BUSINESS HIGH SCHOOL

An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on selling the device at a wholesale price of $9, write and solve an inequality to determine how many must be sold for the company to make a profit. Show your work. B. The cost of making one device is 10% more than the company predicted. What is the new cost of making one device? How many devices must it now sell at the same wholesale price to make a profit? C. Suppose the company wants to start making a profit after selling the same number of devices you found in part A. What should the new wholesale price be? Explain how you found this price.

Answers

Answer 1
Answer:

Answer:

A) to calculate the break even point we can use the following:

break even point = fixed costs / contribution margin

break even point = 125,000 / (9 - 6.5) = 125,000 / 2.5 = 50,000 units

The company must sell over 50,000 units to make a profit

B) if the unit production costs increase 10%, the new unit cost will be $7.15, and the new break even point will be: 125,000 / (9 - 7.15) = 125,000 / 1.85 = 67,567.6 which we round up to 67,568 units.

Now the company must sell at least 67,568 units to make a profit

C) If the company wants to increase its product price to a level where the break even point is 50,000 units, then the new price should be $9.65.

The contribution margin must be $2.5, so if the production costs are $7.15, we just add $2.5 to get $9.65 per unit.

Related Questions

Pat is something of a cheerleader around his team. He shares his vision and expresses his confidence in his team's ability to achieve his vision. He is quick to compliment and acknowledge team members' accomplishments, and he is enthusiastic about their successes. According to revised path-goal theory, Pat is using a(n) ________ leadership style.
What are "ego" needs?
What type of milk is present in the breasts 7 to 10 days postpartum? A. Colostrum. B. Hind milk. C. Mature milk. D. Transitional milk.
Which statement regarding the "miracle" of war production is most accurate?a.Worker productivity increased, due more to new job opportunities after a long Depression than to any commitment to the war effort.b.Both corporate profits and personal incomes rose, though more flexible smaller firms and wealthier individuals gained the most War.c.production rested on the conversion of peacetime industries, so overall economic output grew very little U.S. achievements in war production.d.proved as important to the Allied victory as success on the battlefield
Looking at both your personal skills and your personal qualities is called a _____. a.talent b.reflection c.self-evaluation d.career assessment

Identify 3 challenges Bricks Construction may encounter when trying to implement their corporate social investment plan in the local community:- Bricks construction is a construction company based in Strand Gauteng. They want to design a Corporate Social Investment plan. They have identified key problem areas where they would like to make a difference.

* Unemployment
* Lack of housing
* Poor / inadequate education and training

Answers

The right answer for the question that is being asked and shown above is that: "Bricks Construction might not have enough funds to implement a project int he community. It also includes the employees' difficulty in managing the program. Because of this, it will be a difficult to sustain most especially economic's downside."

At a cocktail party, you can expect the average person to eat how many hors d'oeurves in two and a halfhours?
A. 8
B. 15
C. 20
D. 10

Answers

That would be C, twenty

Accumulated depreciation of a particular plant asset refers to:half-yearly depreciation
total depreciation.
or neither?

Answers

The answer is : Total depreciation

For example, if you buy the Asset in January 2010 for 100,000 dollars with expected 10 years of usage.

Its annual depreciation would be : 100,000/10 = 10,000 dollars per years

In January 2015, the accumulated depreciation of that asset would be 10,000 dollars x 5 = 50,000 dollars

Sam takes a five-dollar bill from his wallet. He exchanges the bill for four quarters and four one-dollar bills. He then uses the change to buy a bottle of water from a vending machine. Which characteristics of money has Sam best demonstrated?Acceptability, divisibility, and portability

Divisibility, scarcity, and stability of value

Durability, portability, and standard

Medium, scarcity, and value

i think its the first right am i right

Answers

The right answer for the question that is being asked and shown above is that: "Acceptability, divisibility, and portability" Sam takes a five-dollar bill from his wallet. He exchanges the bill for four quarters and four one-dollar bills. He then uses the change to buy a bottle of water from a vending machine. The characteristic of money that Sam has best demonstrated Acceptability, divisibility, and portability

I've taken this on my quiz before the answer is Acceptability, divisibility, and portability

Which of these is not affected by a person's credit score?A. Apartment rentals
B. Credit card rates
C. Ability to get a cell phone contract
D. Federal income tax

Answers

D. Federal income tax

A(n) __________ is an economic structure in which a few very large, very powerful, and very rich owners control an industry or collection of related industries

Answers

Answer:

I guess the answer to the question is capitalist economy
Other Questions
Meredith has $630,000 she wants to save. If the FDIC insurance limit per depositor, per bank, is $250,000, which of these ways of distributing her money between three banks will guarantee that all of her money is insured?
Which of the following is NOT a legitimate use of the Internet for businesses?a. Providing product information to customers on your website b. Managing your corporate image by using social media c. Sending direct e-mail to customers who did not ask for it d. Create customer service tools online for 24 hour product support
A trust deed can have a provision that allows future loans on the property to have priority. This would be called:
4 Goal-based Leadership Styles a) Directive, supportive, participative, and achievement-oriented b) Transformational, laissez-faire, transactional, and charismatic c) Task-oriented, relationship-oriented, servant leadership, and autocratic d) Authoritarian, democratic, laissez-faire, and bureaucratic