The following relationships exist for Cybo Industries, a manufacturer of electronic components. Each unit of output is sold for $45; the fixed costs are $175,000; variable costs are $20 per unit.
a. What is the firm’s gain or loss at sales of 5,000 units? Of 12,000 units?
b. What is the breakeven point?
Answers
a. The firm would have a gain of $125,000 at sales of 12,000 units.
b. The breakeven point is 7,000 units. At this level of sales, the firm covers all its costs and neither incurs a profit nor a loss.
a. To calculate the gain or loss at different levels of sales, we need to consider the total revenue and total costs.
For 5,000 units:
Total revenue = Price per unit * Number of units sold = $45 * 5,000 = $225,000
Total variable costs = Variable cost per unit * Number of units sold = $20 * 5,000 = $100,000
Total fixed costs = $175,000
Total costs = Total variable costs + Total fixed costs = $100,000 + $175,000 = $275,000
Gain/Loss = Total revenue - Total costs = $225,000 - $275,000 = -$50,000
Therefore, the firm would experience a loss of $50,000 at sales of 5,000 units.
For 12,000 units:
Total revenue = Price per unit * Number of units sold = $45 * 12,000 = $540,000
Total variable costs = Variable cost per unit * Number of units sold = $20 * 12,000 = $240,000
Total fixed costs = $175,000
Total costs = Total variable costs + Total fixed costs = $240,000 + $175,000 = $415,000
Gain/Loss = Total revenue - Total costs = $540,000 - $415,000 = $125,000
b. The breakeven point is the level of sales at which the firm neither incurs a profit nor a loss. At this point, total revenue equals total costs.
Let's denote the breakeven point as X.
Total revenue at the breakeven point = Price per unit * X = $45 * X
Total variable costs at the breakeven point = Variable cost per unit * X = $20 * X
Total fixed costs = $175,000
Total costs at the breakeven point = Total variable costs + Total fixed costs = $20X + $175,000
At the breakeven point, total revenue equals total costs:
$45X = $20X + $175,000
Simplifying the equation:
$25X = $175,000
X = $175,000 / $25
X = 7,000 units
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Related Questions
Has three segments that when analyzed together give an idea of what the company owns and what it owes
Answers
The correct answer is Balance sheet
A financial statement that lists a company's assets, liabilities, and shareholder equity at a certain point in time is referred to as a balance sheet. The foundation for calculating investor return rates and assessing the capital structure of a company is provided by balance sheets. The balance sheet is a financial statement that gives a quick overview of the assets and liabilities of a firm as well as the amount of shareholder investment. When doing basic analysis or calculating financial ratios, balance sheets can be utilized in conjunction with other crucial financial data. An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement. One of the three primary financial statements used to assess a company is the balance sheet.
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What are the potential benefits to India of entry by foreign retail establishments?
Answers
The following are a few advantages of FDI in the retail sector: enhanced market growth and expansion, organized retail outlets, quality products available at better and lower prices, advancement of employment.
Why does growth matter?
The process of developing; a method of slow, steady growth. dimensions or stage of development: It is still not fully developed. development was finished. ceremonial forms' evolution from a basic to a more complex stage. It generally refers to changing your viewpoint, goals, personality traits, knowledge, and abilities for the better. You pursue personal growth if you aim to improve any aspect of yourself, be it your temperament, your formal education, or your maturity.
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the length and Length breadth and height of a room in a house are 8m 6m and 4m respectively the house on a decides to paint the four walls of the room at the cost of ,0.04 square of wall how much will the owner spend in painting the walls
Answers
Answer:
\(Cost\ of\ 112m^2 = 4.48\)
Explanation:
Given
Dimension
\(Length= 8m\)
\(Breadth = 6m\)
\(Height = 4m\)
Cost per \(m^2\) = 0.04
Required
Determine the total cost to paint 4 walls
First, we need to calculate the area of the 4 walls.
\(Area = 2*(Length * Height) + 2 *(Breadth * Height)\)
Substitute values for Length, Breadth and Height
\(Area = 2*(8m* 4m) + 2 *(6m* 4m)\)
\(Area = 2*(32m^2) + 2 *(24m^2)\)
\(Area = 64m^2 + 48m^2\)
\(Area = 112m^2\)
Cost per \(m^2\) = 0.04.
\(Cost\ of\ 112m^2 = 112 * 0.04\)
\(Cost\ of\ 112m^2 = 4.48\)
How much is the peso mark-up if the selling price is P15 and the purchase cost is P10.00?
