This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Fixed costs for a product are 50,000. The product itself sells for 5.00 and it costs 3.00 to make ... (Read 82 times)

sc00by25

  • Hero Member
  • *****
  • Posts: 596
on: Jul 6, 2018
Fixed costs for a product are 50,000. The product itself sells for 5.00 and it costs 3.00 to make each product. What is the break-even point for the product?
 
  A) 100,000
  B) 10,000
  C) 50,000
  D) 25,000

Question 2

A company has a current ratio of 0.85 to 1. What should a manager in the company worry about?
 
  A) The company has too many assets and is not using them efficiently.
  B) The company has too much inventory.
  C) The company may start to have trouble paying salaries.
  D) The company is paying salaries that are too high.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nyrave

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: D
Explanation: Plugging in the variables for the equation BE = TFC/(P - VC), you get BE = 50,000/(5 - 3), or 25,000 for BE. This means that the company must make 25,000 units of the product to begin making a profit.

Answer to Question 2

Answer: C
Explanation: A current ratio that is significantly less than 1.0 means that the company has too many liabilities relative to its assets. With this kind of liquidity problem, the company may experience difficulty in having enough cash to pay off its short-term obligationsthings such as taxes, accounts payable, and salaries.


sc00by25

  • Member
  • Posts: 596
Reply 2 on: Jul 6, 2018
Excellent

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Everyone has one nostril that is larger than the other.

A, Unequal pupils; B, dilated, fixed pupils. A, Unequal pupils; B, dilated, fixed pupils.
The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us
Biomass can be processed to make vehicle fuels Biomass can be processed to make vehicle fuels
Tuition Costs Tuition Costs
To make a 3.00 m solution, one could take 3.00 moles of solute and add To make a 3.00 m solution, one could take 3.00 moles of solute and add
Using the Ti plasmid to make a transgenic plant Using the Ti plasmid to make a transgenic plant
Video: The Nerve Impulse

For a complete list of videos, visit our video library