Multiple-Level Break-Even Analysis Kucera Associates provides marketing services for a number of small manufacturing firms. Kucera receives a commission of 10 percent of sales. Operating costs are as follows: Unit-level costs $ 0. 05 per sales dollar Sales-level costs $ 400 per sales order Customer-level costs $ 1,000 per customer per year Facility-level costs $ 75,000 per year (a) Determine the minimum order size in sales dollars for Kucera to break even on an order. $Answer 8000 (b) Assuming an average customer places five orders per year, determine the minimum annual sales required to break even on a customer. $Answer 60,000 (c) What is the average order size in (b)

Answers

Answer 1

a) The minimum order size in sales dollars for Kucera to break even on an order is  $8,000.

b) The minimum annual sales required to break even on a customer is $60,000

c)  The average order size in (b) is $12,000.

1. Multiple-Level Break-Even analysis :that calculates break-even points for different levels of the cost structure, including unit-level, sales-level, customer-level, and facility-level costs.
2. Unit-level costs: Variable costs incur red for each sales dollar.
3. Sales-level costs: Fixed costs associated with each sales order.
4. Customer-level costs: Fixed costs a ssociated with servicing each customer per year.
5. Facility-level costs: Fixed costs associated with maintaining the overall facility per year.

Now, let's address each part of your question:

(a) To determine the minimum order size in sales dollars for Kucera to break even on an order, you need to consider the unit-level and sales-level costs. Using the formula:

Break-even sales = (Sales-level costs) / (Commission rate - Unit-level costs)

Minimum order size = ($400) / (0.10 - $0.05) = $8,000.

(b) To determine the minimum annual sales required to break even on a customer, you need to consider customer-level and facility-level costs along with the average number of orders per customer:

Break-even sales per customer = (Customer-level costs + (Sales-level costs × Avg. orders per customer)) / (Commission rate - Unit-level costs)

Minimum annual sales = ($1,000 + ($400 × 5)) / (0.10 - $0.05) = $60,000.

(c) To find the average order size in (b), divide the minimum annual sales by the average number of orders per customer:

Average order size = Minimum annual sales / Avg. orders per customer

Average order size = $60,000 / 5 = $12,000.

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Related Questions

Why are the pests and diseases biggest obstacle in vegetable production​

Answers

Answer:

Vegetable production worldwide is constrained by pests and diseases which effects are exacerbated by climate change and variability. High atmospheric temperatures and elevated carbon dioxide increases pest development, survival of pests and distribution of pest to new areas

Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resources

Answers

Answer:

AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.

Answer:

Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resources

Explanation:

AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.

Tara was shopping for a new pair of shoes for work. The salesperson was very helpful and friendly, bringing Tara some styles she hadn't thought to try on but that she ended up really liking. Noticing Tara's University of Wisconsin tee-shirt, the salesperson said that she was a student there. Tara ended up buying three pairs of shoes rather than the one pair she had planned on. Tara's experience shows the effect of ________ on consumer behavior.

Answers

Answer:

salespeople

Explanation:

In the context, Tara wishes to buy new shoes for her work. She went to shoe shop and try out different shoes. The salesperson is helping her a lot in finding out her new pair of shoes and is also showing Tara some of the latest designs that are available in the shop.

The salesperson is polite and helpful to her. Tara found out that the salesperson also belonged to the same university where Tara studied. And she ended up in buying three pair of shoes instead of one. This shows the effect of the salesperson on the consumer behavior of Tara.

The economy has an annual inflation rate of 3. 5 percent. It will take approximately how many years for the price level to double?.

Answers

Answer:

the answer is 20 years

What a property sells for is its
a) market value.
b) sales price.
c) replacement value.
d) loan value.

Answers

A property sells for is its Market Value. Hence, option a) is correct.

Market value represents the estimated worth of a property based on various factors such as its location, condition, size, and current market conditions.

It is the amount that a willing buyer and a willing seller agree upon in a transaction. Market value is influenced by factors such as supply and demand, comparable sales in the area, and the overall state of the real estate market.

If there is high demand for properties in a particular area and limited supply, the market value is likely to be higher. Conversely, if there is an oversupply of properties or low demand, the market value may be lower.

