Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $327,030 / ( $630 - $300 )
Q = $327,030 / $330
Q = 991 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $630 - $300 = $330
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $327,030 / $330 = 991 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
Answer: (E) Satisficing
Explanation:
The satisficing is one of the type of satisfactory model that helps in understanding the various types circumstances that helps in creating the various types of decisions.
The satisficing is the process of performing the various types of strategies for achieving the desirable result and it basically explain the various types of behaviors of the decision process.
According to the given question, Gloria is using the satisficing model for the purpose of providing the satisfaction by choosing the best alternative.
Therefore, satisficing is the correct answer.
So, let us see the facts. The company needs to sell 67000 units throughout the year. We also need to have 15000 units in the storage so that we have 15000 in December. Hence, we need 82000 totally. But there are also 6000 already in storage. Hence we only need to produce 82000-6000=76000 units. If anything is unclear just comment.
Answer:
The correct option is B.
Explanation:
Emergency managers and planners are professionals, who are experts in the art of analyzing problems, making appropriate decisions and taking necessary actions that will solve the problems on ground.
The decision making process usually begin before the occurrence of emergency, this is called the planning stage. At this stage, an organization usually make decisions about how it is going to react to certain emergency situations that might occur in the future.
An effective and deliberate planning prior to emergency will greatly enhance the ability of the organization to respond effectively during emergency situations. The number and the size of decisions and problems that need to be addressed during an emergency situation depend largely on the quality of the decisions that were made (or were not made) during the planning process.
Answer:
31,500
Explanation:
Cost function, C (x) = 2 x + 4500
Revenue function, R (x) = 5 x
Profit = Total revenue - Total cost
= R(x) - C(x)
= 5 x - [2 x + 4500]
= 3 x - 4,500
If company sells 12,000 boxes, then profit will be:
= 3 x - 4,500
= 3(12,000) - 4,500
= 36,000 - 4,500
= 31,500
Therefore, 31,500 is the profit earn by the company by selling 12,000 boxes of cereal.
