Fill This Form To Receive Instant Help
Homework answers / question archive / Pepperdine University FINC 655 Chapter 5 Multiple Choice Solutions 1)Which of the following will increase the break-even quantity? A decrease in overall fixed costs [Breakeven is calculated as Q=F/(P-MC), Therefore a decrease in overall fixed costs would decrease the numerator and hence the Breakeven Quantity] A decrease in the marginal costs [Breakeven is calculated as Q = F/(P-MC)
which these two costs are the same. Therefore, setting these equations equal to each other gives us 500+50(Q) = 250
+100(Q), which allows us to solve for Q = 5]
$250,000 updates), the Price is given as $100 and the Marginal cost is the $80 cost per additional board. Putting these in the formula, we see that 350,000/(100-80) = 17,500]
Already member? Sign In