Business, 06.03.2020 09:00 juliana211

Bonita Industries is planning to sell 780000 units for $1.50 per unit. The contribution margin ratio is 20%. If Bonita will break even at this level of sales, what are the fixed costs

Answers: 3

Show answers

Answers

Answer from: kony345p

Fixed Costs234,000

Fixed costs at Break even point will be equal to Contribution value.

Explanation:

Bonita Industries is planning to sell 780,000 units for $1.50 per unit.

The contribution margin ratio is 20%. If Bonita will break even at this level of sales, what are the fixed costs

Sales 780, 000 x 1.50 = 1,170,000

Variable costs @ 80% = 936,000

Contribution @ 20% = 234,000

Fixed Costs234,000

Profit NIL

Answer from: missdakotacheyenne

The fixed costs for Bonita Industries are $234000

Explanation:

Break Even Point is when Bonita Industries neither makes a profit or a loss.

The Break Even Point in Units is Calculated as follows:

B.E.P=Fixed Costs/Contribution per unit

It is already given that Bonita will break even at 780000

The Break Even Point in Revenue terms is Calculated as follows:

B.E.P=Fixed Costs/contribution margin ratio

Break Even Point in Revenue terms is = $ 1170000 ($1.50×780000)

The Missing Figure is now the Fixed Cost which is calculated as

Tip : Make Fixed Costs the Subject of formula

Fixed Cost = Break Even Point in Revenue× contribution margin ratio

=$ 1170000×20%

=$234000

Answer from: Quest

no u can still get a job there u just have to be determined.

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Another question on Business

Business, 22.06.2019 01:10

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

Answers: 3

Answer

Business, 22.06.2019 05:30

U.s. internet advertising revenue grew at the rate of r(t) = 0.82t + 1.14 (0 ≤ t ≤ 4) billion dollars/year between 2002 (t = 0) and 2006 (t = 4). the advertising revenue in 2002 was $5.9 billion.† (a) find an expression f(t) giving the advertising revenue in year t.

Answers: 1

Answer

Business, 22.06.2019 20:00

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be:

Answers: 1

Answer

Business, 22.06.2019 21:00

There is just one person in our group, silvia, who seems to have radically different ideas about how to complete our project. she seems to purposely disagree with the majority opinions of the rest of us though yesterday she said something that made a lot of sense to us solve our production problem. i suggested to the entire group today that we hear silvia’s suggestions and asked silvia to share in-depth more of what she said yesterday. i am using which adaptive leader behavior?

Answers: 2

Answer

You know the right answer?

Bonita Industries is planning to sell 780000 units for $1.50 per unit. The contribution margin ratio...

Questions