The break-even point in sales dollars may be computed as Select one: A fixed costs divided by the difference in unit price and unit variable costs. B. the difference between total contribution margin and operating profit divided by the contribution margin ratio. C fixed costs divided by contribution margin per unit. D. total contribution margin divided by the unit contribution margin per unit.

The break-even point in sales dollars may be computed as Select one: A fixed costs divided by the difference in unit price and unit variable costs. B. the difference between total contribution margin and operating profit divided by the contribution margin ratio. C fixed costs divided by contribution margin per unit. D. total contribution margin divided by the unit contribution margin per unit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Graph these cost behaviour patters over a relevant range of 0 - 10,000 units:a. Variable expenses of…

A: In sub-part a, the variable cost per unit is given as $8. For each additional unit produce costs…

Q: A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit…

A: In microeconomics theory, the opportunity cost of a particular activity is the value or benefit…

Q: Question 13 The cost index method is used estimate the cost of a component, system, or plant by…

A: Cost index are some of the time likewise alluded to as information records. The expense file…

Q: (b) A firm has an average cost function 125, q? 4. 16 A(q) where q is the firm's output. (i)…

A: i) The average cost if minimum at that level of output where the first-order derivative of average…

Q: A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month…

A: Break-even point is the point where the economic profit is 0, Where total revenue is equal to the…

Q: Darrell owns a furniture store. His total costs are $225,000 per year, and his fixed costs are…

A: Total costs include all the costs that a firm incurs when producing a product. Fixed costs are the…

Q: A plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production…

A: The selling price per unit is the amount of money a buyer will pay for one unit of a product.…

Q: nswer the question on the basis of the following cost data. Output Total Cost 0 $ 50 1 60 2 68 3 73…

A: The objective of the question is to calculate the average variable cost (AVC) of producing 4 units…

Q: Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of…

A: The measure that depicts the point total cost is in turn equal to the total revenue is known as the…

Q: Answer the question on the basis of the following cost data. Output Total Cost 0 $ 24 1 33 2 41…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: The following cost-output data were obtained as part of a study of the economies of scale in…

A: Answer1:The shape of the curve of an output (enrollment)-cost graph is given below:

Q: Night Shades. Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14…

A: Variable cost in economics means to expenses that vary with changes in the level of production or…

Q: true or false Total variable cost is equal to short-run total cost minus total fixed cost

A: Cost is the monetary value incurred in the production process on Factor of production.

Q: A new machine increases fixed cost and may or may not increase ATC as the…

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200…

A: Break-even Analysis- Breakeven is the point at which a firm must cover its costs of production.…

Q: A shoe company manufactures and sells a pair of shoes with the following cost and revenue data:…

A: here we calculate the quantity would the company have to sell to have a profit of AED 1,50,000 by…

Q: 6. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs…

A: Given that: Cost Function: Total Cost = Fixed Cost + Variable Cost, where fixed cost = $5000 and…

Q: The AVC at 2 units is: A) 80; B) 35; C) can not be determined; D) 70; E) 40.

A: The average variable cost indicates the total variable cost per unit in short-term manufacturing,…

Question

The break-even point in sales dollars may be computed as
Select one:
A. fixed costs divided by the difference in unit price and unit variable costs.
B. the difference between total contribution margin and operating profit divided by the contribution
margin ratio.
C. fixed costs divided by contribution margin per unit.
D. total contribution margin divided by the unit contribution margin per unit.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
If accounting profits are $6000 and explicit cost are $2200 Calculate total revenue
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
0 1 2 3 4 Total Product 5 6 Total Fixed Cost Total Variable Cost 165 Total Cost STC Q SAC = AFC + AVC || || AQ TFC Q SMC = Average Fixed Cost 22 53 AQ Use the definitions for TFC, TVC, TC, AFC, AVC, ATC and SMC along with the data provided above to fill in the missing values. Use space below for worksheet. ~ means infinitely large. Applicable relationships are: TVC Average Variable Cost 0 Q ATVC 60 Average Total Cost ATC 112.50 74.17 Marginal Cost 45 60
Match the terms in the first column with the appropriate definition in the second column.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.