Lighfoot Company sells its product for $55 and has variable costs of $30 per unit. Total fixed costs are $25,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. The breakeven point will a. increase from 1,000 units to 1,136 units b. decrease form 1,000 units to 864 units c. increase from 758 units to 1,000 units d. decrease from 1,000 units to 758 unit

Answers

Answer 1

The break-even point for Lightfoot Company will a. increase from 1,000 units to 1,136 units.

What is the break-even point?

The break-even point shows the sales units or sales revenue needed so that the entity does not earn a profit or incur a loss.

At break-even point, there is not profit or loss because the total costs (fixed and variable) equal to the sales revenue.

Data and Calculations:

Selling price per unit = $55

Variable costs per unit = $30

Contribution margin per unit = $25 ($55 - $30)

Fixed costs = $25,000

Increase in variable costs per unit = 10%

New Variable costs per unit = $33 ($30 x 1.1)

New Contribution margin per unit = $22 ($55 - $33)

Break-even point in units = fixed costs/contribution margin per unit

Old break-even point in units = 1,000 units ($25,000/$25)

New break-even point in units = 1,136 units ($25,000/$22)

Thus, the break-even point for Lightfoot Company will a. increase from 1,000 units to 1,136 units.

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Related Questions

are facial movements that convey emotional messages

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By observing a person's emotions one can identify the person's emotions.

General Motors had long-running problems with Chevy Cobalt ignition switches. The switches could disable the emergency airbags, causing accidental deaths. The GM culture discouraged anyone from stepping up and addressing the problem. Mary Barra, the new CEO, made a public commitment to change. After an investigation, two senior managers left the company in 2014. By ________, GM was better able to move forward.

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By  changing leader, GM was better able to move forward.

Who is leader?

A leader is someone that possess leadership skills or someone that control and direct others.

Based on the given scenario since two senior managers left GM, changing leader make it possible for the company (General Motors) to move ahead or forward.

Therefore By  changing leader, GM was better able to move forward.

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Which of these pavement markings separates two lanes traveling in the same direction?

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The pavement markings that separate two lanes traveling in the same direction is A broken white line

What is a Pavement Marking?

This refers to the mark or sign that is on the road to show a particular function for motorists and pedestrians.

Hence, we can see that in the case of two lanes that travel in the same direction, the pavement marking that is used to clearly show this is called a broken white line.

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what is the type of occupation of densist​

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Answer:

Dentist is an occupation related to dental/tooth disease.

Explanation:

It is an occupation related to dentistry which is in the field of health.

ways in wich painting is an innovative idea

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Answer:

ExplanationThey say that it is possible to resist an army of men but not an idea whose time has come. For an artist, generating maritime painting ideas or ideas for any other form of painting is critical. However, no artist flows in continuous inspiration because we have times when the “well” of inspiration dries. But how can you maintain a steady flow of oil painting ideas to express your artistic genius when the occasion demands? The remaining sections of this post will expose some of the ways of doing so.

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What would chester corporation’s market capitalization be if the current stock price fell 10%?.

Answers

If the current share price drops by 10%, Chester Corporation will have a market capitalization of $ 73,668,639 or $ 73.7 million.

Market capitalization = current stock price x total number of issued shares.

I don't know the total number of issued shares or the current stock price, so I can use another question as an example.

Another question is that the total number of issued shares is 3,225,987 and the current share price is $ 20.76. So if the current market capitalization = 3,225,987 x $ 20.76 = $ 66,971,490

stock price rises 10% ($ 22.836), Chester's market capitalization = 3,225,987 x $ 22.836 = 73,668. $ 639 or $ 73.7 million.

What defines stock price?

The stock price is a relative and proportional value of a company's worth. Therefore, it only represents a percentage change in a company's market cap at any given point in time. Any percentage changes in a stock price will result in an equal percentage change in a company's market cap.

What is market capitalization?

Market capitalization, or market cap, is the total value of a company’s shares of stock. Market cap is calculated by multiplying the number of stock shares outstanding by the current share price. Shares outstanding includes all shares — those available to the public as well as restricted shares available to and held by specific groups.

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The strategy of distinguishing one firm’s product from the competing products of other firms is called product.

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product differentiation the strategy of distinguishing one firm's product from the competing products of other firms.

What is product differentiation?

Product differentiation serves as the activities that are been put in place to make the product or service of a company to stand out to the target audience.

It serves as the idea that distinguish what the company sell from that of the competitors to increases brand loyalty as well as sales.

THE COMPLETE QUESTION IS;

__________the strategy of distinguishing one firm's product from the competing products of other firms.

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Spatial layout and functionality increase in importance when:

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Spatial layout and functionality increase in importance when service is provided in a self-service environment.

What is Service?

A Service is an act rendered by either an individual, government, or a firm that could be paid for by an individual or rendered for free.

In the case of spatial layout and functionality, the importance increases when service is provided or in a self-service environment.

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what increases your total loan balance?

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Interest compound is known to increase a person's loan balance.

What is interest?

This is a term that is used to refer to the additional cost of borrowing money. When people borrow they have to pay an interest for that amount in a given period.

When you fail to pay when due, the interest on this loan would continue to rise till you pay up.

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Bill, the owner of FG Kraftco Corp., asks his employee, Megan, for sexual favors in exchange for a raise in her salary. When Megan refuses to entertain his request, Bill reduces her salary. Megan files a charge against Bill with the Equal Employment Opportunity Commission. This case is a ________. Group of answer choices retaliation case res judicata case disparate impact case hostile work environment case quid pro quo case

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Based on the fact that Bill reduced Megan's salary because she refused his sexual advances, this is a quid pro quo case.

Why is this a quid pro quo case?

This is a case where parties are meant to exchange goods or services in a way that both get what they want.

Megan wanted a raise and Bill wanted a sexual favor. When Megan refused the sexual favor, Bill refused the raise. This is therefore a quid pro quo case.

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How to advertise a buisiness on Etsy

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To advertise a business on Etsy it is necessary to use a strategy aligned with your goals, such as using marketing emails and promoting your store on social media.

What are the advantages of digital marketing?

Through advertisements made on the internet, there is greater possibility of reaching and attracting customers in a faster and more dynamic way, through tools that generate value and engagement.

Therefore, to advertise your business on Etsy you need to identify your customer's needs and wants, promoting your product to create value.

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Describe the role of hotel management in the field of tourism. .​

Answers

Answer:

The management of staff members as well as the planning, marketing, coordinating, and administration of hotel services including food and lodging amenities are within the purview of hotel managers.

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An expansionist strategy in regards to capacity is best characterized by A. making small, frequent jumps in capacity expansions.

What is an expansionist strategy?

An expansionist strategy is a growth strategy aimed at:

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Thus, an expansionist strategy in regards to capacity is best characterized by A. making small, frequent jumps in capacity expansions.

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short notes on audit and auditor ​

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Answer:

Audit

Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions.

Auditor

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.

which 3 predefined management report templates will a client see in their company file?

Answers

It should be the answer D

The predefined management report templates that a client sees in their company file will be company overview, financial statements, and sales performance.

What is a management report?

It should be noted that the management report is the collection of data that is used to make better decisions.

In this case, an example of the predefined management report templates is the financial statements which are written records that convey the business activities and the financial performance of a company.

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The standard unemployment rate underestimate unemployment problem.

What is unemployment?

Unemployment occurs when there are no suitable Jobs for People or individual who are willing to work.

This can be due to a decline in the economy of a country or state.

The rate of unemployment may not be easily measured because of the constant increase and decrease.

Therefore, The standard unemployment rate underestimate unemployment problem.

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Data analysts are known to pay attention to the sample size so as to

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Who is a data analyst?

This is a term that is used to refer to a person that is engaged in the handling of data.

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Answers

The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce cyclical unemployment.

What is seasonal unemployment?When the abilities that people in the economy have to provide and the skills that employers need from employees do not match, structural unemployment results.What is frictional unemployment?The time between quitting a job voluntarily and finding another is known as the frictional unemployment period.What is natural unemployment?The lowest rate of unemployment brought on by actual or voluntary economic forces is known as natural unemployment, or the natural rate of unemployment. The number of persons experiencing natural unemployment indicates those who are jobless as a result of the structure of the labor force, such as those who have been displaced by technology or those who lack the necessary skills to find employment.What is cyclical unemployment?The portion of overall unemployment that is specifically caused by cycles of economic expansion and contraction is known as cyclical unemployment. Typically, unemployment increases during economic downturns and decreases during boom times.

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Answers

The business marketers do not serve consumers who purchase products and services for their end-use.

Who are business marketers?

These are entities that sell products/services to other companies that resell or uses them to support their works.

Hence, these business marketers do not serve consumers who purchase products and services for their end-use but they serve other business organizations.

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question content area prepaid expenses are eventually expected to become:

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Prepaid expenses are eventually expected to become expenses when their future economic value expires. This is further explained below.

What are Prepaid expenses?

Generally, Prepaid expenses are simply defined as an asset on the balance sheet since they represent cash spent in advance for products or services.

In conclusion, When the future economic worth of costs that have been prepaid expires, the prepaid amount is written off as an expense.

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When sending a group email, how do you ensure that one or several recipients cannot see the names of other recipients? select only one.

Answers

The option that is used is  Blind Carbon Copy (BCC).

When sending an email message to a big group of individuals, it is advisable to use the Blind Carbon Copy (BCC) option for security and privacy reasons. Whenever user put email addresses in the BCC area of a message, the addresses are hidden from the recipients.

In contrast, any email addresses you include in the To or CC fields are accessible to everyone who gets the message.

If a person's email address is included in the BCC field, they would receive a copy of the email in their inbox as if they were CC'd.

The difference is that their email address would not be visible to the other persons in the email chain, and as a result, they will not receive further Reply or Reply All messages from others in the thread. It's worth noting that BCC receivers can't see each other either. Consider it a stealth mode CC.

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The following transactions apply to Ozark Sales for Year 1:
1. The business was started when the company received $50,000 from the issue of common stock. 2, Purchased inventory of $380,000 on account.
3. Sold for $510,000 cash (NOT including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000.
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales.
5. Paid the sales tax to the state agency on $400,000 of the sales.
6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2.
7. Paid $6,200 for warranty repairs during the year.
8. Paid operating expenses of $78,000 for the year.
9. Paid $250,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Prepare the journal entries for the preceding transactions and post them to the appropriate T-accounts.

Answers

Answer:

Current liabilities: Accounts payable$130,000

Sales tax payable 8,800

Warranty Payable 4,000

Interest payable 667

Notes payable 50,000

Total current liabilities$193,467

Explanation:

How quickly must you file a report with the michigan dnr if property damage exceeds $2,000?.

Answers

The amount of time that is allowed before filing a report with the Michigan Dnr if property damage exceeds $2,.000 is 5 days.

What is Insurance?

This refers to the coverage that a product or service has and subscribed for that is covered in the event of theft, loss, or other unforeseen circumstance.

Hence, we can see that in the case of property damage, the maximum amount of time given to file to the Michigan DNR is five days if the damage to the vessel and other property damage totals more than $2,000.

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If today's exchange rate reflects all relevant public information about the euro's exchange rate, but not all relevant private information, then ____ would be refuted. a.semistrong-form efficiency AND strong-form efficiency b.weak-form efficiency AND semistrong-form efficiency c.strong-form efficiency d.weak-form efficiency e.semistrong-form efficiency

Answers

If today's exchange rate reflects all relevant public information about the euro's exchange rate, but not all relevant private information, then weak-form efficiency and semi strong-form efficiency would be refuted.

What is exchange rate?

An exchange rate is the value of one currency as it relate to another country's currency. Here, it means the rate in which one currency will be exchanged for another.

If today's exchange rate reflects all relevant public information about the euro's exchange rate, but not all relevant private information, then weak-form efficiency and semi strong-form efficiency would be refuted.

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what is the role of profit in a business ?​

Answers

Answer:

Profit plays a huge role in business. business is run to gain profit .the main purpose of the business is to make profit if there is no profit in any business then it can no longer be run as it won't be possible to meet up the demands without profits.

Answer:

Profit equals a company's revenues minus expenses. Earning a profit is important to a business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.

a country's gross domestic product would exceed its gross national product when the ____________.

Answers

A country's gross domestic product would exceed its gross national product when the net of income of resident oversees and income earned by foreign residents is negative.

What is GDP and GNP?

Gross national product (GNP) is the sum of GDP, income earned by residents from overseas investments less income earned by foreign residents.

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

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In economics a computer bought by a firm for its account keeping is classified differently to a computer bought by an individual for playing games and surfing the internet. Explain why.

Answers

Answer:

12

Explanation:

A machine is available 10 hours a day. Each part takes 80 minutes to fabricate and 10 minutes to setup. 10% of the parts made are defective and must go through the machine again to be reworked, during which both setup and fabrication have to be performed again. The machine is idle for any unused time. On average, 5 good parts are made each day. What is the overall equipment effectiveness of the machine? Multiple Choice 0.80 0.75 0.067 0.667

Answers

The overall equipment effectiveness of the machine is 0.75

How to determine the effectiveness?

The given parameters are:

Availability = 10 hours ⇒ 600 minutesFabrication time = 80 minutesSetup time = 10 minutesParts made each day = 5Percentage defective = 10%

The total production time for 5 parts is:

Time = 5 * (80 + 10)minutes

Time = 450 minutes

The time to replace defective parts is:

Time = Percentage defective * Parts made each day * Production time for one part

This gives

Time = 10% * 5 * (80 + 10) minutes

Time = 45 minutes

The value added time is the difference between the production time and time to replace defective part

Value added time = 500 - 45 = 455 min

The overall equipment effectiveness of the machine is then calculated as:

OEE = Value added time/Availability

This gives

OEE = 455/600

Evaluate

OEE = 0.75

Hence, the overall equipment effectiveness of the machine is 0.75

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When a pizza maker lists the price of a pizza as $10, this is an example of using money as a:

Answers

When a pizza maker lists the price of a pizza as $10, this is an example of using money as a unit of account

What is a unit of account?

A unit of account is a standard numerical unit of money used for measuring goods and services.

According to the question, the price of the pizza is a unit of account because it was used to measure the price of the goods.

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Marketers conduct marketing research primarily to:

Answers

Marketers conduct marketing research primarily to  to understand or examine the market associated with a particular product.

Who are Marketers?

Marketers can be regarded as those people that help in promoting a product so that the potential customers can be convinced and make a purchase.

They help to describe  how the audience will react with respect to  product or service and study the market very well.

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