It is important to note that market value may fluctuate over time as market conditions change.

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Money Matters Help

You just got your first job and are planning to rent your own apartment. what steps would you follow to make this process easier?

Answers

Explanation:

A Step by Step Guide Through the Rental Application Process

Fill out a rental application. Let's start with the basics: the apartment application itself. ...

Pay the apartment application fee. ...

Expect credit and background checks. ...

Prove you can pay rent. ...

Figure out if you need a co-signer. ...

Show them that you are an agreeable renter. ...

Have good personal references. ...

Sign the lease.

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Angelo was all set to start his new business. Although he did not have as much cash as he would have liked, he figured that once the business got going, the cash generated from sales would keep the business running. He was surprised, however, that sales weren't as strong as he thought and now he is cash-strapped. Angelo is experiencing a common problem known as ______.

Answers

Answer:

The answer is undercapitalization

Explanation:

It is evident that the business is undercapitalized. Undercapitalization is a situation when a company/firm does not have enough or the needed funds to run the business operations or pay his creditors.

Angelo is undercapitalized because her sales are not generating the needed cash flows coupled with her inadequate capital. So she needs to raise enough capital or develop new strategy to increase her sales.

What is the best way to use a credit card to build your credit history?

Answers

Answer:

All you have to do is pay off your credit card bill in full and on time each month, and just keep doing that.

Explanation:

When there are major changes in strategy, senior management, business structure, or operations, evaluations of controls is usually performed by a directors b. supervisors c. management d. internal auditors

Answers

When there are major changes in strategy, senior management, business structure, or operations, evaluations of controls are usually performed by D) internal auditors.

Internal auditors are responsible for evaluating and assessing the effectiveness of an organization's internal controls, including those related to changes in strategy, senior management, business structure, or operations.

They can provide independent and objective assessments of the organization's risks and controls, identify potential areas of weakness, and make recommendations for improvements.

In addition, they can provide assurance to senior management and the board of directors that the organization's internal controls are effective and operating as intended.

While supervisors and management may also be involved in evaluating controls, internal auditors are specifically trained and dedicated to this function, making them the most appropriate choice for this task.

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what does a formula do in a spreadsheet program

Answers

Answer:

Hwlo

Explanation:

Formulas – Adding, Subtracting, Multiplying and Dividing

With a spreadsheet you can insert a formula that will instantly add, subtract, multiply or divide numbers in columns or rows. To do this you select a cell in a new column or row and then type in a formula

basically jim walked to walk and walkin be walker yuhh

High government expenditures can lead to a bigger

revenue.
stimulus.
deficit.
surplus.

Answers

Answer:

deficit.

Explanation:

The term deficit describes the scenario where government expenditures exceed the projected revenues.  It is when the government intends to spend more money than it can raise.  Therefore, a deficit is when the government expenses are more than the revenue collected.

Defic contrasts with a surplus, which is a situation where revenues exceed expenses. The government borrows from the domestic and international markets to cover the shortfall associated with a

High government expenditures can lead to a bigger : Deficit

What is government expenditure?

Government expenditure is the  purchase of goods and services, which comprises public consumption and public investment.

The term deficit describes the scenario where government expenditures exceed the projected revenues. It is when the government intends to spend more money than it can raise.

Deficit arises because the government has engaged in extra spending projects like :

Infrastructure spending.Grants to businesses.

Therefore, high government expenditures can lead to a bigger deficit.

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One way to demonstrate a potential robber that dollar general employees care about their store is to

Answers

One way to demonstrate to a potential robber that Dollar General employees care about their store is to Option C. keep a clean, in-stock, and recovered store.

By keeping the store clean and organized, the employees are indicating that they care about the appearance and reputation of the store and are committed to keeping it looking its best for customers and the community. A clean and organized store can also indicate that employees are attentive and focused on their work, which can deter potential robbers who may be looking for an easy target.

In addition, a well-stocked and recovered store can indicate that the employees are efficient and skilled at their job, which can also deter potential robbers who may be looking for a vulnerable or disorganized store. Wearing a proper uniform can also demonstrate that employees care about their store, as it shows that they are representing the company and taking pride in their appearance.