Answers
Answer:
Simply take the sales price minus the unit cost, and divide that number by the unit cost. Then, multiply by 100 to determine the markup percentage. For example, if your product costs $50 to make and the selling price is $75, then the markup percentage would be 50%: ( $75 – $50) / $50 = . 50 x 100 = 50%.
Explanation:
Ways in which the government can participate in economic activities
Answers
Answer:
Explanation:
In the United States, the government influences economic activity through two approaches: monetary policy and fiscal policy. Through monetary policy, the government exerts its power to regulate the money supply and level of interest rates. Through fiscal policy, it uses its power to tax and to spend.
When Rosco was unable to pay the $1,000 he owed Lyden, Lyden agreed to let Rosco paint Lyden's house in payment. When Rosco finished painting Rosco's house, the original obligation was discharged by
Answers
Answer:
full (by painting his house)
Explanation:
When Rosco was unable to pay the $1,000 he owed Lyden, Lyden agreed to let Rosco paint Lyden's house in payment. When Rosco finished painting Rosco's house, the original obligation was discharged by full (by painting his house)
Reason -
(i.e. If Rosco is unable to pay $1000 then in that option he painted Lyden's house so he is discharged by painting his house )
f the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is a. 15 units of output. b. 5 units of output. c. 3 units of output. d. 45 units of output. e. 75 units of output.
Answers
if the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5, then the marginal product of the fifth worker is 5 units of output. The correct answer is b
The marginal revenue product (MRP) is the additional revenue generated by hiring an additional worker. In this case, the MRP of the fifth worker is $15.
The price of a unit of output is given as $5 regardless of how much is sold. Therefore, the marginal product (MP) of the fifth worker can be calculated by dividing the MRP by the price of a unit of output:
MP = MRP/Price
MP = $15/$5
MP = 3
This means that the fifth worker generates an additional 3 units of output.
However, the question is asking for the marginal product of the fifth worker specifically. Since the firm has already hired four workers before the fifth worker, the total output produced by all five workers is unknown. Therefore, we cannot directly calculate the total output and divide it by the number of workers to get the average product.
Instead, we use the fact that the marginal product is the change in total product resulting from the hiring of an additional worker.
Assuming that the first four workers were equally productive, the total output produced by the first four workers can be calculated by multiplying the number of workers by their average product:
Total output of first four workers = 4 x MP of the first four workers
Total output of first four workers = 4 x 3
Total output of first four workers = 12
The fifth worker generates an additional 3 units of output, so the total output produced by all five workers is:
Total output of all five workers = Total output of first four workers + MP of fifth worker
Total output of all five workers = 12 + 3
Total output of all five workers = 15
Therefore, the marginal product of the fifth worker is 5 units of output (the additional output generated by the fifth worker divided by the number of workers hired, which is 1).
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What determines the value of an item? (Edg.)
Answers
Answer:
the amount of goods that are produced. -the capital required to build the factory. -the unlimited wants of the consumers. -the resources consumed in production.
which attribute in perfect competition makes it so firms will make zero economic profit in the long run?
Answers
In perfect competition, the attribute that leads to firms making zero economic profit in the long run is known as "free entry and exit."
This condition implies that there are no barriers to entry or exit in the market, allowing new firms to enter the industry and existing firms to leave if they are not earning economic profits.
In the long run, in a perfectly competitive market, firms will earn enough revenue to cover all their costs, including opportunity costs of production. However, they will not earn any additional profit above and beyond that. If firms were earning positive economic profits in the short run, the entry of new firms into the market will erode those profits until they reach zero in the long run.
This zero economic profit condition in perfect competition serves as a key feature that promotes efficiency in resource allocation. It ensures that firms are producing goods or services at their lowest possible cost, with no excess profit signaling that resources are being used efficiently and in line with consumer demand.
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Josh runs a kayak rental company in Florida keys. his career would fall under the education and training career cluster true or false.
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Answer:
The answer is False
Demand forecasts serve as inputs to financial, marketing, and personnel planning.a. Trueb. False
Answers
The statement "Demand forecasts serve as inputs to financial, marketing, and personnel planning" is True.
Demand forecasts play a crucial role in various aspects of a business, including financial, marketing, and personnel planning. By accurately predicting customer demand, organizations can make informed decisions regarding their budget allocation, marketing strategies, and staffing requirements. In financial planning, demand forecasts help determine revenue projections, enabling companies to allocate resources efficiently and make investment decisions. In marketing, understanding demand trends allows businesses to create targeted campaigns and promotions that align with customer needs.
