A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively

If each customer provides $50 of revenue and variable costs are $20/customer, find the number of customers required for each model to break even.


A: BEP = 5000/(50-20 ) = 166.7 customers
B: BEP = 3000/(50-20 ) = 100 customers
C: BEP = 1000/(50-20 ) = 33.3 customers

Business

You might also like to view...

Which of the following statements is false about a journal entry?

a. It may have more than one debit or credit entry. b. Credits are always indented. c. Accounts that are increased are always listed first. d. A space should be skipped between journal entries.

Business

________________ is a conflict management strategy that attempts to adjust one’s views to play down differences between parties.

a. Compromise b. Accommodation c. Avoidance d. Competition

Business

In a C corporation, who is liable for its actions?

a. the corporation b. the shareholders c. the owner of the company d. the board of directors

Business

The FTC's advertising substantiation program requires media ads to be registered with the FTC for review before being used to prevent deception

a. True b. False Indicate whether the statement is true or false

Business