Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
Answer:
The correct answer is letter "B": an underdeveloped infrastructure.
Explanation:
The worldwide market we live in today has allowed companies to <em>outsource </em>their activities to different countries in an attempt to lower production costs and avoid stiff regulations. However, there are many challenges firms have to deal with while starting businesses in foreign regions.
Depending on the industry of the company, sometimes the firms must invest in countries with underdeveloped infrastructure. It could imply building facilities, bridges, highways or any other infrastructure that will allow the company to conduct its operations normally.
Answer:
economies of scale
Explanation:
When you buy shares you have to pay dealing costs and admin fees, which can eat away at the value of your investment. In an investment company, all the investors pool their money and split the admin costs. You can end up paying much less.
Answer: The best answer is C
Explanation:
C. In towns with healthy central shopping districts, what proportion of the stores in those districts suffer bankruptcy during a typical five-year period?
Supposing that roughly a quarter of stores in a HEALTHY central shopping district is being found out to have suffered bankruptcy during a typical five-year period. This would be an evidence to say that losing a quarter of the stores to bankruptcy is NOT a sign that a shopping district is "unhealthy". In that regards, the records from the other towns would simply show that, DESPITE having a SaveAll, the shopping districts maintained healthy bankruptcy rates.
So, the fact that a quarter of stores in Morganville's central shopping district will likely experience bankruptcy is no cause for alarm. This is what we would expect in ANY healthy central shopping district. Therefore, based on the evidence, there is no reason to expect that opening a Save All will negatively affect the health of the central shopping district.
