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Verdich [7]
2 years ago
14

The manager at Vertical Wire Productions reported total sales revenue of $800,000. The variable expenses were $600,000, and ther

e were $125,000 of total fixed expenses. Use the contribution margin shortcut formula to predict the breakeven point in dollars.
Business
1 answer:
Brilliant_brown [7]2 years ago
5 0

Answer:

BEP_{dollars} = 500,000

Explanation:

<u>The first step</u> will be  get the contribtuion margin:

Sales\: Revenue - Variable \:Cost = Contribution \:Margin

800,000 - 6000,000 = 200,000

This is the amount after variables cost used to pay the fixed cost and make a gain.

Second, we calcualte the contribution margin ratio

\frac{Contribution \:Margin}{Sales\: Revenue} = Contribution\: Margin\: Ratio

200,000/800,000 = 0.25

Per dollar of sales 25 cents are available to pay the fixed cost.

Now, we calculate the break even point in dollars

\frac{Fixed\:Cost}{Contribution\: Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{125,000}{.025} = 500,000

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Answer:

$154,900

Explanation:

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= $154,900

8 0
1 year ago
Telly, age 38, has a $125,800 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so h
algol13

Answer: $125,800

Explanation:

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1 year ago
William McChesney Martin, who served as Chairman of the Federal Reserve in the 1950s and 1960s, is famous for saying that centra
laiz [17]

Answer:

PART A

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PART B

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(2) it can lead to reduced Productivity within the economy.

Explanation:Central banks all over the world are known to put incentives and Stimulus factors in place in order to help improve, resuscitate or sustain the economy in terms of crisis, but the impacts of the Incentives or Stimulus programs of the central banks can lead to certain negative consequences if not effectively monitored or removed when necessary.

SOME OF THE NEGATIVE CONSEQUENCES WHICH CAN ARISE IF THE INCENTIVES OR STIMULUS PROGRAMS USED TO SUSTAIN THE ECONOMY ARE NIT REMOVED EXAMPLES INCLUDE IT CAN LEAD TO INFLATION,IT CAN LEAD TO REDUCTION IN THE OVERALL PRODUCTIVITY WITHIN THE ECONOMY ETC.

3 0
1 year ago
If a foreign government hires an American consulting firm to help the country's textile industry improve production operations,
Anna71 [15]

Answer:

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False

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1 year ago
Diego owns and operates a small business with only four full-time employees and less than $700,000 in annual sales. He currently
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Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.

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