Finally, in personnel planning, demand forecasts help organizations decide how many employees they need, in which departments, and when to hire or reduce staff to meet the changing demand levels. Overall, demand forecasting is essential for businesses to optimize their operations and stay competitive in the market.
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How do companies research potential new markets? Choose a global company who has a record of successful new market entry and explain why it has had this success, and consider also the reasons for any failures.
Answers
Explanation:
Companies search for potential new markets by collecting consumer data to understand their opinions, wants and needs, and then being able to enter a new market with a safe and effective strategy to generate profits and successes. Data collection occurs in the form of primary and secondary research. The primary research takes place directly with the consumer, it can be carried out in the form of focus groups, which is a direct analysis of the market demand researched by the consumer.
As for secondary research, information is received through third parties, such as online sites, trade associations, etc., which give an idea of market behavior.
IKEA in China is an example of a global company that entered a different market in the form of strategic adaptation to meet the needs of the Chinese, through ideas and concepts aimed at this public.
Question Mode Multiple Choice Question In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members. Multiple choice question. corporate vertical marketing system conventional marketing channel strategic relationship JIT system
Answers
Answer:
b. Warehouses
c. Stores
Kruger Heavy Machine Inc. has an opening cash balance of $2,000. During the year, it purchased raw materials worth $5,000, sold goods worth $10,000, and paid office rent of $4,000. What is the company’s closing cash balance that it will carry forward into the next year?
A.
$9,000
B.
$3,000
C.
$7,000
D.
$6,000
Answers
Answer:
the answer is B. $3,000
Explanation:
basically you do
2000-5000= -3000
-3000+10,000=7000
7000-4000=3000
If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answers
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
sports marketing companies who market heavily toward the segment of their market who has played the sport or can picture themselves playing the sport are leveraging which aspect of psychographics?
Answers
Sports marketing companies that heavily target the segment of their market who has played the sport or can picture themselves playing the sport are leveraging the aspect of psychographics known as "lifestyle" or "interests and activities."
Psychographics is a marketing research technique that involves understanding and categorizing consumers based on their attitudes, values, interests, and behaviors.
goes beyond demographics (age, gender , income) to gain deeper insights into consumers' motivations and preferences.
By targeting individuals who have played the sport or can envision themselves participating, sports marketing companies tap into the lifestyle aspect of psychographics. This means they focus on consumers who have a genuine interest in the sport and align their marketing efforts to resonate with their passion, enthusiasm, and dedication to the activity.
These marketing strategies may involve showcasing the excitement and thrill of playing the sport, highlighting the camaraderie among players, emphasizing the health and fitness benefits, or showcasing success stories of individuals who have participated in the sport. The goal is to connect with consumers who have a strong affinity for the sport and are likely to engage with the brand or product being promoted.
By understanding the lifestyle preferences and interests of their target market, sports marketing companies can tailor their messaging, advertising, and promotional efforts to appeal directly to individuals who have a genuine connection and interest in the sport.
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In which countries do people prefer discussing business during meals?
Answers
(in metres): perimeter of the sand pit. Perimeter of circle = 2 nr (n = 3,142)
Answers
Answer:
pjdjdj xjsk-jhdjdi jjdjidid
Logo and website design are
examples of start-up costs.
Answers
True: Logo and website design are examples of start-up costs. Operating costs include payroll. Building improvements should be calculated into start-up costs.
Choose the reason that does not support why "Bad News Travels Fast": a. The customer still needed to vent. b. Customers may seek revenge. c. Customers remember typical events. d. Service organizations and employees appear impersonal. All of the above support why Bad News Travels Fast.
Answers
All of the reasons mentioned in options a, b, c, and d support why "Bad News Travels Fast." Therefore, the statement that does not support the idea is "None of the above" rather than a specific option given.
When it comes to negative news or experiences, customers often feel the need to vent and share their dissatisfaction. This is supported by option a, which suggests that customers still need to vent. Additionally, option b states that customers may seek revenge, indicating their tendency to spread negative experiences as a way to harm the reputation of the company or seek retribution.
Option c highlights that customers tend to remember negative or typical events more vividly than positive ones, contributing to the spread of bad news. Lastly, option d points out that impersonal interactions with service organizations and employees can further fuel negative perceptions and lead to the rapid spread of bad news.
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Explain what a trade war is
Answers
Answer: A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.
Explanation:
a financial plan is most influenced by
Answers
Answer: priorities and goals
Explanation: because
The financial plan is most influenced by priorities and goals Option(b) is correct.
