Question

An item is sold for $2.30. Consider that the retailer has $2,000 in fixed costs and an average variable cost of .30 per unit.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer- The retailer’s break-even quantity under this scenario= 1000 units.

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

= $2000/($2.30 per unit-$0.30 per unit)

= 1000 units

Add a comment
Know the answer?
Add Answer to:
An item is sold for $2.30. Consider that the retailer has $2,000 in fixed costs and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1-A retailer pays a wholesaler $24.00 for an item and then sells it with a 25...

    1-A retailer pays a wholesaler $24.00 for an item and then sells it with a 25 percent markup. What is the retailer's selling price? 2-A college "marketing club" printed 1,000 "We're Number 1" bumper stickers for sale at $3.00 each as a fund-raiser. Its fixed costs were $500, and the variable cost for each sticker was $.50. What is the club's average cost? 3-If a firm's total fixed cost is $400,000 and its fixed cost contribution per unit is $10,...

  • The breakeven point of 2,000 ​units, variable costs total $5,000, and fixed costs total $8,000. The...

    The breakeven point of 2,000 ​units, variable costs total $5,000, and fixed costs total $8,000. The 12,001st unit sold will contribute​ ________ to profits. A. 4.00 B. 6.00 C. 1.50 D. 2.50

  • Figure and Table: Variable, Fixed, and Total Costs Total cost $2,500 Total cost, TC 2,000 1,500...

    Figure and Table: Variable, Fixed, and Total Costs Total cost $2,500 Total cost, TC 2,000 1,500 1,000 500 F D E A B C 20 40 60 80 100 Quantity of wheat (bushels) Points on Graph Quantity of Labor (workers), L. Quantity of Wheat (bushels). Variable ariable Cost. VC Fixed Cost, FC $400 400 400 400 DOWN Total Cost, TC = FC + VC 400 600 800 1.000 1,200 1.400 1,600 1.800 2.000 400 400 12) (Figure and Table: Variable,...

  • Units in beginning inventory Units produced Units sold 2,000 units 13,000 units 12,000 units Costs per...

    Units in beginning inventory Units produced Units sold 2,000 units 13,000 units 12,000 units Costs per unit: Direct materials Direct labor Variable overhead Variable selling Fixed overhead $7 $6 $2 $3 $5 What is the total cost (value) of ending inventory under variable costing? $45,000 $60,000 $15,000 O $54,000

  • Consider a three year project with an initial fixed asset investment of $418142, straight-line depreciation to...

    Consider a three year project with an initial fixed asset investment of $418142, straight-line depreciation to zero over the lifetime of the project and no salvage value. Each item will be sold for a $71 price. Variable costs are $21 for each item, and an annual fixed cost of $190809 will be incurred. The current estimate of units sold per year is 37006 units. The company has a tax rate of 32% and the discount rate is 10%. How sensitive...

  • Consider a three year project with an initial fixed asset investment of $583206, straight-line depreciation to...

    Consider a three year project with an initial fixed asset investment of $583206, straight-line depreciation to zero over the lifetime of the project and no salvage value. Each item will be sold for a $74 price Variable costs are $20 for each item, and an annual fixed cost of $162680 will be incurred. The current estimate of units sold per year is 31384 units. The company has a tax rate of 40% and the discount rate is 10%. How sensitive...

  • Consider the following information: Number of units produced 2,000 units Direct materials cost : $8 per...

    Consider the following information: Number of units produced 2,000 units Direct materials cost : $8 per unit Direct labor cost : $12 per unit Variable manufacturing overhead $6 per unit Fixed manufacturing overhead $8,000 per unit Variable selling and administrative cost $2 per unit Fixed selling and administrative cost $6,000 Based on the information, what is the unit product cost under absorption costing system? O $26 O $30 O $28 O $32

  • Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given...

    Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given the information below, answer each of the questions asked. You are given the following information (2017 Annual): Price per Unit $25.00 Advertising $15,000 Packaging per unit $ 5.00 Direct Labor per unit $ 8.00 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment Rent $50,000 Total Units Sold 10,000 Your firm's Total Assets are $400,000 with total equity of $75,000 To answer the...

  • NAME PRINT LAST NAME, FIRST NAME SECTION# COSTS, PROFIT, AND PRODUCTION Suppose ABC Corporation sold 2,000 units of...

    NAME PRINT LAST NAME, FIRST NAME SECTION# COSTS, PROFIT, AND PRODUCTION Suppose ABC Corporation sold 2,000 units of output at a price of $2 per unit. If ABC 1. Corporation's explicit cost to produce the 2,000 is $1,500 and its implicit cost to produce the 2,000 units is $2,000, then ABC Corp. has total revenue of accounting profit of ,and an economic profit of an $1,500; $0; $1,000 $4,000; $1,000; $0 $4,000; $500; $2,500 $4,000; $2,500; $500 a. b. с....

  • 9. Xavier Medical Supply is a retailer of home medical equipment. Last year, Xavier's sales revenues...

    9. Xavier Medical Supply is a retailer of home medical equipment. Last year, Xavier's sales revenues totaled $6,000,000. Total expenses were $2,100,000. Of this amount, approximately $1,500,000 were variable, while the remainder were fixed. Since Xavier's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements Requirement 1. What is Xavier's current operating income? Begin by identifying the formula to compute the operating income. (1) -...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT