Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Nyota Corp sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70

1. Nyota Corp sells two products. Product A sells for $100 per unit, and has unit variable costs of $60. Product B sells for $70 per unit, and has unit variable costs of $50. Currently, Nyota sells three units of product B for every one unit of product A sold. Nyota has fixed costs of $750,000. How many units would Nyota have to sell to earn a profit of $250,000?

a.

30,000 units of A and 10,000 units of B

b.

40,000 units of A and 40,000 units of B

c.

20,000 units of A and 20,000 units of B

d.

10,000 units of A and 30,000 units of B

2. Piazza Corp has sales of $400,000, a contribution margin ratio of 40%, and a profit of $40,000. If 20,000 units were sold, what is the break-even point in units?

a.

20,000

b.

15,000

c.

12,000

d.

8,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Safe Hiring Audit The Employers Guide To Implementing A Safe Hiring Program

Authors: Lester S. Rosen

1st Edition

1889150517, 978-1889150512

More Books

Students also viewed these Accounting questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago