Business Essentials (11th Edition)
11th Edition
ISBN: 9780134149240
Author: EBERT
Publisher: PEARSON
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Question
Chapter 12, Problem 12.7QA
Summary Introduction
To calculate: The break-even units.
Introduction:
Break-even analysis:
A break-even analysis will aid a firm to calculate the sales volume at which the variable and fixed costs needed to develop a product are recovered. It is the point at which a product starts to generate profits.
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Please only answer D-1 and D-2
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs.
Priceper Unit
Variable Costper Unit
Units Soldper Year
Cleaning
$
400
$
220
8,500
Filling
680
660
1,200
Capping
1,550
920
300
Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $540,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income.
A cleaning “unit” is a routine teeth cleaning that takes about 45 minutes. A filling “unit” is the work done to fill one or more cavities in one session. A capping “unit” is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units).
Required:
a. Given this information, how…
Considering what you purchased and how/where you purchased, how the firm could provide even greater value for you? For example, when buying a car, a sales person might ask just the right questions to quickly understand what you are looking for, which makes the buying situation pleasant and easy. Or, if you buy an electric car and the car seller also offers you an easy set up of a home-based charging station, it makes the purchasing decision and actual use of your electric car easier. Also, the possibility to customize the car might create additional value for you.
If the annual cost of goods sold is $12,000,000 and the average inventory is $2,250,000. What is the inventory turn ratio?
Show calculations.
Chapter 12 Solutions
Business Essentials (11th Edition)
Ch. 12 - Prob. 12.1QRCh. 12 - Prob. 12.2QRCh. 12 - Prob. 12.3QRCh. 12 - How is the concept of the value package useful in...Ch. 12 - Prob. 12.5QACh. 12 - Prob. 12.6QACh. 12 - Prob. 12.7QACh. 12 - Prob. 12.8QACh. 12 - Prob. 12.9AECh. 12 - Prob. 12.10AE
Ch. 12 - Prob. 12.11ACh. 12 - Prob. 12.12ACh. 12 - Prob. 12.13ACh. 12 - Prob. 12.14ACh. 12 - Prob. 12.15ACh. 12 - Prob. 12.16TECh. 12 - Prob. 12.17TECh. 12 - Prob. 12.18TECh. 12 - Prob. 12.19TECh. 12 - Prob. 12.20EECh. 12 - Prob. 12.21EECh. 12 - Prob. 12.22EECh. 12 - Prob. 12.23EECh. 12 - Prob. 12.24CCh. 12 - Prob. 12.25CCh. 12 - Prob. 12.26CCh. 12 - Prob. 12.27CCh. 12 - Prob. 12.28CCh. 12 - Prob. 12.29CCh. 12 - Prob. 12.30CCh. 12 - Prob. 12.31CCh. 12 - Prob. 12.32C
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