As shown below, a shop purchases and sells a certain type of product. Purchasing price : $10 per unit Selling price : $15 per unit Fixed cost : $1,000 How many units are sold at a “break even” point, where there is neither a profit nor a loss?
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As shown below, a shop purchases and sells a certain type of product.
Purchasing price : $10 per unit
Selling price : $15 per unit
Fixed cost : $1,000
How many units are sold at a “break even” point, where there is neither a
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- Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most popular model of couch varies depending on how many they purchase for sale. For the first 200 couches the cost is $299 each; for the next 200 couches it drops to $250 each; and for every couch after that it costs $225. Create an excel function using the IF function to show the gross profit under the following scenarios: a. b. It sells at a price of $650 and 350 units are purchased for sale and sold It sells at a price of $625 and 300 units are purchased for sale and sold It sells at a price are $700 and 1,000 units are purchased for sale and sold C.# You can buy a product from one of three companies. Company A for $3,200 with a trade discount of 30%, Company B for $2,900 with a trade discount of 20% and 10%, or Company C for $3,450 with a trade discount of 20%, 15%, 5%. Which company has the lowest net price?
- Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,300 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,150. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.96, answer the following. a-1. What is the expected profit of granting credit? b. What is the break-even probability of collection?Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit. These terms will affect the cost of the asset for both the buyer and the seller. Consider the following case: Blue Elk Manufacturing buys most of its raw materials from a single supplier. This supplier sells to Blue Elk on terms of 2/15, net 45. The cost per period of the trade credit extended to Blue Elk, rounded to two decimal places, is___________% Blue Elk’s trade credit has a nominal annual cost—expressed as an annual percentage rate (APR)—of_________%, assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) If Blue Elk’s supplier shortens the discount period by five days, this will _____________(Increase or decrease pick one) the cost of the trade credit.Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,390 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,240. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? multiple choice Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)
- Your firm purchases goods from its supplier on terms of 2.3/14, net 40. a. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 40?. (Round to one decimal place.) b. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 50? (Round to one decimal place.)Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,220 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,070. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.97, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,220 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,070. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.97, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)
- 5. A merchant buys a particular product at P 20 per unit and sells them at P 35 per unit. His fixed cost is P 200. Due to stiff competition, the sale of the product began to decline. The selling price decreased by 2% of the units sold. The variable and fixed cost remains constant. a. Represent the new selling price. b. Determine the TR, TC, and Profit function. c. Find the BEP quantity revenue. d. What is the profit at a sale volume of 100 units?Assume that markup is based on selling price. Calculate the dollar markup and cost. Note: Round your answers to the nearest cent. Item Canon scanner Selling price $ 72 Markup percent 30 % Dollar markup Costa seller's marginal cost of a unit of a good is $20, and a buyer’s marginal benefit from consuming the unit is $40, then the total surplus generated from trading the unit is ________. 1) $10 2) -$20 3) $20 4) Cannot be answered without information about the trading price.