Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

John and Tim are competitors and they both started their shops at the same time. They both sell kitchen utensils. John's fixed costs are

John and Tim are competitors and they both started their shops at the same time. They both sell kitchen 

John and Tim are competitors and they both started their shops at the same time. They both sell kitchen utensils. John's fixed costs are $45000 while that of Tim are $56000. Their contribution margins per unit are $10 and $14 respectively. Which one of them breaks-even earlier in terms of the units sold? O Tim, as he sells 500 more units O Tim, as he sells 500 less units O John, as he sells 500 less units O They both break even at the same time O John, as he sells 500 more units.

Step by Step Solution

3.31 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below To determine which one of them bre... 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_2

Step: 3

blur-text-image_3

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

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students explore these related Accounting questions

Question

Verify Equation (9.36).

Answered: 3 weeks ago