For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is:

Answers

Answer 1

Answer:

Break even in units = 5000 units

Explanation:

Break even quantity or break even in units is the quantity of units that must be sold in order for the company to break even. Break even is a situation where the total revenue of the business equals its total costs and there is a situation of no profit and no loss.

The formula to calculate break even quantity is,

Break even in units = Fixed costs / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = 2 - 1.6  =  $0.4

Break even in units = 2000 / 0.4

Break even in units = 5000 units


Related Questions

what does ip address mean??

Answers

Answer:

It is where you live and more stuff I forgot

A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question?

Answers

Answer:

There are several ways in which corporations are valued, one of them is the dividend discount model, and the most common is the discounted cash flow model. When a corporation doesn't pay dividends, it can invest that money in future or existing projects, which will eventually increase the corporation's net income. Remember that $1 distributed to shareholders is $1 less that can be invested.

Of course stockholders love dividends, but a firm that pays a really high dividend payout ratio will not grow. Sooner or later that will ultimately hurt the corporation and jeopardize its future. The higher the dividend payout ratio, the lower a corporations sustainable growth rate.

Which type of work would include providing advice to managers on how to reduce the organization's costs?
OA public relations manager
B. management analyst
OC. marketing researcher
OD
H.R. manager

Answers

Answer:

B. management analyst

Explanation:

A management analyst helps an organization by seeking ways to increase revenue, reduce costs, and become more profitable. They study an organization's design, systems, and procedures and advise management on improving efficiency. Management analysts or management consultants work as private consultants. However, some large organizations employ them. Management analysts regularly work in the business field.

Answer:

B. management analyst

Explanation:

The real risk-free rate is 3.05%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, i.e., if averaging is required, use the arithmetic average, what is the equilibrium rate of return on a 1-year Treasury bond? - Google Search

Answers

Answer:

6.65%

Explanation:

Real risk-free rate = 3.05% (r*)

Expected inflation = 3.60% (IP)

Maturity risk premium = zero

1-year bond yield = r* + IP

1-year bond yield = 3.05% + 3.60%

1-year bond yield = 6.65%

Hence, the equilibrium rate of return on a 1-year Treasury bond is 6.65%

Camille Keegan sells lamps for $92.10 that cost her $62.00. What is Camille's percent markup based on the selling price? (Round to nearest hundredth percent.)

Answers

Answer:

Mark-up= 0.4859 = 48.59%

Explanation:

Giving the following information:

Camille Keegan sells lamps for $92.10 that cost her $62.00.

To calculate the mark-up, we need to use the following formula:

Mark-up= (selling price/unitary cost) - 1

Mark-up= (92.1/62) - 1

Mark-up= 0.4859 = 48.59%

Bendel Incorporated has an operating leverage of 5.8. If the company's sales increase by 12%, its net operating income should increase by about:_________

Answers

Answer:

69.60 %

Explanation:

Degree of Operating Leverage shows the times Earnings Before Interest and Tax (EBIT) will change as a result of a change in sales contribution. Increases of sales of 12% will lead to increase in EBITof 69.60 % (12% × 5.8).

It takes precisely 3 cooks, C, and 5 units of food, F. to produce a single Five course meal. The price of a cook is 100 and the price of food is 50 per unit of food. Determine both the production function and the cost function.

Answers

Answer:

the production function always follows this pattern: Q = K + L

Q = quantity of output

K = quantity of capital

L = quantity of labor

in this case, since you need 3 cooks and 5 units of food to prepare 5 meals, the production function is:

M = 3C + 5F

where;

M = five course meal

C = cooks

F = units of food

the cost function always follows this pattern: C = FC + VC

C = total production cost

FC = fixed costs

VC = variable costs

since the price of a cook is 100 per cook and the price of food is 50 per food unit, the production cost function is:

M = 100L + 50F

where:

C = production cost of a course meal

L = number of cooks required

F = units of food required

C = ($100 x 3) + ($50 x 5) = $550

in this case we were only given variable costs, so this cost function does not include any fixed costs.

ABC's current dividend is $5 and has an annual growth rate of 6%. What would be the current price of a share of ABC stock if investors require 20% rate of return

Answers

Answer:

$37.86

Explanation:

Calculation for the current price of the share

Using this formula

Current price=D1/(Required return-Growth rate)

Let plug in the formula

Current price=(5*1.06)/(0.2-0.06)

Current price=5.3/0.14

Current price=$37.86

Therefore the current price of the share will be

$37.86

Orange Company developed a patent internally for its own benefit. It incurred research and development costs totaling $12 million, and legal and filing fees costs paid to a law firm to secure the patent, totaling $2 million. What amount can Orange capitalize as the cost of the patent

Answers

Answer:

Orange Company

The amount which Orange Company can capitalize as the cost of the patent is $2 million.

