Tom's Sports Wear is a retailer of sports hats located in Atlanta, Georgia. Although Tom's carries numerous styles of sports hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Tom's has been great. However, the business is very competitive, and Tom has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other sports wear stores. Also, because of the rapid growth in sales, Tom is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople.

Sales price $ 31.00
Per-unit variable costs:
Invoice cost 17.05
Sales commissions 4.05
Total per-unit variable costs $ 21.10
Total annual fixed costs:
Advertising $ 23,100
Rent 28,200
Salaries 124,200
Total fixed costs $ 175,500

The annual breakeven point in unit sales is calculated to be:

Answers

Answer 1

The annual breakeven point is $550157

Given that the Sales price is $ 31.00, Per-unit variable costs: Invoice cost is 17.05, Sales commissions is 4.05, Total per-unit variable costs is $ 21.10, Total annual fixed costs: Advertising is $ 23,100, Rent is 28,200, Salaries is 124,200 and Total fixed costs is $ 175,500.

The break-even point is your total fixed cost divided by the difference between the unit price and the variable cost per unit.

The sales price is $31 and the total variable cost is $21.10.

Now, we will find the Contribution margin by subtracting the Total variable cost from the sales price, we get

Contribution margin= Sales price-Total sales price

Contribution margin=31-21.10

Contribution margin=9.9

Further, we will find the contribution margin ratio by dividing the contribution margin by Sales price, we get

contribution margin ratio=contribution margin/Sales price

contribution margin ratio=9.9/31

contribution margin ratio=0.319

contribution margin ratio=31.9%

Furthermore, we will find the break-even point, we get

Break-even point=Fixed cost/contribution margin

Break-even point=175500/9.9

Break-even point=17727.27

Now, we will find the break-even sales in dollars, we get

Break-even sales=Fixed cost/contribution margin ratio

Break-even sales=(175500/31.9)×100

Break-even sales=550157

Hence, the annual breakeven point in unit sales is calculated to be $550157.

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Related Questions

Ally bought 5 different cakes for her birthday. His friends ate 3 1/4 of the amount of cake. Then he gave 1/2 of the cake to his grandmother. How much cake does Ally have left?

Answers

Answer:

7/8 of a cake

Step-by-step explanation:

4 4/4 - 3 1/4 = 1 3/4

7/4 x 1/2 = 7/8

Business Maths
1703
The following problems were in your worksheet on direct and inverse proportion. Reformulate the
relationships as algebraic expressions and remember to define the variables you use. You do not
have to solve the expressions.
5. The students in class usually drink a lot of water to help with their studies. I have found that
with five students in the class at least 30 litres of water is needed. How much water will be
needed when there are 30 students in the class?​

Answers

Answer:

30/5=6

6*30=180

So 180 litres

A gym teacher placed golf balls into 9
buckets so that each bucket had at least 15
balls. How many total golf balls are there?

Answers

Answer:

135

Step-by-step explanation:

9 x 15 = 135

The total number of the golf ball in all buckets is 135 balls using multiply system

Multiply based problem:

What information do we have?

Number of buckets = 9

Number of golf ball in each bucket = 15

Total number of golf ball in all buckets = Number of buckets × Number of golf ball in each bucket

Total number of golf ball in all buckets = 9 × 15

Total number of golf ball in all buckets = 135 balls

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Find the perimeter, in inches, of the parallelogram

Answers

perimeter of a parallelogram

= 2(l + b)

= 2(8 inches + 6 inches)

= 2(14 inches)

= 28 inches

28 inches

Step-by-step explanation:

length = 8 inches breadth = 6 inchesperimeter of parallelogram = 2 ( length + breadth )= 2( 8 + 6 )= 2 ×14= 28 inches

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Help needed with this

Answers

Answer:

Choice 3 is not a function.

For a set of coordinates to be a function, there must be exactly one y-value for every x-value.

For choice 3, we see that the x-coordinate of "1" has two y-values, 3, and 7.

This means, that choice 3 is NOT a function.

Let me know if this helps!

