Data concerning Farm Corporation's single product appear below:
Selling price per unit $ 290.00
Variable expense per unit $ 78.30
Fixed expense per month $ 161,330
1. The break-even in monthly dollar sales is closest to .
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Ответ:
$221,000
Explanation:
Breakeven Point is the level of Sales where business has no profit no loss. At this level of sales the business covers all the varible and fixed expenses.
Contribution margin = Selling Price - Variable cost
Contribution margin = $290 - $78.3
Contribution margin = $211.70
Contribution margin Ratio =
Contribution margin Ratio = Contribution margin / Sales
Contribution margin Ratio = $211.70 / $290
Contribution margin Ratio = 0.73 = 73%
Breakeven Point = Fixed Cost / Contribution margin ratio
Breakeven Point = $161,330 / 73%
Breakeven Point = $221,000
Ответ:
The value of sales increase when when advertising is increased by one unit is $123.3
Explanation:
The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)
Y = 45.9 + 123.3X
dY/dX = 123.3
Increase in sales when advertising is increased by one unit = $123.3