Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage

Youngsville Industries Inc. expects to maintain the same inventories at the end of 20Y5 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows

Estimated Fixed Cost

Estimated Variable Cost (per unit sold)

Production Costs:



Direct Materials


$48


Direct Labor


$38


Factory Overhead


$150,000


$25

Selling Expenses:



Sales salaries and commissions


$125,000


$10


Advertising


$50,000



Travel


$15,000



Miscellaneous selling expense


$10,000


$2

Administrative Expenses:



Office and officers' salaries


$140,000



Supplies


$10,000


$5


Miscellaneous administrative expense


$10,000


$2

Total


$510,000


$130



It is expected that 22,175 units will be sold at a price of $170 a unit. Maximum sales within the relevant range are 27,500 units.

Answers

Answer 1

Answer:

Giving the following information:

Units sold= 450,000

Total Sales= $12,150,000

Total variable cost= $6,925,500

Total fixed cost= $3,242,673

First, we need to calculate the unitary selling price and variable cost. Then, we calculate the contribution margin.

Selling price= 12,150,000/450,000= $27

Unitary variable cost= 6,925,500/450,000= $15.39

Contribution margin per unit= 27 - 15.39= $11.61

To calculate the contribution margin ratio, we need to use the following formula:

Contribution margin ratio= contribution margin/ selling price

Contribution margin ratio= 11.61/27

Contribution margin ratio= 0.43

To calculate the break-even point both in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 3,242,673 / 11.61= 279,300 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 3,242,673/0.43= $7,541,100

Finally, we need to incorporate the desired profit to the break-even point formula:

Break-even point in units= (3,242,673 + 426,087) / 11.61

Break-even point in units= 316,000 units

Step-by-step explanation:


Related Questions

400 reduced by twice my age is 68 how old am i

Answers

hope it helps.........

PLEASE HELP! 6TH GRADE MATH please write done what number you're doing

Answers

Answer:

# 10 is 4/3 or 1 and 1/3

#11 is 4/10 or 2/5

#12 is 2 and 3/4

#13 is 36/12 or 3 and 1/12

Step-by-step explanation:

i am not 100% sure on #13 btw

hope this helped!

p.s it would be cool if you gave me brainliest.

Answer:

Hey your answers on there are correct.

Step-by-step explanation:

Brandon enters bike race. He bikes 9 1/2 miles every 1/2 hour

Answers

Since there is no table given I will assume that what you want me to do is to show that Unit rate of Brandon’s biking. SO here are the data that we need: => 8 and ½ miles = 8.5 miles => ½ hour = .5 hours or 30 minutes Now, let’s solve for the unit rate => SO in every 30 minutes he bikes around 8.5 miles => Since 1 hour is equals to 30 minutes, simply multiply 8.5 by 2 => 8.5 * 2 = 17miles => 17 miles / hour
Hope this helps:)

Which of the following is a true statement?
6/9 = 1/3
1/4 > 1/3
13/15 > 4/5
5/6 > 10/12

Answers

Answer:

13/15 > 4/5 is a true stament.

Step-by-step explanation:

The left side is 0.86 repeating turned into a decimal. which means 0.86 is greater than the right which the right is 0.8 turned into a decimal. which in this case this means that the given stament is always true.

The weekly demand function for x units of a product sold by only one firm is
p = 800 − 0.5x dollars, and the average cost of production and sale is C(with a line on top) = 300 + 2x dollars.

(a) Find the quantity that will maximize profit.

(b) Find the selling price at this optimal quantity.

(c) What is the maximum profit?

Answers

Answer:

a) x = 798   is the quantity that maximizes the profit

b)po(x) = 401 $/unit

c)P(max ) = 636105 $

Step-by-step explanation:

The weekly demand function is equal to the price by unit and the Revenue function is weekly demand times quantity of units then:

R(x) = p(x) * x

R(x) = ( 800 - 0,5*x ) * x

R(x) = 800*x - 0,5*x²

The equation for the profit is:

P(x) = R(x) - C(x)

P(x) = 800*x - 0,5*x² - ( 300 + 2*x)

P(x) = 798*x - 0,5*x² - 300

a) P(x) = 798*x - 0,5*x² - 300

Taking derivatives on both sides of the equation:

P´(x) = 798 - x

If P´(x) = 0     then    798 - x = 0

x = 798   is the quantity that maximizes the profit

b) Selling price for the optimal quantity is:

p(x) = 800 - 0,5*x

p(x) = 800 - 0,5* 798

po (x) = 800 - 399

po(x) = 401 $/unit

c) Pmax = ?

P(x) = 798*x - 0,5*x² - 300    by subtitution of  x = 798

P(max) = 636804 - 399 - 300

P(max ) = 636105 $

a) The quantity that will maximize profit is [tex]100 \ units[/tex].

b) The selling of at this optimal quantity is [tex]\[/tex][tex]750[/tex] per unit.

c) So, the maximum profit is [tex]\[/tex][tex]25000[/tex].

