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2 years ago

When a company sells multiple products, an increase in total sales always results in an increase in total profits.

1 answer:

5 0

Hindsight is a wonderful thing in any business, or in life in general. We could make the best business decisions and maximise earnings if we had access to a crystal ball that could tell us exactly how many people would buy our goods.

<h3>What Is Cost-Volume-Profit (CVP) Analysis?</h3>

An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.

Companies can utilise CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

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It is possible to use a decision making process for any decision.

loris [4]

I think so, but there may be some exceptions--if any.

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3 years ago

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Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly i

Rudik [331]

Answer:

$245,000.00

Explanation:

The amount of sales revenue to be made to achieve target profit is computed as follows:

Sales revenue to achieve target income

= Total fixed cost for the period + target profit/ contribution margin

Contribution margin = (Sales - variable cost) / sales × 100

The figure has been given as 40% in the question

Sales revenue to achieve target profit = (83,000 + 15,000)/0.4

$245,000.00

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?

Sales revenue to achieve target profit = $245,000.00

8 0

3 years ago

Assume that the interest rate on borrowings in south korea is 1 percent, but the interest rate on deposits in british banks is 7

Vikentia [17]

The trader involved is in carry trade.

Further Explanation:

Carry Trade: It is defined as a strategy that is used in trading which involves borrowing money at a lower rate of interest and investing in an asset that gives a higher rate of return. It involves borrowing money in a currency that is having a low rate of interest and convert the borrowed sum of money into other currency. The amount is then placed in a deposit in the currency that offers a high-interest rate. It invests in the assets like bonds, stocks, real estate, or commodities that are designated in the other currency.

The two risks that are involved in carry trade are the risk of decline in the price of the assets in which investment is made and exchange risk. This is common in the Foreign exchange market.

Therefore, the trader is involved in carry trade.

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Answer details:

Grade: High School

Subject: Economics

Chapter: Types of trade

Keywords: the interest rate, South Korea, 1 percent, deposits in British banks, 7 percent, a trader, 1 million South Korean won, British pounds, deposits in a British bank, carry trade, trade involved in, FX market.

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3 years ago

Net loss can be thought of as a __________ to the Capital account. Debit Credit

xz_007 [3.2K]

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a Credit to the Capital account.

6 0

2 years ago

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the uretha

denis-greek [22]

Answer and Explanation:

The preparation of schedule showing physical units of production is prepared below:-

Rosenthal Company

Physical units of production

For the year June 2020

Units to be accounted for:

Work in process, June 1: -

Started into production 22,660 units

Total units 22,660

Units to be accounted for:

Transferred out 20,600 (22,600 - 2,060)

Work in process, June 30 2,060 units

Total units 22,660 units

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3 years ago