FREE Trial

A companys fixed operating costs are $500,000, its variable costs are $3.00 per unit, and the products sales price is

Question:

A company’s fixed operating costs are $500,000, its variable costs are $3.00 per unit, and the product’s sales price is $4.00. What is the company’s break-even point; that is, at what unit sales volume will its income equal its costs?


This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 90% (11 reviews)

QBE F P V …View the full answer


answer-question
Answered By
tutor-profile-image
Rishabh Ojha
During my undergraduate i used to participate as TA (Teaching Assistant) in several electronics and computers subject. I'm passionate about learning Computer Science as my bachelors are in Electronics but i learnt most of the Computer Science subjects on my own which Machine Learning also. At Present, i'm a working professional pursuing my career as a Machine Learning Engineer and i want to help others learn during my free hours, that's all the motivation behind giving tuition. To be frank i have no prior experience of tutoring but i have solved problems on opensource platforms like StackOverflow and github. ~Thanks
4.90+ 3+ Reviews 10+ Question Solved
Related Book For  answer-question
Fundamentals of Financial Management

Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books
Question Details
Chapter # 13
Section: Problems
Problem: 1
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: October 05, 2011 07:43:03
See More Questions

Students also viewed these Corporate Finance questions

Q:
Operating leverage measures a company s fixed costs as a percentage of its total costs It is used to evaluate the break even point of a business as well as the likely profit levels on individual...
A:
Essentially operating leverage boils down to an analysis of fixed costs and variable costs Operating leverage is highest in companies that have a high proportion of fixed operating costs in relation t......
Q:
At current prices, housing costs $50 per unit and the composite good has a price of 1 per unit. A wealthy benefactor has given Joe, a penniless person, 1 unit of housing and 50 units of the composite...
A:
Because Joe s initial bundle A in the diagram was given to him as opposed t......
Q:
A companys fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the products sales price is $4.50. What is the companys break-even point; that is, at what unit sales volume...
A:
QBE QBE F......
Q:
Q6). Suppose the ski patrol lowers a rescue sled and victim, having a total mass of 95.0 kg, down a 60 slope at constant speed, as shown in Figure 1 below. The coefficient of friction u between the...
A:
The rope is doing work against the gravity The friction always acts against the direction of motion......
Q:
Can a business manager's religious beliefs factor into the business's hiring treatment of same-sex partners? Why or why not?
A:
No a business manager should avoid letting her or his religious beliefs factor into the businesss tr......
Q:
A 13 cm by 13 cm steel angle with the dimensions shown is attached to a wall with a surface temperature of 600 K. The surrounding air is at 300 K, and the convective heat-transfer coefficient between...
A:
m 11 61 m 1 kAm0 42 0 01......
Q:
[(X T) (N F)] (K L) Identify the main operator in the following propositions.
A:
In the given pr......
Q:
Below are transactions that took place in Placid Company during the past year: a. Equipment was purchased. b. A cash dividend was declared and paid. c. Accounts receivable decreased. d. Short-term...
A:
Activity Not Transaction Operating Investing Financing Reported Source......
Q:
modify the code to where determining the winner is moved to the main () function. # Deals a card. Values range from 1 to 10 def deal_card(): return random.randint(1, 10) # Handles the player's...
A:
Your code looks almost complete but there are a few changes needed to properly determine the winner within the main function You need to capture the r......
Q:
Food Court Inc. (FCI) is a business in Boston, Massachusetts that offers meal plans to college students. Students, or their families, buy debit cards with fixed amounts that they can use to purchase...
A:
1 The answer depends on the volume of business The costs are the 400 software charge and the increas......
Q:
A firm is about to double its assets to serve its rapidly growing market. It must choose between a highly automated production process and a less automated one. It also must choose a capital...
A:
The firm may want to assess the asset investment and financing decisions jointly For instance......
Q:
Jackson Trucking Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere between 20% and 50%, and her staff has compiled the following...
A:
The optimal capital structure is that capital structure wh......
Q:
Recall that for use of a normal distribution as an approximation to the binomial distribution, the conditions np 5 and nq 5 must be met. For each given probability, compute the minimum sample size...
A:
a n 0 1 5 n 50......
Q:
Annie runs a trading business. Her trading year end is 30 June. She provided the following information relating to her non-current assets on 30 June 2022. Plant and machinery Cost RM 500,000...
A:
a Calculation of Depreciation and Accumulated Depreciation for Plant and Machinery Cost of Plant and Machinery RM 500 000 Accumulated Depreciation as......
Q:
Which of the following valuation approaches is least likely to be affected by earnings quality? a. Income approach. b. Market approach. c. Asset approach. d. Gordon Growth approach.
A:
The valuation approaches mentioned in the question can be affected by earnings quality to varying degrees Earnings quality refers to the reliability a......
Q:
Company began selling hand tools in Year 1 and provides a one-year warranty for all hand tools sold. The following information is available for Year 1 and Year 2 related to hand tool sales and the...
A:
Let s address each part of the problem step by step Problem 1 Warranty Accounting 1 Determine Year 1......
Q:
1. Laverne purchases a call option on XOM with a strike price of $90.00.XOM is already trading at $91.00 per share.Laverne pays a premium of $1.65 for the call, which expires in three months.If XOM...
A:
Certainly let s calculate the total profit or loss for each of these options transactions 1 Laverne......
Q:
A firm pays $600,000 to acquire another firm. The assets and liabilities of the acquired firm have a market value approximately equal to book value, except for the following: A/R book value is...
A:
The book value of net assets of the acquired firm can be calculated......
Q:
In Problems 3548, a sequence is defined recursively. List the first five terms. a 1 = 4; a n = 3a n-1
A:
a 4......
Q:
In the synthesis of the keto acid just given, the dicarboxylic acid decarboxylates in a specific way; it gives Explain. HO rather than HO
A:
The keto acids contain a carbonyl group in addition to the......
Q:
In the spring of 1984, Disney Productions stock was selling for about $3.125 per share. (All prices have been adjusted for 4-for-1 splits in 1986 and 1992.) Then Saul Steinberg, a New York financier,...
A:
Disneys management could and did argue that its stock was worth more than 4 22 per share and that if......
Q:
Two large, publicly owned firms are contemplating a merger. No operating synergy is expected. However, since returns on the two firms are not perfectly positively correlated, the standard deviation...
A:
Academicians have long argued that conglomerate mergers that produce no synergy are no......
Q:
Harrison estimates that if it acquires Van Buren, the year-end dividend will remain at $2.00 a share, but synergies will enable the dividend to grow at a constant rate of 7% a year (instead of the...
A:
D 1 2 00 g 7 b 1......
Contemporary Sociological Theory Expanding The Classical Tradition 6th Edition - ISBN: 0131850512 - Free Book