Demand Function:

A demand function is a mathematical equation that expresses the demand for a product or service as a function of its price and other factors such as the prices of the substitutes and complementary goods, income, etc.

The given demand function,

[tex]P=800-\frac{1}{2}x[/tex]

So, the revenue function is,

[tex]R(x)=p.x\\R(x)=800-x-\frac{1}{2}x^{2}[/tex]

[tex]\Rightarrow[/tex]Average cost is

[tex]\bar{C}=300+2x[/tex]

So, the total cost function is,

[tex]C\left ( x \right )=\bar{C}.x \\ C\left ( x \right )=300x+2x^{2}[/tex]

a) Profit function:

[tex]P\left ( x \right )=R\left ( x \right )-C\left ( x \right ) \\ =800x-\frac{1}{2}x^{2}-300x-2x^{2} \\ P\left ( x \right )=500x-\frac{5}{2}x^{2}[/tex]

For maximum,

[tex]{P}'\left ( x \right )=0 \\ 500\left ( 1 \right )-\frac{5}{2}\left ( 2x \right )=0 \\ 500-5x=0 \\ x=100[/tex]

b) Selling Price:

[tex]P=800-\frac{1}{2}x \\ at \ x=100 \\ P=800-\frac{1}{2}\left ( 100 \right ) \\ =\$ 750[/tex]

c) Maximum Profit:

[tex]P\left ( x \right )=500x-\frac{5}{2}x^{2} \\ P\left ( 100 \right )=500\left ( 100 \right )-\frac{5}{2}\left ( 100 \right )^{2} \\ P\left ( 100 \right )=\$ 25000[/tex]

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There are approximately 330,000,000 cubic miles of water on Earth. A cubic mile is approximately 147,200,000,000 cubic feet. How much water is on Earth? Estimate using scientific notation

Answers

Answer: 4.8576 × 10^19 cubic feet of water.

Step-by-step explanation:

330m * 147.2b = 48 quintillion feet.

Answer:

5 x 10^19 ft^3

Step-by-step explanation:

Please help I would appreciate

Answers

Answer:

the 1st 2nd and 5th since if there is even one negative in the fraction it makes the whole fraction negative

Use the Intermediate Value Theorem to show that there is a root of the given equation in the specified interval. ex = 3 − 2x, (0, 1) The equation ex = 3 − 2x is equivalent to the equation f(x) = ex − 3 + 2x = 0. f(x) is continuous on the interval [0, 1], f(0) = _____, and f(1) = _____. Since f(0) < 0 < f(1) , there is a number c in (0, 1) such that f(c) = 0 by the Intermediate Value Theorem. Thus, there is a root of the equation ex = 3 − 2x, in the interval (0, 1)

Answers

Answer:

[tex]f(0)=-2\\f(1)=e-1[/tex]

Step-by-step explanation:

According to intermediate value theorem, if a function is continuous on an interval [tex][a,b][/tex], and if [tex]k[/tex] is any number between [tex]f(a)[/tex] and [tex]f(b)[/tex], then there exists a  value, [tex]x=m[/tex], where [tex]a<m<b[/tex], such that [tex]f(m)=k[/tex]

In the given question,

Intermediate Value Theorem is used to show that there is a root of the given equation in the specified interval.

Here,

[tex]f(x)=e^x-3+2x[/tex]

Put [tex]x=0[/tex]

[tex]f(0)=e^0-3+2(0)=1-3+0=-2[/tex]

Put [tex]x=1[/tex]

[tex]f(1)=e^1-3+2(1)=e-3+2=e-1[/tex]

Please find the area and circumference of
the circle below

Answers

Answer:

area: 153.86

Circumference: 43.96 :D

Step-by-step explanation:

Compute the mean, median, and mode for the following three sets of scores saved.

Score 1 Score 2 Score 3

3 34 154
7 54 167
5 17 132
4 26 145
5 34 154
6 25 145
7 14 113
8 24 156
6 25 154
5 23 123

Answers

Answer/Step-by-step explanation:

Score 1:

3, 7, 5, 4, 5, 6, 7, 8, 6, 5

Mean = [tex] \frac{3 + 7 + 5 + 4 + 5 + 6 + 7 + 8 + 6 + 5}{10} = \frac{56}{10} = 5.6 [/tex]

Median: order the data from least to the greatest.

3, 4, 5, 5, 5, 6, 6, 7, 7, 8

The median is average of the fifth and sixth data value in the data set

Median = (5 + 6)/2 = 11/2 = 5.5

Mode = value with the highest frequency = 5

Score 2:

34, 54, 17, 26, 34, 25, 14, 24, 25, 23

Mean = sum of all values/10

Mean = 276/10 = 27.6

Median: order the data set from min to max.

