The company thinks it can reduce fixed costs to $6,800, but variable cost will increase to $64 per hour. The price per unit will not change. What is the new breakeven point in hours?
Accurate Accounting provides accounting services at an average price of $110 per hour and incurs
variable costs of $60 per hour. Assume average fixed costs are $7,200 a month. (Round your answer to
the nearest whole unit.)
Breakeven = (Fixed costs + Target profit) / Contribution margin per unit
Breakeven = ($6,800 + 0) / ($110-$64) = 148
You might also like to view...
Which of the following is an example of a mutual-benefit organization?
A. Federal Bureau of Investigation B. United Steelworkers of America union C. University of California at Berkeley D. U.S. Postal Service E. Public Broadcasting System
According to private law, private persons may:
A. make their own rules only after studying practice of similar precedents. B. create legally binding agreements through their power to contract. C. create their own rules when there is no prior statute. D. enter into contracts, but the contracts will not be upheld in court.
Assist, Inc., a § 501(c)(3) organization, receives the following sources of support during the tax year. General public for services rendered$22,000 Governmental unit A for services rendered30,000 Governmental unit B for services rendered3,000 Governmental unit C for services rendered8,000 Gross investment income19,000 Contributions from individual disqualified persons18,000 Is Assist, Inc., classified as a private foundation? Explain.
What will be an ideal response?
Compared with attitudes, beliefs are ______.
a. easier to change b. harder to change c. unable to be changed d. equally difficult to change