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icang [17]
2 years ago
9

Sheridan Company has two divisions—Standard and Premium. Each division has hundreds of different types of tennis racquets and te

nnis products. The following information is available: (Round answer to 0 decimal places, e.g. 5,275.) Standard Division Premium Division Total Sales $300000 $700000 $1000000 Variable costs $210000 420000 Contribution margin $90000 $280000 Total fixed costs $300000 What is the break-even point in dollars? a. $500000.
b. $810811.
c. $1304348.
d. $111000.
Business
1 answer:
natita [175]2 years ago
3 0

Answer:

Break-even point in dollars is b) 810,811

Explanation:

Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.

It is calculated with the fixed cost divided to the porcentage of contribution margin.

step 1: % of contribution margin

CMg/total sales

($90,000+$280,000)/$1,000,000=0.37 %CMg

Step 2: Break-even point

FC/%CMg

$300,000/0.37=$810,811

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Sarah is planning a party at a party hall. The meal option is $50 per person and includes the hall for free. The hall-only optio
Tomtit [17]

Answer:

meal option  is cheaper with total cost = $2000 and hall only option is total cost  $2700

Explanation:

given data

The meal option = $50 per person.

Hall free = $ 0 per person

total guest = 40

hall-only option = $1,500

external caterer = $30 per person

solution

when we go for meal option than hall free so total cost will be as

total cost = total guest  × $50 per person

total cost = 40 × $50

total cost = $2000

and

when we go for hall only option than total cost will be

total cost = total guest   × external caterer charge + hall-only option

total cost =  40  × $30 + $1500

total cost =   $2700

so

meal option  is cheaper with total cost = $2000 and hall only option is total cost  $2700

4 0
2 years ago
You and two partners start a company. However, your partners play no role in running the company. You spend all your time managi
GalinKa [24]

Answer:

The correct answer is letter "D": Opportunity cost.

Explanation:

Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left  behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.

4 0
2 years ago
Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is
Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0
2 years ago
Peppercorn Inc. has outstanding nonconvertible preferred stock​ (cumulative) that pays a quarterly dividend of​ $1.00. If your r
Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = <u>Quarterly dividend</u>

                                      Quarterly required rate of return

                                   = $1.00

                                       0.08

                                   = $12.5      

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

5 0
2 years ago
Claire is 25 years old. She owns an editorial services firm. The average age of her employees is 30. Claire prefers to hire new
Grace [21]

Answer:

In the given scenario, the age discrimination that Claire displays could be because she believes that:

B) older workers are not interested in learning new things.

Explanation:

A manager is someone who controls and manages the resources in a company, firm or an organization. A major management role is the hiring of new employees. Employees form the backbone of any company, the type of employees that constitute an organization are always determine if the business will be a success or a failure. Hiring employees should be taken very seriously to ensure that their qualities are in line with the organizations goals and ambitions.

In the case above, Claire who owns an editorial services firms uses age discrimination criteria to hire her employees. This is evident by the fact that the average age of her employees is 30, meaning they are still considered youths since they are under below 35 years of age. Most managers like Claire use such tactics in hiring due to their personal beliefs. Some age discrimination hiring strategies are used because the hiring managers feel like older workers are usually not interested in learning new things.

5 0
2 years ago
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