Liz, Inc., produces and sells a single product. The product sells for $130.00 per unit and its variable expense is $48.10 per unit. The company's monthly fixed expense is $223,587. Required:Determine the monthly break-even in unit sales.
What will be an ideal response?
| Selling price per unit | $ | 130.00 |
| Variable expense per unit | 48.10 | |
| Contribution margin per unit | $ | 81.90 |
Unit sales to break even = Fixed expenses ÷ Unit CM
= $223,587 ÷ $81.90 per unit = 2,730 units
You might also like to view...
Assume that investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur?
A. The required rate of return will decline for stocks whose betas are less than 1.0. B. The required rate of return on the market, rM, will not change as a result of these changes. C. The required rate of return for each individual stock in the market will increase by an amount equal to the increase in the market risk D. The required rate of return on a riskless bond will decline. E. The required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium.
After finishing his marketing degree, Ryan inherited the family Shrimp Shack restaurant. The restaurant is a small, local institution that beach visitors have been coming to for decades. Ryan wants to make his business grow and is considering either a market penetration or market development strategy. Describe what Ryan will likely do if he pursues either strategy.
What will be an ideal response?
Inflating your job titles and responsibilities on your résumé is ________
A) necessary to be competitive in today's job market B) impressive to employers C) unethical and should be avoided D) acceptable as long as you were employed during the dates you specify
Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas' personal assets
a. True b. False Indicate whether the statement is true or false