Classify each special right triangle in the length ratio of (Side1 : Side2 : hypotenuse)

Answers

Answer: i added a pic of the answers

Step-by-step explanation:

Is borrowing money a

Delegated power
Reserved power
Concurrent power

Answers

I believe that it is a concurrent power

Answer:

C. concurrent power

Step-by-step explanation:

Such powers are called concurrent powers. These include the power to tax, spend, and borrow money. State governments operate their own judicial systems, charter corporations, provide public education, and regulate property rights.

Find the slope of the line that passes through (1, 14) and (4,10),
Simplify your answer and write it as a proper fraction, improper fraction, or integer,

Answers

the slope is -4/3. 14-10=4, 1-4=-3

Answer: the slope is -4/3

Step-by-step explanation:

What type of number is 2?
Choose all answers that apply:
A
Whole number
B
Integer
C
Rational
D
Irrational

Answers

The answer Whole number

A production facility employs 10 workers on the day shift, 8 workers on the swing shift, and 6 workers on the graveyard shift. A quality control consultant is to select 3 of these workers for in-depth interviews. Suppose the selection is made in such a way that any particular group of 3 workers has the same chance of being selected as does any other group (drawing 3 slips without replacement from among 24).

Required:
a. How many selections result in all 5 workers coming from the day shift?
b. What is the probability that all 5 selected workers will be from the day shift?
c. What is the probability that all 5 selected workers will be from the same shift?
d. What is the probability that at least two different shifts will be represented among the selected workers?
e. What is the probability that at least one of the shifts will be unrepresented in the sample of workers?

Answers

Answer:

252 ; 0.00593 ; 0.0074 ; 0.9926 ; 0.347

Step-by-step explanation:

A.)

n = 10 ; r = 5

Required outcome :

nCr = n! ÷ (n-r)!r!

10C5 = 10! ÷ (10-5)!5!

(10*9*8*7*6) / (5*4*3*2*1)

= 252

B.)

Total possible outcome : 24C5 = 42504

P(all will be from day shift) = 252 / (24C5) = 0.00593

C.)

P(all will be from the same shift) :

[(10C5)+(8C5)+(6C5)] ÷ 24C5

(252 + 56 + 6) / 42504 = 0.0074

D.)

Probability that at least 2 different shift will be represented :

1 - P(all will be from the same shift)

1 - 0.0074 = 0.9926

D.)

Probability that atleast one of the shift will be unrepresented :

(10+6C5) + (8+6C5) + (10+8C5) - (10C5)+(8C5)+(6C5)

[16C5 + 14C5 + 18C5 - 10C5 + 8C5 + 6C5] ÷ 24C5

(4368 + 2002 + 8568 - 252 + 56 + 6) / 42504

= 14748 / 42504

= 0.347

D'Andre earns some money by helping people with their yards. It takes him an average of 2 hours to weed a flowerbed and an average of 1.5 hours to mow and edge a lawn. He can work no more than 6 hours a day. He charges $60 to weed a flowerbed and $75 to mow and edge a lawn. He needs to cover his expenses of $150 to make a profit. Write a system of inequalities that would help determine how many flowerbeds and lawns he could complete on a given day.
______________________________
plz help its due like rn so I'll give brainliest ​

Answers

Answer:

3 flowerbeds and 5 lawns.

Step-by-step explanation:

I promise.

math help pls tsnsnnsnsshs

Answers

Answer:

68°

Step-by-step explanation:

90°(right angle)-22°(angle 5 measurement) = 68°

What are three fractions that are equivalent to 1.

Answers

2/2 , 3/3 , 4/4 ( anything over its self)

What is the area of a rectangle
7 inches long and 3 inches wide?

Answers

Answer:

21

Step-by-step explanation:

you do 7x3

1. Socks are on sale at 10% discount. What is the sale price of a pair of socks originally
marked #125.00?​

Answers

Answer:

10/100 = x/125

1250 = 100x

1250/100 = 100x/100

12.5 = x

125 - 12.5 = 112.5

the sale price is $112.5

Pl help it’s for a grade

Answers

Answer:

c

Step-by-step explanation:

Eight randomly selected customers at a local grocery store spent the following amounts on groceries in a single visit: $216, $184, $35, $92, $142, $175, $9, and $57. Let yi denote the amount spent on groceries by a single customer in a single visit. Find the following (give the answers without commas):

a. ∑y
b. (∑y)^2
c. ∑y^2

Answers

Answer:

a) 910

b) 828100

c) 144320

Step-by-step explanation:

a. ∑y

This is the sum of all values of y. So

[tex]\sum y = 216 + 184 + 35 + 92 + 142 + 175 + 9 + 57 = 910[/tex]

b. (∑y)^2

This is the square of the sum, so the square of 910, that we found in the previous item.