Explanation:

a) Data and Calculations:

Research and development costs of patent = $12 million

Legal fees for securing the patent = $2 million

Total cost of patent = $14 million ($12 million + $2 million)

Allowable capitalization cost = $2 million

b) Capitalization cost of patent:

Only the legal fees that are incurred to register or defend an internally developed patent are allowed for capitalization.  The research and development costs of an internally developed patent cannot be capitalized, but they are expensed as incurred.  However, Orange Company can capitalize the cost of acquired patent and its legal fees.

In 2020, a company receives advance payments from its customers. The company will deliver the products in 2021. At the end of 2020, the company will __________ related to this transaction (enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset

2. record a deferred tax liability

3. have a permanent difference

4. report no difference between financial income and taxable income for 2020.

Answers

Answer:

In 2020, a company receives advance payments from its customers. The company will deliver the products in 2021. At the end of 2020, the company will ____1______ related to this transaction (enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset

Explanation:

For having paid income tax in 2020 on the cash received for deferred revenue, the company will record a deferred tax asset.  This deferred tax asset will then be offset in 2021 when the sales revenue will be recorded according to the financial income accounting.  Deferred tax asset arises from the overpayment or advance payment of taxes.  The opposite of a deferred tax asset is called a deferred tax liability, representing income tax owed, which will be settled in the coming years.

You manage an equity fund with an expected risk premium of 11.4% and a standard deviation of 28%. The rate on Treasury bills is 5.2%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)

Answers

Answer:

The Expected return of the Portfolio is 8.05% and the standard deviation is 7%

Explanation:

The computation is shown below:

Given that

T-bill rate or risk-free rate = 5.20%

The Expected Risk premium of fund = 11.40%

As we know that

Expected Return of Equity = Risk premium + Risk free rate

= 11.4%+5.2%

= 16.60%

Now  

Weight of equity fund is

= $50,000 ÷ ($50,000 + $150,000)

= 0.25

And,  

Weight of T-bills is

= $150,000 ÷ ($50,000 + $150,000)

= 0.75

Also the correlation between risk free and the fund would always be zero  

The Standard deviation of Equity fund= 28%

ANd, the Standard deviation of T-bills= 0

Now

Expected return Portfolio = (weight of fund × expected return) + (weight of risk free × rate of return)

= (0.25 × 16.60%) + (0.75 × 5.2%)

= 8.05%

And,

The standard deviation of the portfolio (σp) is

= √(wA × standard deviation of A )^2 + (wB × standard deviation of B ) ^2 + (2 × wA × wB × standard deviation of A  ×standard deviation of A ×  rBM)

= √((0.25 × 28%)^2 + (0.75 × 0%)^2 + (2 × 0.25 × 0.75 × 28% × 0% × 0))

= 7.00%

Hence, the Expected return of the Portfolio is 8.05% and the standard deviation is 7%

A company offers bonds at a discount price of $800 for a 4% $1,000 bond that matures in 20 years with a dividend payable semi annually. What is the closest effective interest rate per year, compounded semiannually

Answers

Answer:

5.69 %

Explanation:

The Interest rate on this Bond is its Yield to Maturity (YTM) and is calculated as  :

PV = - $800

PMT = ($1,000 × 4%) ÷  2 = $20

N = 20 × 2 = 40

P / Yr = 2

FV = $1,000

YTM = ?

Using a financial calculator to input the data as above, the Yield to Maturity on this Bond is 5.6870% or 5.69 %

I need help with the operation management assignment plz

Answers

The answer should be 250 on edg2020

In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to:_______

a. behavior of non-buyers.
b. competitors’ misfortunes.
c. other providers in the marketplace.
d. customer satisfaction levels.

Answers

Answer:

c. other providers in the marketplace.

Explanation:

SWOT analysis can be defined as a strategic technique which is used by organizations to plan through the identification of its strength, weakness, opportunities and threats in relation to its business.

The internal environment of an organization such as employees, policies, management and culture offers an organization strength.

In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to other providers in the marketplace. This ultimately implies that, when its close rivals in the same industry or market are not coordinated, organized, effective and efficient in their provisions of goods and services, it gives the organization a competitive advantage (strength) over them. Thus, an organization should always ensure that it uses the weakness of other providers in the marketplace as its own strength to achieve excellence.

