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jekas [21]
2 years ago
15

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

Business
1 answer:
nevsk [136]2 years ago
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.

Learn more about Cost-Volume-Profit refer:

brainly.com/question/26711135

#SPJ4

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Puff Co. acquired 40% of Straw, Inc.'s voting common stock on January 2, Year 1, for $400,000. The carrying amount of Straw's ne
Sonbull [250]

Answer:

Investment revenue = $52,000

Explanation:

Since Puff uses the equity method, the original journal entry to record the purchase of 40% of the shares should have been:

Dr Investment in Straw 400,000

   Cr Cash 400,000

After one year, Straw earned $150,000 in net income, but it also had equipment with a fair market value higher than carrying value also depreciable by $100,000. So the net income must be adjusted = $150,000 - ($100,000 x 20%) = $130,000. The journal entry to record the adjusted income should be   ($130,000 x 40%):

Dr Investment in Straw 52,000

   Cr Investment revenue 52,000

8 0
3 years ago
A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as indicated below. Calc
maksim [4K]

Answer:

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

Explanation:

Giving the following information:

Project X t Cash Flows

0 -44,000

1 10,000

2 10,000

3 15,000

4 18,000

5 15,000

<u>The payback period is the time required to cover for the initial investment. We need to discount each cash flow using the following formula:</u>

PV= Cf/(1+i)^n

Year 1= 10,000/1.09= 9,174.31 - 44,000= -34,825.69

Year 2= 10,000/1.09^2= 8,416.80 - 34,825.69= -26,408.89

Year 3= 15,000/1.09^3= 11,582.75 - 26,408.89= 14,826.14

Year 4= 18,000/1.09^4= 12,751.65 - 14,826.14= - 2,074.49

Year 5= 15,000/1.09^5= 9,748.97 - 2,074.49= 7,674.48

<u>To be more accurate:</u>

(2,074.49/7,674.48)*365= 99

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

8 0
3 years ago
The class trip is going to cost each of the fifty
Alex

Answer:

$6,825.00

Explanation:

50x$130=$6,500.00

$6,500 × 5% = $325.00

$325.+$6,500=6,825.00

8 0
2 years ago
GUYS PLEASE HELP ME WITH FINANCIAL PLAN FOR COMPANY OF CONFECTIONERY PRODUCTS BASED ON COFFEE!!!!! 1)Set the price of product an
OLEGan [10]

You are planning a coffee company, This would depend on an amount of customers, location of the company, and how you are going to distribute the product. It will also depend on the source of your products, and the economic and political standpoint of each individual country

1) The buying price should encompass many "thoughts":

  1. It must be small enough to give you a profit
  • The price of the product must not meet or exceed your selling price, for to continue to do business with them, you must be able to earn a profit.
  1. It must be large enough so that both the buyer and seller is happy
  • To keep both the buyer and seller happy, the buyer must be able to give a reasonable price that would ensure a continuation of the product, which means buying in a price that would allow the seller to pay for employees, cover businesses expenditures, etc.

This may place the price in a higher amount, so you must ensure that your product is high-quality to offset the price. For in the balance of price vs customer, the higher the price, the less customers (unless you are a monopoly (which you are not), or you have loyalty.)

2) To calculate the possible earnings, you must subtract the costs from the total revenue you have gotten (to find the profit).

The costs can include: shipment, supplies, electricity, upkeep of store(s), taxes (property, business, etc), royalty to coffee-company, ad-costs (if you decide to run them), etc.

For example, let us say that:

Total cost for:

  1. Shipment: $300 per shipment (10 shipments = 10 x 300 = $3000)
  2. Royalty: $1000
  3. Tax: $300
  4. Payment to sources: $0.10 a lb.
  5. Cost for 500 lbs. of coffee

500 x 0.10 = 50

3000 + 1000 + 300 + 50 = $4,350

This means that total cost for shipment of resources needed is $4,350.

Now, let us calculate the cost of the business itself:

For example:

Total cost for:

Building maintenance: $5,000

Pay for employees as a whole for 30 days: $6,000

Electricity, Gas, and other power source: $2,000

Total cost: 5000 + 6000 + 2000 = $13,000

Total cost for extra workers (repairs): $3,000

Tax as a whole: $16,000

16000 + 3000 = 19,000

This means that total cost is:

$13,000 + $19,000 + 4,350= $36350

---------------------------------------------------------------------------------------------------------

So we must calculate the amount needed to break even and make a profit.

Let us say that you want to make a $10000 profit.

Add $36350 with $10000, which equals $46,350

=>

After a month, you find that approximately 50,000 customers show up (returns are counted too) in total to your stores because they find that your products are good

Divide $46,350 with 50,000

46,350/50,000 = ~0.93

However, 93¢ is a weird number to sell coffee, and so we will round up to $1.00

This means that you sell each cup of coffee at $1.00

--------------------------------------------------------------------------------------------------------

3) The cost of production is <em>$36,350</em>, with the total revenue being a projected amount of <em>$46,350 - $50,000</em>

Subtract the range with the production

$46,350 - $36,350 = 10,000

$50,000 - $36,350 = 13650

The total profit is projected to be from $10,000 - 13,650

--------------------------------------------------------------------------------------------------------

=> Remember revenue & profit is usually poured back into the company, and so the amount is subject to change in a year to year process. Also, the percentage of loyalty & new customers may change as well. Political events around the world may affect sales. Overseas openings of shops may also have an effect on the company.

-------------------------------------------------------------------------------------------------------

~<em>Rise Above the Ordinary</em>

4 0
3 years ago
In 2008, Zimbabwe ran out of locally produced Coca Cola and local Coke bottlers were not able to import the concentrated syrup n
almond37 [142]

Answer:

4) Hyperinflation

Explanation:

Hyperinflation is when the prices of goods and services rise more than 50 percent a month. At that rate, a loaf of bread could cost one amount in the morning and a higher one in the afternoon. The severity of cost increases distinguishes it from the other types of inflation.

3 0
2 years ago
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