14, 17, 23, 24, 25, 25, 26, 34, 34, 54

The median is average of the fifth and sixth data value in the data set

Median = (25 + 25)/2 = 50/2 = 25

Mode = 25 and 34 (both have frequencies of 2)

Score 3:

154, 167, 132, 145, 154, 145, 113, 156, 154, 123

Mean = sum of all values/10

Mean = 1443/10 = 144.3

Median: order the data set from min to max.

113, 123, 132, 145, 145, 154, 154, 154, 156, 167

The median is average of the fifth and sixth data value in the data set

Median = (145 + 154)/2 = 299/2 = 149.5

Mode = 154

PLZ HELP !!
Max deposited $1,300 into an account that pays 4.5% interest, compounded daily. At end of six years he has a balance of ?

Answers

Answer:

The final balance is $1,692.94.

The total compound interest is $392.94.

Step-by-step explanation:

1,300 x 0.045=___ x 6

What is the slope of y-5= 3x + 4?

Answers

Answer:

x=53

y=19

Step-by-step explanation:

3x + y-5

3(5)=15

15+y

Find the equation of a line passing through the point (6,9) and (0,0)

Answers

Answer:

y=3/2x

Step-by-step explanation:

The equation of the required line as per slope-intercept form is 3x - 2y = 0.

What is the equation of a line passing through two points?

The equation of a line that passes through points (x₁, y₁) and (x₂, y₂) is defined as:  

m = (y₂ - y₁)/(x₂ - x₁)

Here, 'm' is the slope and 'c' is the y-intercept of the given line.

Therefore, the slope of a line that passes through (6, 9) and (0, 0) is

= (0 - 9)/(0 - 6)

= 3/2

Now, the general form of a line is y = mx + c. Here, 'm' is the slope and 'c' is the y-intercept of the line.

The line passes through the point (0, 0).

Therefore, 0 = (3/2) × 0 + c

⇒ c = 0

Now, the equation of the straight line is

y = (3/2)x + 0

⇒ 2y = 3x

⇒ 3x - 2y = 0

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How can you use a number line to find the sum of -8 and 9?

Answers

Answer:

The answer is 1

Step-by-step explanation:

If you look at the number line and start counting from -8 and count 9 to the right then the number that you end on is the answer.

In a population of 271 Dd parrots, predators kill 55. What is the approximate fitness of the genotype?

Fitness of Dd: 20%
Fitness of Dd: 40%
Fitness of Dd: 60%
Fitness of Dd: 80%

Answers

Answer:

60%

Step-by-step explanation:

They killed quite a bit and a lot were left.

how many inches of lumber are remaining?

Answers

Answer:

I can't really answer this question because there is no picture of actual question but 1 foot = 12 inches so for instance we could do 6 inches + 3 inches = 9 inches.      

Step-by-step explanation: How we would solve this problem is simple.

6 + 3 = 9  if you have to turn this into a fraction it would be 9/12 = (3/4).

A camera has a listed price of 873.95 before tax. If the sale taxes rate is 6.5, find the total cost of the camera with sales tax included. Round your answee to the nearest cent. As necessary.

Answers

Answer:

$930.76

Step-by-step explanation:

So if you move the decimal in the percentage over to the right by two then you have your sales tax rate in decimal form (0.065), you can then multiply that by the listed price and you'll have about 56.80675 so this number will be the sales tax price, then you may add this to the listed price and your answer will be 930.75675, then once you round up it will be $930.76.

Which number has the same absolute value
as 8

Answers

Answer:8

Step-by-step explanation:


Solving a System of Linear Inequalities

Given the system of inequalities:
4x - 5y = 1
Which shows the given inequalities in slope-intercept
form?

Answers

Slope is 4/5
Y intercept is 0,-1/5

Answer:

y = 4/5x -1/5

Step-by-step explanation:

4x -5y = 1

-5y = -4x + 1

5y = 4x - 1

y = 4/5x - 1/5

How many times greater is the product of 4 x 300 than the product 4 x 30

Answers

Answer:

10 times bigger

Step-by-step explanation:

because if you do 4 times 300 thats 1200

and if you do 4 times 30 then you get 120

and 120 times 10 is 1200 so there you go.

HOPED THIS HELPED!!!!!!!!! :D

Please help it would help me alot!!!

