Homework Answers
21. Fixed cost
The cost borne in the business that are fixed and do not vary with the volume of production are considered fixed costs.
22. Profits are zero
(breakeven sales volume is where the revenue from the sales is enough to cover the cost of production. Hence profit starts coming after the sales volume has reached breakeven whcih means it has covered the cost of production.)
23. Have a loss of $1000
(if the business is maintaining a breakeven with its sales then decrease of sale and fixed costs will bring loss to the firm as expenses will be more than income.)
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that there was a huge market for this attire, Maddie rented a store front and a...
Question 24 2 pts Maddie noticed that many students on campus had t-shirts and sweatshirts with...
Question 24 2 pts Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each....
Artis Sales has two store locations. Store A has fixed costs of $190,000 per month and...
Artis Sales has two store locations. Store A has fixed costs of $190,000 per month and a variable cost ratio of 65%. Store B has fixed costs of $350,000 per month and a variable cost ratio of 40%. At what sales volume would the two stores have equal profits or losses? $640,000. $540,000. $514,286. Cannot determine with the information given.
Artis Sales has two store locations. Store A has fixed costs of $170,000 per month and...
Artis Sales has two store locations. Store A has fixed costs of $170,000 per month and a varia 20%. At what sales volume would the two stores have equal profits or losses? $280,000 $480,000. O O $533,333 O Cannot determine with the information given. ©2020 McGraw-Hill Edu per month and a variable cost ratio of 70%. Store B has fixed costs of $310,000 per month and a varia sses? W-Hill Education. All rights reserved.
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix...
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix Price Cost 60,000 units $40 S20 40,000 units 60 30 20,000 units 30 5 If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be a) Lower b) Higher c) Unchanged d) Cannot be determined Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for multiple products....
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit,...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 800 1,800 units. If the firm produces 1 comma 800 1,800 units, its average variable costs equal $ 7.00 7.00 per unit, and its average fixed costs equal $ 1.00 1.00 per unit. What is the firm's profit-maximizing (or...
1. Artis Sales has two store locations. Store A has fixed costs of $210,000 per month...
1. Artis Sales has two store locations. Store A has fixed costs of $210,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $390,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A? 2. Liu Sales has two store locations. Sanford has fixed costs of $169,000 per month and a contribution margin ratio of 30%. Orlando has fixed costs of $400,000 per month and a contribution...
Consider a monopolistically competitive firm which sells 300 units of output per month. At that output...
Consider a monopolistically competitive firm which sells 300 units of output per month. At that output level, MR = MC, average variable costs = $1 and total fixed costs = $900. The firm charges $8 for each unit of output. This firm is making a profit or loss equal to $__________________.
Consider a perfectly competitive market for shirts. The following graph shows the dally cost curves of a firm oper...
Consider a perfectly competitive market for shirts. The following graph shows the dally cost curves of a firm operating in this market. PRICE, COST (Dollars per shirt 20 Profit or Loss MC 16 ATC 12 AVC 6 12 18 24 30 36 QUANTITY OF OUTPUTIThousands of shirts per dayl Help Clear AIL In the short run, at a market price of $18 per shirt, this firm will choose to produce 27.00 shirts per day On the previous graph, use the...
please show work/give explaination 21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity...
please show work/give explaination
21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity volume in units September $120 October $90 11 0 November - $150 31 December $180 26 H A. not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit Z At current production volume of 1,000 units, variable costs are $6 per unit and fixed costs are $4 per unit, for a total...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 Cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $287,500. Required: 1. Determine the breakeven...
Question 24 2 pts Maddie noticed that many students on campus had t-shirts and sweatshirts with Greek organization letters or club names on them. Recognizing that there was a huge market for this attire, Maddie rented a store front and a silk screening machine to get into the t-shirt business. Maddie's rent is $1,000 a month, including utilities. The silk screen machine leases for $300 a month. Maddie can buy blank t-shirts for $6 each and sweatshirts for $10 each....
Artis Sales has two store locations. Store A has fixed costs of $170,000 per month and a varia 20%. At what sales volume would the two stores have equal profits or losses? $280,000 $480,000. O O $533,333 O Cannot determine with the information given. ©2020 McGraw-Hill Edu per month and a variable cost ratio of 70%. Store B has fixed costs of $310,000 per month and a varia sses? W-Hill Education. All rights reserved.
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix Price Cost 60,000 units $40 S20 40,000 units 60 30 20,000 units 30 5 If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be a) Lower b) Higher c) Unchanged d) Cannot be determined Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for multiple products....
Consider a perfectly competitive market for shirts. The following graph shows the dally cost curves of a firm operating in this market. PRICE, COST (Dollars per shirt 20 Profit or Loss MC 16 ATC 12 AVC 6 12 18 24 30 36 QUANTITY OF OUTPUTIThousands of shirts per dayl Help Clear AIL In the short run, at a market price of $18 per shirt, this firm will choose to produce 27.00 shirts per day On the previous graph, use the...
please show work/give explaination
21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity volume in units September $120 October $90 11 0 November - $150 31 December $180 26 H A. not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit Z At current production volume of 1,000 units, variable costs are $6 per unit and fixed costs are $4 per unit, for a total...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 Cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $287,500. Required: 1. Determine the breakeven...
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