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Lady bird [3.3K]
3 years ago
15

A soft drink company has researched the possibility of marketing a new low-calorie beverage, in a study region. The expected pro

fits depend largely on the sales volume, and there is some uncertainty as to the precision of the sales-forecast figures. The estimated investment is $173,000 while the anticipated profits are $49,500 per year for the next 6 years. If the company's MARR = 15%, what is the minimum volume of sales for the project to breakeven, if there is a profit of $6.70 per unit volume?
a) 7256 units
b) 6824 units
c) 5684 units
d) 5019 units
Business
1 answer:
laiz [17]3 years ago
3 0

Answer:

b) 6824 units

Explanation:

According to the scenario, computation of the given data are as follows:-  

Assume volume of unit = x  

Cash flow = profit × volume per unit

                 = $6.70 × x

                  = $6.70x

= Cash flow × Present value of annuity factor(15%, 6 year) - initial investment

=$6.70x × Present value of annuity factor(15%, 6 year) - $173,000  

=$6.70x × 3.7845 - $173,000

=$25.36x - $173,000

X = $173,000 ÷ 25.36

= 6,821.76 units

The minimum volume of sales for the project to break even is 6,821.76 units

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irakobra [83]

Answer:

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Explanation:

An increase in the real interest rate will result in a decrease for the loanable funds.

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3 years ago
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Kitty [74]

Answer:

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b) -$24 Million

Explanation:

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6 0
3 years ago
You are the head of HR at an organic foods manufacturer. Your goal is to enable HR to transform the functioning of the company t
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Answer:

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Allocating sufficient resources and support for the HRX initiative is a very good step in the right direction as the HR Manger in trying to implement the HRX initiative and also for the long term success of this Initiative as well.

since The main goal of the Head of the Human resources department is to transform the company's production level to a higher level of productivity in a quicker timer frame, dedicating more resources and support to the initiative will help to speed up activities and the company will start producing  at a very fast rate. having to increase salary will not help because the workers can only do what they can do they can't go beyond their limit hence there will be health emergencies.

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5 0
3 years ago
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The career area of chemistry which is involved in the manufacturing of products is: - marketing - R&amp;D - product development
AlekseyPX

Answer:

The correct answer is Chemical production.

Explanation:

The chemical industry deals with the extraction and processing of raw materials, both natural and synthetic, and their transformation into other substances with different characteristics than they originally had, to meet the needs of people, improving their quality of life. Its main objective is to develop a good quality product with the lowest possible cost, and trying to cause the least damage to the environment. The raw materials correspond to various materials extracted from nature in order to manufacture consumer goods. It can be classified according to its origin: animal, vegetable and mineral.

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