Jacob purchased business equipment for $56,000 in 2017 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2020 for $26,000. What is the amount and character of Jacob's gain or loss

Answers

Answer:

Ordinary gain = $5,000

Explanation:

Given:

Purchase price of equipment = $56,000

Regular MACRS depreciation = $35,000

Sales price = $26,000

Find:

Gain/Loss

Computation:

Current price of equipment = $56,000 - $35,000

Current price of equipment = $21,000

Ordinary gain = $26,000 - $21,000

Ordinary gain = $5,000

Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($18,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $121,000 of salary, $10,600 of long-term capital gains, $3,600 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct

Answers

Answer:

The loss that could be deducted is $7,400

Explanation:

The computation of the amount of loss deducted is shown below:

Total income of Michelle is

= $121,000 + $10,600 + $3,600

= $135,200

Exemption amount is $25,000

Modified gross income i.e. adjusted is $100,000

The phase amount would be

= ($135,200 - $100,000) × 0.5

= $17,600

So, the loss would be

= $25,000 - $17,600

= $7,400

Hence, the loss that could be deducted is $7,400

Insurance offers consumers

A. protection from the costs of unplanned events.
B. a guarantee that a business will succeed.
C. income to help start a new business venture.
D. full reimbursement after business setbacks.

Answers

I think answer it’s A umm I was confused by c but I think the right one it’s A

Insurance is a means of protection that offers financial, medical and many sorts of supports at the time of need. The insurance can range from car to loan to many multiple things.

Hence its  a sort of protection for the unknown costs and protects us from unknown events.

Hence the option A is correct.

Learn more about the insurance offers consumers.

brainly.com/question/21254501.

Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6 % 0 % Market 10.8 24 A 8.8 13 a. Calculate the Sharpe ratios for the market portfolio and portfolio

Answers

Answer:

Sharpe ratio of market portfolio = 0.2

Sharpe ratio of market portfolio = 0.2154

Explanation:

Calculation for the Sharpe ratios for the market portfolio and portfolio A

Market portfolio

Using this formula

Sharpe ratio of market portfolio = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation

Let plug in the formula

Sharpe ratio of market portfolio= (10.8 - 6)/24

Sharpe ratio of market portfolio=4.8/24

Sharpe ratio of market portfolio = 0.2

Portfolio A

Using this formula

Sharpe ratio of portfolio A = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation

Let plug in the formula

Sharpe ratio of portfolio A= (8.8 - 6)/13

Sharpe ratio of portfolio A=2.8/14

Sharpe ratio of portfolio A= 0.2154

Therefore the Sharpe ratios for the market portfolio is 0.2 and portfolio A is 0.2154

What is NOT a financing activity? Question options: Purchase of common stock. Purchase of treasury stock. Sale of an investment. Issuance of bonds.

Answers

Answer:

What is NOT a financing activity?

Sale of an investment.

Explanation:

The sale of an investment by Company A is an investing activity.  When the company purchases its own common stock or treasury stock, it is a financing activity.  The issuance of bonds is also a financing activity.  This leaves the sale of investment as the only investing activity.  The Statement of Cash Flows is usually classified into three main categories.  They are the operating activities, the investing activities, and the financing activities.  There are also the non-cash flow activities.

Why do buyers and sellers voluntarily work together?​

Answers

Answer:

The principle of voluntary exchange is based on consumers and producers acting in their self-interest. A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange. For example: Both parties, you and the consumers, are better off because of the exchange.

Answer:

Sellers need buyers to make a profit. If sellers create goods and services that the buyer will need or want, they will buy it resulting in profit for the seller.

Which of the following statements is not good advice for prioritizing your spending? A. First determine your needs and wants. B. Use your "want money" on little everyday purchases rather than on big purchases. C. Focus on spending your "want money" on things that will improve your quality of life. D. Don't use your "want money" on things that are "flashy" but don't really have much value.

Answers

B. Use your “want money” on little everyday purchases

Answer:

B

Explanation:

Phoenix Financial Ltd. has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $25 price? Assume this transaction has no effect on total market value.

Answers

Answer:

Phoenix Financial Ltd.

For one new share to achieve the $25 price, 50 of the old shares must be given up.

Explanation:

a) Data and Calculations:

Current stock price = $0.50

Reverse stock split to get the price up to a more "reasonable" level = $25 per share

To calculate the number of shares to be give up $25/$0.50 = 50 shares

b) Reverse stock split takes place when the company wants to shore up the per unit stock price. It consolidates the number of existing shares of stock into fewer, proportionally more valuable and reasonable, share price per unit. There are many reasons for reducing the outstanding shares.  It may be that the company is facing some financial distress.  Or in this case, management may want "to get the price up to a more reasonable level."

Which of these are examples of securities? Check all that apply.
a certificate representing ownership of a corn harvest
a bar of gold stored in an investor's home
a stack of lumber stored at an investor's warehouse
a stock
a bond

Answers

Answer:

a certificate representing ownership of a corn harvest

a stock

a bond

Explanation:

did it on edg

A certificate representing ownership of a corn harvest, a stock, or a bond. is this correct according to the question.  

What is Corn Harvesting?

Because freshly picked corn is a delight and tastes far better than corn from the grocery store, gardeners are ready to invest their time and garden space in cultivating it. When the corn is at its absolute best, harvest it. If left alone for too long, the kernels get hard and starchy.

