A company wants to set up a kiosk in the mall and knows that the Fixed Costs
Question:
A company wants to set up a kiosk in the mall and knows that the Fixed Costs will be somewhere between $20,000 and $30,000; they also know that their average selling price will be somewhere between $28 and $32 and that their average product cost will be somewhere between $14 and $15. How many will they have to sell per year in order to break-even? If they sell 1500 units in a year, what is the probability that they will have a profit?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
Computation of the Break Even point Note Information is given in betw...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
Question Posted:
Students also viewed these Managerial Accounting questions
-
A company wants to set up a new office in a country where the corporate tax rate is as follows: 15% of first $50,000 profits, 25% of next $25,000, 34% of next $25,000, and 39% of everything over...
-
A company wants to set up a new office in a country where the corporate tax rate is as follows: 15% of first $50,000 profits, 25% of next $25,000, 34% of next $25,000, and 39% of everything over...
-
The state tax department wants to set up what would amount to a series of identical production lines (running 8 hours a day) for processing state tax returns that are submitted on the state's "EZ"...
-
Lang Enterprises was started when it acquired $4,000 cash from creditors and $6,000 from owners. The company immediately purchased land that cost $9,000. Required a. Record the events under an...
-
Progesterone is a hormone responsible for female sex characteristics. In the usual shorthand structure, each point where lines meet represent a C atom, and most H atoms are not shown. Draw the...
-
A sample of ancient bone unearthed in an archeological dig has 10 g of carbon in it. It is found to have a 14C activity of 50 decays per minute. How old is the bone sample? By what reaction does...
-
Do people who are interested in environmental issues visit museums more often than people who are not? The General Social Survey asked 990 people how interested they were in environmental issues, and...
-
A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an...
-
A company is facing supply chain issues with their two product lines. The increased demand has challenged suppliers. The first product line they have a supplier that they buy 60% of their product...
-
Write an Excel formula in cell Models!H3 to determine the base price for the Classic European home. This formula should also work when you copy it down to determine the base price for the New...
-
The McDonald Group purchased a piece of property for $1.2 million. It paid a down payment of 20% in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual...
-
Foley Corporation has the following capital structure at the beginning of the year: 6% Preferred stock, $50 par value, 20,000 shares authorized, 6,000 shares issued and outstanding $ 300,000 Common...
-
An economist was interested in modeling the relation among annual income, level of education, and work experience. The level of education is the number of years of education beyond eighth grade, so 1...
-
1)What is Constructor? 2)What is default constructor? 3)Constructor Overloading: 4) What is method overloading? 5)Can we overload main method in java? 6) What is method overriding? 7)Can we override...
-
Cameron is saving for his retirement 20 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $129.00 at the end of each month for the next 11 years....
-
3. Write half a page on the following: i. ii. Discuss semantic web and Al. Discuss the Semantic web and traditional web. What are the advantages of semantic web over traditional web. iii. Natural...
-
Find the limit of the sequence as n approaches infinity: ap= 2n-7 5n+8 Preview
-
There exists a close connection between high fertility, land tenure insecurity of the poor, land distribution, the low status of women among the poor, poor property rights, the dependence of the poor...
-
Refer to the data set pit.csv. Find a confidence interval of the specified level for the mean depth of pits for the following durations and humidity levels. When the sample size is 30 or less,...
-
White Bolder Investments (WBI) You are an intern working for WBI, a large investment advisory services in Sydney. Among other regular customers, WBI has been providing advisory services for Jumbo...
-
What does risk aversion mean?
-
Much of accounting is directed at servicing the information needs of those users that are external to an organization. (a) Identify at least three external users of accounting information and...
-
The following describe several different business organizations. Determine whether the description refers to a sole proprietorship, partnership, or corporation. a. Wallingford is owned by Gary...
-
Determine the missing amount from each of the separate situations a, b, and c below. a. b. $ 90,00039,000 c. $201,000 Assets Lablilitdes + Equity $164,000 $16,000 $62,000
-
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.15%. On the last day of every month, the accrued interest must be paid. On July...
-
21. Draw the Lewis structure of carbonate ion (CO32) showing all possible resonance structures if there are any. Determine the formal charge of each atom. 22. Draw the Lewis structure of ozone (O3)...
-
4. Calculate the expected concentration of the sodium hydroxide solution. The molar mass of NaOH is 39.997 g/mol. 5. Calculate and record the expected mass of benzoic acid required to react with...
Study smarter with the SolutionInn App