Arriving for work on time and being punctual can indicate that employees are committed and dependable, which can also contribute to a positive impression of the store and its employees. Taking breaks on time can also indicate that employees are following company policies and procedures, which can help to maintain a professional and well-managed store.

Overall, demonstrating care and commitment to the store can help to create a positive and professional image of Dollar General, which can deter potential robbers and create a safer and more welcoming environment for customers and employees alike. Therefore, the correct option is C.

The question was incomplete, Find the full content below:

One way to demonstrate to a potential robber that Dollar General employees care about their store is to:

A. Take a break on time

B. Wear a proper uniform

C. Keep a clean, in-stock, and recovered store

D. Arrive for work 10 minutes early​

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an asset (not an automobile) put in service in june 2021 has a depreciable basis of $28,000 and a recovery period of 5 years. assuming bonus depreciation is used, half-year convention and no election to expense is made, what is the maximum amount of cost that can be deducted in 2021? a. $5,600 b. $14,000 c. $24,000 d. $28,000 e. $40,000

Answers

The maximum amount of cost that can be deducted in 2021 is $28,000. The correct option is d.

What is depreciation?

Depreciation is a technique for methodically lowering a fixed asset's recorded cost until the asset's value is zero.

The difference between the purchase price and installation costs of an asset that can be depreciated and its salvage value is the asset's depreciable value.

There are several ways to calculate depreciation, but the straight-line method is the most popular and straightforward.

The maximum amount of cost that can be deducted is the full amount of $28,000.

Thus, the maximum amount of cost is d. $28,000.

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ASAP PLEASE-------------
Cameron has decided to diversify his investments in the following way:
$3,000 in an account earning 2.7% simple interest
$5,000 in a savings account earning 1.8% interest compounded annually
$5,000 in a certificate of deposit earning 3.9% interest compounded quarterly
How much total interest will Cameron earn on his investments at the end of 3 years?

a. $530.87
b. $665.57
c. $973.30
d. $1,135.30


Anyone know how to do this?

Answers

No le entendí pero me ayudes a otros porque no tengo nadar

Answer:

D.) $1,135.30 at the end of 3 years

Explanation:

First method:

Formula for simple interest is I = P * R * T.

In this instance P = 3,000, R = 2.7, T = 5.

\(I=(3000)(0.027)(5)\\= $405\)

Second method:

The formula for annual compounding is \(A=P(1+r)^t\), where A = amount, P = principal (initial) amount, r = rate of growth, t = years.

\(A=5000(1+0.027)^3\)

=\(5416.0334\)

Third method:

The formula for periods within a year is \(A=P(1+\frac{r}{n})^n^t\). There is now the added value of n (number of periods per year). Since there are 3 quarters per year, n will be 4.

\(A=5000(1+\frac{0.039}{4})^4^*^3\\=5000(1.00975)^1^2\\= 5617.4129\)

Sum after 3 years is $1,135.30

Mangroves and coral reefs are examples of ________ in the ocean.

Answers

Answer: I hope this is helpful

Explanation:

Sea is the answer because it shows that what apart of I think this is the answer

Mangroves and coral reefs are examples of marine ecosystem in the ocean.

What is an ecosystem?

An ecosystem is a group or community of living organisms  with the non-living components and their interaction with each other and the surrounding environment.

An ecosystem is a structural and functional unit of ecology where the living organisms interact with each other and their surrounding environment.

The structure of an ecosystem is characterized by the organization or interaction of both biotic and abiotic components. It  includes the distribution of energy in the environment and also the climatic conditions prevailing in that particular environment.

Like mangroves and coral reefs are examples of marine ecosystem in the ocean.

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one complication that tends to prolong recessionary gaps is that nominal wages

Answers

An explanation of how nominal wages can prolong recessionary gaps.

A recessionary gap occurs when an economy's real GDP falls below its potential GDP, indicating that resources are underutilized and the economy is underperforming. One factor that can prolong recessionary gaps is nominal wages, which are the wages paid to employees without adjusting for inflation.

When an economy experiences a recession, the demand for goods and services decreases, leading to lower production levels and reduced employment. In a flexible labor market, nominal wages would ideally adjust downwards in response to the reduced demand for labor. Lower wages would then make it more affordable for firms to hire workers, increasing employment and eventually closing the recessionary gap.

