Answer:
Number of units that must be sold to earn the target profit is 3000 units.
The contribution margin ratio is 0.70
Explanation:
We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired
The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.
Contribution margin per unit = 250 - 75 = $175
Number of units required to earn target profit = (325000 + 200000) / 175
Number of units required to earn target profit = 3000 units
The contribution margin ratio is = 175 / 250 = 0.7 or 70%
Dollar Sales required to earn target profit = $4,812,500
Answer:
False
Explanation:
SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats is a FALSE statement. SWOT analysis means
Strength
Weakness
Opportunities
Threat
Strength and weaknesses are the internal factors not external ones, strength and weakness comes from inside of the organisation. Any organisation capability to serve the customers well, having red hot selling products, creative employees can be its strength. If these elements are not performing well, they can become the weakness as well, therefore, SW is related with the internal environment of the organisation.
In the same way, opportunities and threats are posed by the outside environment, they are not internal elements and factors. Political, social, technological and legal environment can create both treat as well new and exciting opportunities for the organization.
Answer:
C. Land
Explanation:
Input is any commodity used in the manufacturing of other products. Factors of production are the inputs or resources used in the production of other goods and services. They include land, capital, labor, and entrepreneurship.
From the list provided, the only the factor of production is land. In economics, land refers to the fertile fields used in agricultural production. It also refers to space where commercial buildings, factories, and businesses are set up. Land also includes natural occurring resources and minerals such as oil, natural gas, and precious stones.
