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marusya05 [52]
1 year ago
12

Continuing the analysis of Ginnie's Gym Refreshment Bar:

Business
1 answer:
IrinaVladis [17]1 year ago
7 0

The bundle prices for Hydration Power Drink and Satisfying Smoothie are given below.

<h3>What is Contribution Margin?</h3>

The contribution margin (CM), also known as the dollar contribution per unit, is the difference between the selling price and the variable cost per unit.

Because 100% is the best contribution margin, the closer the contribution margin is to 100%, the better. The greater the figure, the better a company's ability to meet its overhead expenditures with cash on hand.

The contribution margin =

Unit Margin (Profit) = Unit Revenue - Unit Variable Cost (Marginal Cost)

<h3>What is the bundle prices and Net Profit?</h3>

For Hydration Power Drink:

High 7 -1 = 6

Low: 6 - 1 = 5

Total = 11

For Satisfying Smoothie:

High: 10 -4 = 6

Low: 5-4 = 1

Total  = 7

High Bundle Price for both products:
6 + 6 = 12

Low Bundle price for both products:
5 + 1 = 6

From the above information, it is clear that the Bundle Price that will maximize profit is the High Bundle Price.

The product that will yield the most profit is: The Hydration Power Drink.

Learn more about bundle price:
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Projects A and B are mutually exclusive and have an initial cost of $82,000 each. Project A provides cash inflows of $34,000 a y
MrRissso [65]

Answer:

If discount rate is 11.7% Project B should be accepted.

If discount rate is 13.5% both projects should be rejected

Explanation:

If the Net present value of Project A is higher than that of project B, we will accept project A and vice versa.

<u>Under 11.7% Discount Rate</u>

Net Present Value-Project A = -82000 + 34000 / 1.117  +  34000 / 1.117²  +   34000 / 1.117³  = $85.099

Net Present Value-Project B = -82000 + 115000 / 1.117³ = $516.029

Project B should be accepted as it has a higher NPV.

<u />

<u>Under 13.5% Discount Rate</u>

Net present Value-Project A = -82000 + 34000 / 1.135 + 34000 / 1.135² + 34000 / 1.135³   = - $2397.49

Net Present Value-Project B = -82000 + 115000 / 1.135³  = - $3347.91

Both projects should be rejected as both have negative NPVs

7 0
3 years ago
Which of the following BEST represents a mission​ statement? A. Our goal is to honor and empower wounded warriors. B. We strive
BabaBlast [244]

Answer:

B. We strive to be the worldwide leader in sharing delicious tastes and creating joyful memories

Explanation:

There are two concepts i.e mission and vision. The mission statement is the statement in which it talks about the company goals and objective that represent the present condition of which market should be targeted, its geographical location, etc

While on the other hand the vision statement refers to position of the company in the future. It is always for the long term as it is always thinking for the future where the company what to be.

Based on the above explanation, the option B is correct as it depicts the mission statement.

4 0
3 years ago
For most companies, the web ______ the threat that new competitors will enter the market by ______ traditional barriers to entry
Andrei [34K]

Answer: b. Increases, decreasing

Explanation: For most companies, the web increases the threat that new competitors will enter the market by decreasing traditional barriers to entry. Traditional barriers to entry include

a. Economies of scale

b. Product differentiation

c. Capital requirements

d. Switching costs

e. Access to distribution channels

f. Cost disadvantages

g. Government policy

thus, by reducing some of these barriers to entry the Web increases the threat of new competition.

7 0
3 years ago
How many credits toward a college degree can a student get through the AICE program? 5 10 30 50
Rus_ich [418]
"30" is the answer you're looking for.
8 0
3 years ago
All sales are made on account. Collections from customers are normally 70 percent in the month of​ sale, 20 percent in the month
Taya2010 [7]

Answer:

The expected ending balance on November 30 will be $134,500

Explanation:

Sales Collected (165,000*70%)                  $115,500

Expenses paid                                            ($36,000)

Cash Opening                                               $55,000

Cash ending Nov 30                                    $134,500

5 0
2 years ago
Read 2 more answers
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