However, nominal wages can be sticky, meaning they do not easily adjust in response to economic conditions. This stickiness can be due to various reasons, such as contracts, minimum wage laws, or workers' reluctance to accept lower wages. When nominal wages remain high during a recession, firms are less likely to hire new workers, leading to persistent high unemployment and a prolonged recessionary gap.

To sum up, nominal wages can prolong recessionary gaps when they do not adjust downwards in response to a decrease in labor demand. This stickiness makes it more expensive for firms to hire workers, leading to high unemployment and a slower recovery of the economy.

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Select the correct answer.
Job opportunities for dietitians are expected to grow this decade.
A. True
B. False

Answers

The answer is "A" aka true.

Best Coffee Enterprises is dealing in a variety of coffee like Expresso, Cappuccino, and Caffe latte etc. It has several outlets in the city. It has a good financial standing and enjoys a good reputation in the market. It purchases high-quality coffee beans from Global Traders and pays them at a future date. Briefly explain the source of finance given by Global Traders to Best Coffee Enterprises.

Answers

Different sources of finance exist operated by various companies. Global Traders exist offering Trade Credit as a source of finance to the Best Coffee enterprises. Trade credit exists as a business-to-business (B2B) arrangement in which a customer can buy goods without spending cash up front, and delivering the supplier at the latest scheduled date.

What are the features of trade credit?It exists referred to as the payment holds authorized by the creditor for a specified period for their raw material.It exists usually comprehended as an instant source of finance.It usually occurs in B2B businesses where the payees exist and desired to pay within their established deadline.

Trade credit exists as a business-to-business (B2B) arrangement in which a consumer can buy goods without spending cash up front, and paying the supplier at a later scheduled date. Usually, companies that work with trade credits will give customers 30, 60, or 90 days to pay, with the transaction recorded through an invoice.

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The relationship between increasing prices and decreasing money value is called

Answers

Answer:

Inflation occurs when prices rise across the economy, decreasing the purchasing power of your money.

Explanation:

Can I please get on the brainlist

Inflation because that’s when the worth of money comes down since there are so many and the prices start to go up

The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Oxy Cleaner Sonic Cleaner Sales Price $ 90 $ 50 Variable cost per unit 45 20 Total demand for Oxy is 11,300 units and for Sonic is 7,300 units. Machine time is a scarce resource. During the year, 63,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 3.0 machine hours per unit.
What is the maximum contribution margin Garrison can achieve during a year?
A $1,382,000.
B $1,197,000.
C $727,500.
D $588,900.

Answers

The maximum contribution margin Garrison can achieve during a year is B $1,197,000. Option B. is correct.

To calculate the maximum contribution margin, we need to determine the contribution per unit for each product and then multiply it by the total number of units sold for each product.

For Oxy Cleaner:

Sales Price = $90

Variable Cost per unit = $45

Contribution per unit = Sales Price - Variable Cost per unit = $90 - $45 = $45

Total demand for Oxy Cleaner = 11,300 units

Machine hours required per unit of Oxy Cleaner = 5 machine hours

Total contribution for Oxy Cleaner = Contribution per unit * Total demand for Oxy Cleaner = $45 * 11,300 = $508,500

For Sonic Cleaner:

Sales Price = $50

Variable Cost per unit = $20

Contribution per unit = Sales Price - Variable Cost per unit = $50 - $20 = $30

Total demand for Sonic Cleaner = 7,300 units

Machine hours required per unit of Sonic Cleaner = 3.0 machine hours

Total contribution for Sonic Cleaner = Contribution per unit * Total demand for Sonic Cleaner = $30 * 7,300 = $219,000

To calculate the maximum contribution margin, we add the contributions from both products:

Maximum Contribution Margin = Total contribution for Oxy Cleaner + Total contribution for Sonic Cleaner = $508,500 + $219,000 = $727,500

Therefore, the maximum contribution margin Garrison can achieve during a year is B $1,197,000.

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how do firms in an oligopolistic market set their prices? use specific examples from the simulations or from the textbook to support your claims

Answers

Oligopolistic firms set their prices based on various factors such as price charged by competitors, market demand supply, production cost. Examples such as Price leadership, product differentiation, and price collusion are some of the strategies used by oligopolistic firms to set prices.



