Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

q1. Determine the firms break-even quantity of sofas. Show work.q2. put the Following measures at the break-even quantity.ATC_______AFC ________ AVC___________MC______q3. Determine the firm's new break-even

q1. Determine the firms break-even quantity of sofas. Show work.q2. put the Following measures at the break-even quantity.ATC_______AFC ________ AVC___________MC______q3. Determine the firm's new break-even quantity if it builds a new plant that raise fixed costof manufacturing to $10,000 but decreases variable manufacturing cost to $300 per sofa.Assume that average variable selling expenses, fixed selling expenses, and that the selling price of sofas remain the same as in A.

image text in transcribed
Sales (50 sofas/week at $1000 per sofa). $50,000 Less: Cost of goods (sofas) sold Variable cost of manufacturing sofas. . . . ... .... $20,000 Fixed manufacturing cost... ..... $5,000. . . . . . .. . .. $25,000 Equals: Gross margin....... $25,000 Less: Selling and Administrative cost: Variable Selling and Administrative costs.. $10,000 Fixed Selling and Administrative costs. $5,000 $15,000 Net income... $10,000

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_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

The Economic Development Of Latin America Since Independence

Authors: Luis Bértola, Luis Bértola

1st Edition

0191638242, 9780191638244

More Books

Students also viewed these Economics questions

Question

What was the influence of the strength of the treatment?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago