Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, Yerke sold 12,000 gyms and 4,000 tree houses. Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. What is the sales revenue at break-even?

Question

11-03-2020
Business

contestada

Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, Yerke sold 12,000 gyms and 4,000 tree houses. Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. What is the sales revenue at break-even?

Respuesta :

Otras preguntas

You are at a crowded movie theater, enjoying a great film. All of a sudden, someone yells out, “Fire!” People run out of the theater. There is no fire in the th

And one well written paragraph, explain how you can put raw data into excel and turn it into something useful that could be used in different Microsoft office a

1. Calculate the doubling time for each of the following populations: a. Population A, which has an intrinsic growth rate (r) of 7%. b. Population B, which has

Which number line is equivalent to the given number line?

What is 6.849 times ten to the fourth power minus 2.329 times ten to the negative second power express the answer in scientific notation rounding to 2 decimal p

I need help with this please

According to the online content article, what is the main difference between a culture and a civilization? A. There is no difference between the two terms. B. C

The Booster Club has a goal of raising at least $400. The Club has already raised $100. The Booster Club is sponsoring a pancake breakfast and charging $5.00 pe

Most of the western United States, except the Pacific states, saw population growth during the mid-2000s. What is the best explanation for the lack of growth in

Find the equation of the linear function represented by the table below in slope-intercept form X 0,1,2,3,4 Y -2,5,12,19,26

akiran007 akiran007 · Answer 1 · 2020-03-16T05:00:02+01:00

Answer:

Break Even Sales Volume in Dollars = $ 362,500

Explanation:

Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)

= 253750/ 1- (908,000/3040,000)

= 253750/ 1-0.298

= 253750/ 1-0.3

= 253750/ 0.7

= $ 362,500

Working for Extra units

Total Variable Cost for 8000 units = $ 908,000

Variable Expenses for jungle gyms $ 90 *12000= 108,0000

Variable Expenses for tree houses $100 *8000= 800,000

Total Sales for 8000 units =

Jungle gyms $ 120 *12000= 144,0000

Tree houses $200 *8000= 1600,000

Total Sales $ 3040,000

Working

Total Cost

Variable Expenses for jungle gyms $ 90 *12000= 108,0000

Variable Expenses for tree houses $100 *4000= 400,000

Fixed Expenses $253,750

Total Cost $1733750

Total Sales

Jungle gyms $ 120 *12000= 144,0000

Tree houses $200 *4000= 800,000

Total Sales $ 2240,000

jepessoa jepessoa · Answer 2 · 2020-03-16T22:26:17+01:00

jepessoa jepessoa

16-03-2020

Answer:

$665,000

Explanation:

total variable costs = (12,000 x $90) + (8,000 x $100) = $1,080,000 + $800,000 = $1,880,000

total sales = (12,000 x $120) + (8,000 x $200) = $1,440,000 + $1,600,000 = $3,040,000

sales revenue at break even = total fixed costs / [1 - (total variable costs / total sales)] = $253,750 / [1 - ($1,880,000 / $3,040,000)] = $253,750 / (1 - 0.618) = $253,750 / 0.3816 = $665,000

Answer Link