Answers

Answer: Total cost for 1 ride = $11. Total cost for 2 rides = $14. Total cost for 3 rides = $17. Total cost for 4 rides = $20. Total cost for 5 rides = $23

Step-by-step explanation:

Help pls it’s urgent

Answers

Answer:

d. -2

Step-by-step explanation:

they're telling you those lines are parallel there are specific knowns about the angles

since it's urgent I won't go into it, but PLS look it up it's super simple and makes sense

nonetheless this means angle 1 and angle 5 are the same value so we can set them equal

3x + 24 = 7x + 32

substract 32 from both sides

3x - 8 = 7x

substract 3x from both sides

-8 = 4x

divide 4 from both sides

-2 = x

Which transformation of a shape may result in a new shape not congruent with the original shape?
O dilation
O reflection
O rotation
O translation

Answers

Answer:

dilation

Step-by-step explanation:

dilation will make the shape larger or smaller which will change the shape.

lines A and B are parallel lines find the measures of angle 1​

Answers

Answer:

33

Step-by-step explanation:

alternate angles are equal

see attached

The measure of ∠1 is 33° .

What is alternate interior angles?

When two parallel lines are crossed by a transversal, the pair of angles formed on the inner side of the parallel lines, but on the opposite sides of the transversal are called alternate interior angles. These angles are always equal.

According to the question

As given , lines A and B are parallel lines

therefore ,

∠1 = 33°  

∠3 = 57°

they are between parallel line and opposite of transversal line

So, they are alternate interior angles and are equal .

Hence, The measure of ∠1 is 33°  .

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Help Please! :(

108 students went on a field trip. Three buses were filled and 27 students traveled in cars. How many students were in each bus?
Please include algebraic equation and answer.

Answers

Answer:

81

Step-by-step explanation:

16B+3.5W = 22 Antoine bikes part of the way on a 22 mile trail and walks the rest of the way. If he spends B hours biking and W hours walking, the trip is modeled by the equation shown above. What is the meaning of the 16B in the equation?​

Answers

Answer:

Antoine bikes for 16B miles before starting his walk.

Step-by-step explanation:

16 is that speed which is covered in B hours by bike by Antoine

What is speed?

Speed is defined as The rate of change of position of an object in any direction. Speed is measured as the ratio of distance to the time in which the distance was covered. Speed is a scalar quantity as it has only direction and no magnitude.

Speed = [tex]\frac{distance}{time}[/tex]

Given,

16B+3.5W = 22 an equation in which B is time covered by bike and W is time covered by walk

Antoine travels partially by bike and partially by walk, and total covered 22

That means 16B is the distance covered by bike, and 16 is its speed.

Hence, 16 is that speed which is covered in B hours by bike.

Learn more about speed:

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Four college friends (one is named Cathy) were all accepted to a graduate school.

Answers

Answer:

Wow that is great

Step-by-step explanation:

is there a question? uhhhmmmmm

In a coordinate plane, plot the points and sketch angle. Write the coordinates of a point that lies in the interior of the
angle and the coordinates of a point that lies in the exterior of the
angle.
A(-5,0)
B(-1,-4)
C(4,2)

Answers

Answer:

A.

Step-by-step explanation:

A Norman window has the shape of a rectangle surmounted by a semicircle. If the perimeter of the window is 8 ft, find the value of x so that the greatest possible amount of light is admitted.

Answers

Answer: x = 2

If x is the width of the window, the value for x that results in the greatest area-- presumably admitting the greatest amount of light.

Step-by-step explanation:

Initial calculations to find a starting value for w.

Determine dimensions that will have a sum of 8 as the perimeter. The length of the arc plus three sides of the rectangle.

The length of the arc is  half the circumference of the circle, the width is the diameter. So, modifying the equation: C= πd,  a = πw/2

Three sides of a rectangle (presumably a square for the initial calculation) 3w

Initial equation: 3w + πw/2 = 8    Substitute 3.14 for π  and solve for w

2(3w) + 2(3.14w/2) = 2(8)   multiply all terms by 2 to eliminate denominator

6w + 3.14w = 16   combine like terms

9.14w  = 16   divide both sides by 9.14

w ≈ 1.75

Calculate the area using this value:

Area of semicircle:  πr²/2   r= 1.75/2  

3.14(.875)²/2 ≈ 1.203

Area of rectangle  1.75 × 1.75 = 3.0625

Total Area with width 1.75  :  4.265 ft²

Increasing the width to 2

The length of the arc becomes 3.14   This is twice the area of the semicircle.

3.14/2 = 1.57

The height of the rectangle reduces to 1.43

1.43 × 2 = 2.86

Total area with width of 2 ft   2.86 + 1.57 = 4.43 ft²

So 2 ft seems to be the optimal width.

Factorise fully
-14x - 8

ease do quick, will mark brainiest!​

Answers

Answer:

-2( 7x+4)

Step-by-step explanation:

-14x - 8

Factor out -2

-2*7x -2*4

-2( 7x+4)

Answer:

2(-7x -4)

Step-by-step explanation:

[tex] - 14x - 8[/tex]

Write -8 as -4×2

[tex] - 14x + 2 \times 4[/tex]

Factor out common term : 2

[tex]2( - 7x - 4)[/tex]

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