson process) The waiting time of a Poisson(\lambda) is exp(\lambda) with mean \frac{1}{\lambda} E(\text{Time someone enters the system})=\frac{1}{2\mu} + \frac{1}{\lambda} Your post suggests you already understand where \frac{1}{2\mu} comes from.</span>
7 0
2 years ago
La) State clearly 1 consumer need which is met by "Canadian Living" magazine. Be careful to remember that needs are "states of d
ella [17]

Answer:

<u>Need to perform everyday tasks like cooking.</u>

Explanation:

For example, Canadian Living magazines has a record of often publishing articles related to new cooking recipes that are cheap and affordable.

Many consumers often need information that can help that can assist them in cooking nutritional foods at the best price possible.

7 0
2 years ago
Considere que a empresa vale dos lirios Ltda, recebeu por meio de caixa, o valor registrado an conta de clientes referente a ven
Maksim231197 [3]

Responda:

Por favor, verifique a explicação

Explicação:

O método de dupla entrada simplesmente se refere a um princípio contábil em que cada transação realizada tem um registro duplo, ou seja, se uma operação de crédito é realizada, o débito correspondente é registrado, da mesma forma, quando ocorre um débito, o lançamento a crédito correspondente também é registrado ao lado.

No cenário acima, a entrada de débito do ativo adquirido pelo cliente à vista de R 3.400 enquanto a vale Lirios Ltda é creditada com o dinheiro recebido na venda de seu ativo.

Ativo Caixa R $ 3.400 - - - - Débito

vale Lirios Ltda (ativo) R $ 3.400 - - - crédito

7 0
2 years ago
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors and 5% are informed traders.
mojhsa [17]

Answer: a. 11.5%

Explanation:

Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.

Using the Capital Asset Pricing Model to calculate expected return.

Er = Rf + b( Rm - Rf)

Er = Expected return

Rf = Risk Free Rate

b = Beta

Rm = Market Return.

The Expected Return for the Informed Investors is,

= 4% + 1.4 ( 10% - 4%)

= 4% + 1.4 ( 6%)

= 12.4%

With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.

3 0
2 years ago
You have a job at a real-estate agency in the small country of Dystopia, where you are paid 72,000 marks (the currency of Dystop
slamgirl [31]

Answer:

The total amount you pay in social insurance taxes on your second job is 2,914.65 couches

Explanation:

The computation of the total amount paid is shown below:

= (Total income - paid amount) × Social insurance tax rate

= ($110,100 - $72,000) × 7.65%

= 2,914.65 couches

We simply have taken the difference between the total amount and the paid amount and then multiply it with the social insurance tax rate

All other information is not relevant. Hence, ignored it

8 0
2 years ago
Other questions:
  • Support this statement using complete sentences: “Constructive criticism is offered in a way that encourages growth and learning
    6·1 answer
  • Stone and brick are substitutes in home construction. Consider the market for bricks depicted below. Suppose the price of stone
    9·2 answers
  • Common unsponsored domain name extensions include:<br> .com<br> .org<br> jobs<br> .mobi
    13·1 answer
  • Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishi
    14·1 answer
  • Annette's team has been able to meet the production target of 20,000 units per year. In the next financial year, Annette sets a
    12·1 answer
  • Guillen, Inc. began work on a $7,000,000 contract in 2020 to construct an office building. Guillen uses the completed-contract m
    11·1 answer
  • Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing
    7·2 answers
  • The COB Division of Northern Corp. produces and sells a product to both external customers and other Northern divisions. Per-uni
    15·1 answer
  • How are the three economic conditions (Growing, Stable, and Declining) called in the Decision Table?
    14·1 answer
  • If your friend Raheem asks you, “What type of account should I use to save for retirement,” what would you tell him?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!