Answer:
The answer is option B) without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.
Explanation:
The financial plan of an organization also known as financials is a record used to determine how a business will afford to achieve its strategic goals and objectives.
The Financial Plan collates each of the activities, resources, equipment and materials that are needed to achieve these objectives and specify time frames involved.
A financial plan contains a sales forecast, expense budget, cash flow statement, income projections, asset and liabilities, depreciation table, break even analysis and pre-operating costs. It shows whether the firm is making profit or running at a loss.
It is usually prepared in a spreadsheet.
This plan is what the bank and investors will need to evaluate your business.
Without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.
Answer:
The correct answer is letter "D": Straight-line depreciation is higher than double-declining-balance depreciation in the later years.
Explanation:
With the straight-line approach, depreciation is distributed equally during the life cycle of an asset. While using the double-declining-balance approach, a higher amount of depreciation is allocated during the first years while the asset is highly used and the depreciation reduces as long as the life of the asset ends.
Thus, <em>given a certain asset, the depreciation with the double-declining-balance will be minimum at a later age but evenly distributed using the straight-line method. Then, the amount of depreciation with the straight-line method is likely to be higher.</em>
Answer:
I am not sure what this means
Answer:
Instructions are below.
Explanation:
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 162,000 / (90 - 36)
Break-even point in units= 3,000
<u>The break-even point in units is the number of units required to cover for the fixed costs.</u> At this point, the net income is zero. When cost increase, there are necessary more units to break even.
Fixed cost increase= break-even point in units increases
Unitary variable cost increase= contribution margin decreases. Break-even point in units increases
Selling price increase= break-even point in units decreases.