The new break-even point in units is: $23,200
Solution:
Given,
Marigold Corp. sells radios for $50 per unit
Fixed costs = $545000
Variable costs = 60%
As a consequence of the modern electronic facilities, the fixed costs are projected to rise by $35,000 and the variable costs would be 50% of the purchase price.
Now,
The new break-even point in units is:
= $545000 + $35000
= $580,000
=> 580,000/25 = $23,200
<span>sales volume=(fixed cost+target profit)/benefaction per unit
=(100,000+20,000)/(100-20)
=(120,000/80)
=1500</span>
Examples:
1.) Having a stain on your rug there's only so much you can get out before your damaging your rug with cleaner
2.) Babysitting and having the child miss there mom, there's only so much you can do to try to calm him/her down
3.) Watering plants, if you haven't watered plant in a long time so you give them extra water, if you keep giving the plant extra water it will eventually drown and die.
Answer:
Equipment is an _asset__ account. It is reported on the _left_ side of the accounting equation and is __increased__ when equipment is purchased
Explanation:
Buying more Equipment is an asset to company in the sense that it helps in boosting the company production output and in turn generating more profit. It is reported on the left side of the company accounting equation. The aggregate equation increases as the number of equipment purchase increases.
