You are looking for ways to save money when it comes to feeding your family. What is the most helpful way to cut back on food ex
1 answer:
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Answer:
The company will need to sale 3,883 units to maintain its current operating income of 400,000
Explanation:
We will calculate the point at which the company mantains his current income in units at the new scenario:
<u>Where:</u>
625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.
Current income: contribution x units sold - fixed cost
(590-190) x 4,000 - 1,200,000 = 400,000
(1,200,000 + 89,000 + 400,000) / 435 = 3,882.75862 = 3,883 units
The company will need to sale 3,883 units to maintain its current operating income of 400,000
Answer:
The owner will maximize value if it waits 29th years Assuming 5% continuos inflation
Explanation:
the price formula for the future years is:
while it is adjusted for inflation at:
so the complete formula for value is:
Now, we can derivate and obtain the roots
Getting at a root exist at the 29th year.
The owner will maximize value if it waits 29th years Assuming 5% continuos inflation