910² = 828100

c. ∑y^2

This is the sum of the squares of each amount spent. So

[tex]\sum y^2 = 216^2 + 184^2 + 35^2 + 92^2 + 142^2 + 175^2 + 9^2 + 57^2 = 144320[/tex]

The cost, in dollars, to produce x vats of ice cream is C ( x ) = 4 x + 4 . When selling them to ice cream shops, the price-demand function, in dollars per vat, is p ( x ) = 88 − 3 x. Find the profit function p(x). How many vats of ice cream need to be sold to maximize the profit? Find the maximum profit. Find the price to charge per vat to maximize profit

Answers

Answer:

92-7x

Step-by-step explanation:

88-3x-4x+4=92-7x

solve

1. 1/3n=4
what is n?

Answers

See the photo attached below

Jefferson’s class was studying sunflowers. They learned that sunflowers are able to make their own food. Which parts of a sunflower collect most of the sunlight needed to make food?

Answers

The leaf is the part of the sunflower that collects the most sunlight needed to make food.

colin did the work to see if 10 is a solution to the equatio

Answers

Um okay good to know

answer asap please!!

Answers

Answer:

61.6 units

Step-by-step explanation:

C (-8,-10)

D (8,10)

E (-8,10)

find the distance between the following points

CD = 25.6

DE = 16

EC = 20

Add them all up

61.6 units

which integer is 3 less than 7

Answers

Answer:

b

Step-by-step explanation:

1. The temperature of a body rises from -6°c to 5°c. By how much degrees does it rises?

Answers

It rises 11 degrees

Step by step explanation

2/4 - 1/4 please hep i know im not that good
for asking this

Answers

Since they have equal bases you can subtract it like a regular number. 2-1 equals 1 so the answer would be 1/4

what is loss and profit

Answers

Loss is when you lose something and profit is when you gain off of it.

Answer:

The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. These records provide information about a company's ability or inability to generate profit by increasing revenue, reducing costs, or both.

Step-by-step explanation:

Calculating Profit and Loss. The actual calculation of profit and loss in a position is quite straightforward. To calculate the P&L of a position, what you need is the position size and the number of pips the price has moved. The actual profit or loss will be equal to the position size multiplied by the pip movement.

Components used in a cellular telephone are manufactured with nominal dimension of .3 mm and lower and upper specification limits of .295 mm and .305 mm respectively. the x bar and R control charts for this process are based on subgroups of size 3 and they exhibit statistical control, with the center line on the x bar chart at .3015 mm and the center line of the R chart at .00154 mm.
a) Estimate the mean and standard deviation of this process.
b) Suppose that parts below the LSL can be reworked, but parts above the USL must be scrapped. Estimate the proportion of scrap and rework produced by this process.
c) Suppose that the mean of this process can be reset by fairly simple adjustments. What value of the process mean would you recommend? Estimate the proportion of scrap and rework produced by the process at this new mean.

Answers

Answer:

Kindly check explanation

Step-by-step explanation:

Xbar = 0.3015 ; Rbar = 0.00154

USL = 0.295 ; LSL = 0.305

For a subgroup size of 3 ; k = 3 ; d2 = 1.693

The mean = xbar = 0.3015 mm

The standard deviation = Rbar / d2 = 0.00154 / 1.693 = 0.0009096

b) Suppose that parts below the LSL can be reworked, but parts above the USL must be scrapped. Estimate the proportion of scrap and rework produced by this process.

P(X < 0.295)

(x - mean) / standard deviation

(0.295 - 0.3015) / 0.0009096 = 0.00003

0.00003 should be reworked.

P(X > 0.305)

1 - P(X < 0.305)

(x - mean) / standard deviation

(0.305 - 0.3015) / 0.0009096 = 3.847

1 - P(Z < 3.847)

1 - 0.99994

= 0.00006

0.00006 should be reworked.

c) Suppose that the mean of this process can be reset by fairly simple adjustments. What value of the process mean would you recommend? Estimate the proportion of scrap and rework produced by the process at this new mean.