Price leadership is a common strategy used by oligopolistic firms to set their prices. The leading firm in the market sets the price, and other firms follow suit. For example, in the airline industry, firms such as Delta, American Airlines, and United Airlines dominate the market. They set their prices based on market demand and supply, production costs, and the price charged by competitors.



Another strategy used by oligopolistic firms to set their prices is product differentiation. This involves creating a unique product that stands out from the competition and charging a premium price for it. For instance, Apple Inc. differentiates its products from competitors by focusing on design and innovation, and they charge a premium price for their products.


Oligopolistic firms may also engage in price collusion, which involves cooperating with competitors to set prices artificially high. Price collusion is illegal in most countries, and firms found guilty of this practice may face heavy fines and penalties.

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a decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n):

Answers

A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a legal and unethical decision

Something that is "illegal" is something that violates the law, whereas something that is "unethical" is something that is ethically wrong. The law serves as the deciding factor in an illegal act. The man's own conscience serves as the decisive factor in cases of unethical behavior. While an unethical act may be against morality, it may not be illegal.

There might not be a single correct or wrong decision. A legal viewpoint might not necessarily be equivalent to an ethical viewpoint.

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What are some good colleges in New Orleans that arent expensive??

Answers

Answer:

southern university, Dillard university, university of new orleans

what is 5669-56+6-1+76-1234567890

dont answer

Answers

Answer:

okay

Explanation:

Answer:

-1234562196

Explanation:

What is the formula for the rule of 72?

Answers

The formula for the rule of 72 is:

Number of years to double investment = 72 / annual interest rate

This formula provides an estimate of the number of years it takes for an investment to double in value, given a fixed annual interest rate.

In the chi-square test of independence, large values of the chi-square test statistic indicate a cause/effect relationship between the two categorical variables.

a. trueb. false

Answers

B) false, Large values of the chi-square test statistic in the chi-square test of the independence imply a cause-and-effect link between the two category variables.

What does the chi-square statistic with high values mean?

The chance that there is an actual significant difference increases with increasing Chi-square value. The groups we are examining differ significantly from the one another.

What does the chi square independence test reveal?

As an inferential statistical test, the chi-square test of independence enables you to infer the information about a population from a sample. It enables you to determine whether two variables are connected within the population.

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Fill The Blank ?world foreign direct investment flows between 1990 and 2017 increased by 600 percent. if a company decides to set up a new operation in a foreign country, what the company has been involved with______

Answers

Fill The Blank ? World foreign direct investment flows between 1990 and 2017 increased by 600 percent. if a company decides to set up a new operation in a foreign country, what the company has been involved with Foreign Direct Investment.

Foreign Direct Investment (FDI) is an investment made by a company or entity in one country into business interests located in another country. It occurs when a company invests directly in facilities such as factories, real estate, or equipment in another country.

FDI is a major driver of economic growth and development, providing companies with access to new markets, and allowing them to benefit from lower production costs and increased efficiency.

Over the past three decades, FDI flows have increased dramatically, with global FDI flows increasing by 600 percent between 1990 and 2017. FDI can also bring with it new technologies and management practices, which can help to boost productivity and competitiveness.

FDI can also create jobs and spur economic growth in the host country, as companies establish new operations and hire local workers. Additionally, FDI can help to increase exports, as countries can benefit from new markets, access to resources, and improved access to capital.

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Can anyone here help me with a P.O.B sba??

Please​

Answers

Answer:

que

Explanation:

Yeah I can help you with your P.O.B sba

When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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Mason bought a rotisserie in preparation for a party he was planning. When he put a chicken on the rotisserie, it would not rotate, but stayed in one position where it burned the chicken on one side a left it raw on the other. Does Mason have any recourse?

Answers

Answer:

Yes Mason has recourse

Explanation:

In this scenario Mason bought a rotisserie that did not work as expected. That is it did not rotate as it should thereby causing burning of the chicken.

Even is the seller of the rotisserie did not give a warranty to cover the product, there is an implied warranty that covers the use of goods.

Implied warranty is the minimum requirement expected from the use of a product. For example a.television is expected to come on when in use..

So Mason has a recourse because he is covered by implied warranty.

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