What does Financial Plan means?Overall utilization, a financial plan is a complete assessment of a singular's ongoing compensation and future financial state by utilizing current known factors to foresee future pay, resource values and withdrawal plans.
In business, a financial plan can allude to the three essential financial assertions monetary record, pay explanation, and income proclamation) made inside a field-tested strategy. Financial estimate or financial plan can likewise allude to a yearly projection of pay and costs for an organization, division, or division.
A financial plan can likewise be an assessment of money needs and a choice on the most proficient method to raise the money, like through getting or giving extra offers in an organization A financial plan might contain forthcoming financial explanations, which are comparative, however unique, than a financial plan. Financial plans are the whole financial bookkeeping outline of an organization. Complete financial plans contain all periods and exchange types.
Therefore Option(b) is correct.
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Hotel rooms in Smalltown go for $80, and 900 rooms are rented on a typical day.
To raise revenue, the mayor decides to charge hotels a tax of $15 per rented room. After the tax is imposed, the going rate rises to $85, and the number of rooms rented falls to 800.
Answers
The tax had a negative impact on the hotel industry in Smalltown, but generated revenue for the government. This highlights the trade-offs involved in taxation and the importance of carefully considering the potential impacts of policy changes.
We can use the information provided to calculate the total revenue generated by hotel room rentals before and after the tax is imposed.
Before the tax is imposed:
Number of rented rooms = 900
Price per room = $80
Total revenue = 900 * 80 = $72,000
After the tax is imposed:
Number of rented rooms = 800
Price per room = $85 ($80 + $15 tax)
Total revenue = 800 * 85 = $68,000
We can see that the total revenue generated by hotel room rentals decreased after the tax was imposed. Although the price per room increased, the decrease in the number of rooms rented more than offset the increase in price. This is an example of how taxes can impact the behavior of consumers and businesses.
It's important to note that while the total revenue decreased, the government still generated revenue through the tax. The total tax revenue can be calculated as follows:
Number of rented rooms = 800
Tax per room = $15
Total tax revenue = 800 * 15 = $12,000
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Hotel rooms in Smalltown go for $80, and 900 rooms are rented on a typical day. To raise revenue, the mayor decides to charge hotels a tax of $15 per rented room. After the tax is imposed, the going rate rises to $85, and the number of rooms rented falls to 800.
What will be the impact on tax?
based on behavioral characteristics 80% of sales come from 20% of customers.
True
False
Answers
Answer:
true
Explanation:
Land labor capital on strawberries
Answers
Capital: The money that would be put into the strawberry and used to pay the workers
Labor: Workers that would Lantana and harvest the strawberries
Some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. This is an example of the
Answers
The rating of the hotel's service is an example of ordinal scale.
What is ordinal scale?Ordinal scale is a term used in statistics. It refers to a measurement scale that allocates values to variables based on their relative ranking with respect to one another.
Ordinal scale displays from highest to lowest by different measurement points and also have equal units.
Hence, the above is an example of ordinal scale because it make use of values to variables in relation to their ranking.
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Yeet TAKE IT ALL SEA URCHINS
Answers
Answer:
thanks i guess?
Explanation:
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
if a sale closing in escrow cannot be consummated because the seller's title cannot be cleared, the escrow agent a) the escrow agent does none of these. b) postpones the closing until title is cleared. c) credits the buyer for the amount necessary to clear the title. d) reinstates parties back to their former status as if no sale had occurred
Answers
Option d) is the correct option. The escrow agent reinstates parties back to their former status as if no sale had occurred.
All paperwork is sent back to the seller, and the buyer receives all earnest money and/or purchase money.
Escrow takes place between the moment a seller accepts a purchase offer and the moment the buyer takes possession of the property. The creation of an account in which deposits and other payments can be held constitutes the first step in the escrow procedure.
The buyer is required to wait for bank clearance, obtain financing, complete inspections, buy hazard insurance, perform walk-throughs, and proceed with closing. If the terms are not met or there is an issue with the property, the buyer may terminate the contract.
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the promotion of one particular media product across various platforms is called
Answers
The promotion of one particular media product across various platforms is called cross-platform promotion.
Cross-platform promotion refers to the strategic dissemination and marketing of a media product, such as a movie, TV show, or video game, through multiple channels and platforms simultaneously.
This approach aims to reach a broader audience and maximize the product's exposure and impact by leveraging different mediums, such as television, radio, social media, websites, and print media.
By utilizing various platforms, cross-platform promotion seeks to create a cohesive and integrated promotional campaign that engages and attracts audiences across different media channels.
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