One of the most crucial aspects of a quality crop is knowing when to harvest the corn. About 20 days after the silk first develops, corn is ready for harvest. The husks are still green during harvest time while the silk goes brown.

Early in the morning is the finest time to harvest corn. Pull down while holding the ear firmly, then twist and pull. Usually, it is simple to remove from the stalk. For the first few days, only harvest what you can consume in a day, but be careful to gather the entire crop while it is still in the milky stage.

To learn more about Corn Harvesting follow the link.

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A company called and redeemed a $500,000, 7% bond issue at 98. If the unamortized discount is $4,000, the entry will include a:________

a. Debit to loss on bond retirement for $6,000
b. Credit to gain on bond retirement for $6,000
c. Debit to loss on bond retirement for $4,000
d. Credit to gain on bond retirement for $4,000

Answers

Answer:

Option B

Explanation:

Bonds payable will be debited because it was a liability to be paid when we issue bonds we debit the cash and credit the bonds payable. gain on redemption, discount and cash will be credited.

B. Credit to gain on bond retirement for $6,000  

Dr Bonds Payable                           500,000

Cr Gain on retirement                                     6,000

Cr Discount on Bonds Payable                     4,000

Cr Cash                                                             490,000

An account is governed by compound interest. The interest for three years on $480 is $52. Find the amount of discount for two years on $1000.

Answers

Answer:

$66.27

Explanation:

using the present value formula:

($480 + $52) = $480 / (1 + r)³

$532 = $480 / (1 + r)³

(1 + r)³ = $532 / $480 = 1.108333

∛(1 + r)³ = ∛1.108333

1 + r = 1.0349

r = 0.0349 = 3.48%

if you are going to discount $1,000 by 3.48% during 2 years:

PV = $1,000/1.0348² = $933.73

the discount = $1,000 - $933.73 = $66.27

Marcie's has sales of $179,600,depreciation of $14,900, costs of goods sold of $138,200, and other costs of $28,400. The tax rate is 35 percent. What is the net income

Answers

Answer:

-$1,235

Explanation:

Marcie's has a sales of $179,600

Depreciation is $14,900

Cost of goods sold is $138,200

Other costs is $28,400

Tax rate is 35%

Therefore the net income can be calculated as follows

= (sales - other costs-cost of goods sold-depreciation)(1-tax rate)

= (179,600-28,400-138,200-14,900)(1-35/100)

= -1,900 × 1-0.35

= -1,900 × 0.65

= -$1,235

Hence the net income is -$1,235

O'Donnell Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as

Answers

Answer:

Profit center

Explanation:

Proft center is simply a type or form of programs or services that is given (offered) within organization or a club operations that gives an additional revenue and profits to their bottom line product/services. It is also referred to as a type of strategic business unit.

Profit Centers are set up to Increase Revenue and Profitability by/usually offered for additional fee and less dependence on monthly dues

Your estimate of the market risk premium is 5%. The risk-free rate of return is 4%, and General Motors has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM), what is its expected return

Answers

Answer:

The expected rate of return is 12.5%

Explanation:

The computation of the expected rate of return using CAPM Model is shown below:

Expected rate of return = Risk free rate of return + Beta × Market risk premiun

= 4% + 1.5 × 5%

= 4% =+ 7.5%

= 12.5%

Hence, the expected rate of return is 12.5%

We simply applied the above formula

And, the same is to be considered

Bob inspires his employees to follow a vision, facilitate change, and create a strongly positive climate. Bob is a(n) _______ leader.

Answers

Answer:

Authoritative leader.

Explanation:

This is explained to be an effective leadership pattern that dictates certain forms and policies to everyone who finds himself under the said leader. Its usefulness is well seen in certain industries and organizations where decisions have to be made urgently and efficiently, and where it is important that certain tasks are performed during a specific way and there's little room for mistakes, like in construction, manufacturing and also the military. Using this sort of leadership prevents the possibilities of projects getting sidelined by an absence of organization or solid deadlines, and allows team members to target particular tasks without having to participate within the complex decision-making process.

On April 1, 2013, Maggie bought a new delivery truck for her business. The purchase price of the truck was $34,000. Maggie wrote a check for a 20% down payment. The interest rate on the loan is 8% and the loan period is nine months. How much interest must Maggie record when she pays off the loan on December 31st

Answers

Answer:

interest expense = $1,632

Explanation:

the original journal entry to record the purchase is:

April 1, 2013, truck purchased

Dr Truck 34,000

    Cr Cash 6,800

    Cr Notes payable 27,200

the interest expense = $27,000 x 8% x 9/12 = $1,632

the journal entry to record the payment of the note payable is:

December 31, 2013, payment of note payable

Dr Notes payable 27,200

Dr Interest expense 1,632

    Cr Cash 28,832

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