Recommended mean = 0.3000 mm

P(X < 0.295)

(x - mean) / standard deviation

(0.295 - 0.3000) / 0.0009096 = 0.00003

0.00003 should be reworked.

P(X > 0.305)

1 - P(X < 0.305)

(x - mean) / standard deviation

(0.305 - 0.3000) / 0.0009096 = 5.497

1 - P(Z < 5.497)

1 - 0.99997

= 0.00003

0.00003 should be reworked.

T varies directly as the square of P and inversely as Z and T=12 when P=3 and Z=6

5. Using k as the constant of variation, which of the following is the equation of variation?
A. T=
\frac{kp {}^{2} }{z}
z
kp
2



B. T=
kpz {}^{2}kpz
2

C. T=
\frac{kz}{p {}^{2} }
p
2

kz


D. T=
\frac{pz {}^{2} }{k}
k
pz
2




6. Which of the following is the value of the variation constant:
A. 6
B. 8
C. 10
D. 12

7. Which of the following is twice the value of T when P=9 and Z=6?
A. 108
B. 216
C. 54
D. 36

Answers

Answer:

A. [tex] T= \frac{KP^2}{Z}[/tex]

D. K = 8

B. 216

Step-by-step explanation:

Q. T varies directly as the square of P and inversely as Z and T=12 when P=3 and Z=6

Solution:

According to the given information:

T varies directly as the square of P.

[tex] T\alpha P^2..... (1)[/tex]

T varies inversely as Z.

[tex] T\alpha \frac{1}{Z} ..... (2)[/tex]

Combining equations (1) & (2)

[tex] T\alpha \frac{P^2}{Z}[/tex]

[tex] T= \frac{KP^2}{Z}[/tex]

(Where K is proportionality constant)

(This is the equation of variation)

Plug T=12, P=3 and Z=6 in the above equation of variation, we find:

[tex] 12= \frac{K(3)^2}{6}[/tex]

[tex] 12= \frac{K\times 9}{6}[/tex]

[tex] K= \frac{12\times 6}{9}[/tex]

[tex] K= \frac{72}{9}[/tex]

[tex] K= 8[/tex]

So, the value of the variation constant = 8

Next, plug P=9, Z=6 and K = 8 in the above equation of variation, we find:

[tex] T= \frac{8(9)^2}{6}[/tex]

[tex] T= \frac{8\times 81}{6}[/tex]

[tex] T= \frac{648}{6}[/tex]

[tex] T= 108[/tex]

[tex] 2T= 2\times 108[/tex]

[tex] 2T= 216[/tex]

So, 216 is twice the value of T.

Evaluate using logarithm table, log (0.65)

Answers

The answer is -0.18708664335

Which statement is true about compound interest?

The interest is figured on the principal only.
The amount in the account grows slower than with simple interest of the same rate.
The interest can be compounded over different time intervals.
The interest in most banks is not calculated using compound interest.

Answers

THE LAST OME IS CORRECT !!!

Compound interest is  the interest calculated using the principal and the interest over a period of time.

The statements that are true about compound interest are:

The interest can be compounded over different time intervals.

The interest in most banks is not calculated using compound interest.

What is compound interest?

It is the interest we earned on the interest.

The formula for the amount earned with compound interest after n years is given as:

A = P [tex](1 + rn)^{nt}[/tex]

P = principal

r = rate

t = time in years

n = number of times compounded in a year.

We have,

The interest is figured on the principal only.

This is not true because we calculate the compound interest on the interest as well.

The amount in the account grows slower than with simple interest of the same rate.

This is not true because we are calculating the interest on the principal and interest together.

The amount with compound interest will be more than the amount with simple interest.

The interest can be compounded over different time intervals.

This is true because we can have different time intervals such as,

monthly compounded, quarterly compounded, bimonthly compounded, and yearly compounded.

The interest in most banks is not calculated using compound interest.

This is true because banks don't calculate using compound interest.

Thus,

The statements that are true about compound interest are:

The interest can be compounded over different time intervals.

The interest in most banks is not calculated using compound interest.

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