jilliandantuma84
19.10.2019 •
Business
Racer industries has fixed costs of $900,000. the selling price per unit is $250, and the variable cost per unit is $130. a. how many units must racer sell in order to break even? b. how many units must racer sell in order to earn a profit of $480,000? c. a new employee suggests that racer industries sponsor a 10k marathon as a form of advertising. the cost to sponsor the event is $7,200. how many more units must be sold to cover this cost?
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Ответ:
a. 7,500 units
b. 11,500 units
c. 60 more units
Explanation:
a. The formula to compute the break even point is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $250 - $130
= $120
And, the fixed expenses is $900,000
Now put these values to the above formula
So, the value would equal to
= ($900,000) ÷ (120)
= 7,500 units
b. To earn profit, the computation is shown below:
= (Fixed expenses + desired profit ) ÷ (Contribution margin per unit)
= ($900,000 + $480,000) ÷ (120)
= 11,500 units
c. The more units would be
= (Sponsor cost) ÷ (Contribution margin per unit)
= ($7,200) ÷ (120)
= 60 units
Ответ:
a
Explanation: