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Rudik [331]
3 years ago
14

Determine the market potential for a backpack that has 200,000 prospective buyers who purchase an average of 2 backpack per year

at an average price $50 per backpack. How many units must a company sell if it desires a 10% share of this market? Supplier of backpack leases the factory for $400,000 per year and has a variable cost of $ 30 per unit. What % of the market supplier should capture to break even?
Business
1 answer:
LekaFEV [45]3 years ago
8 0

Answer:

i.The total number of a company sell if it desires a 10% share of this market? is 40,000 units

ii. The % of the market supplies that should capture to break even is 5%

Explanation:

To calculate break even point in unit, use the formula;

Fixed Cost / Contribution Margin.

In this question, Fixed cost is the factory lease cost of one year for $400,000

Contribution margin is the difference betwen Selling Price and Variable Cost.

This will be $50-$30=$20

Therefore, Break even point in unit = $400,000 divided by $20

this will give 20,000 units.

20,000 units is 5% of the market size of (200,000X2) 400,000 units.

I.e. (20,000/400,000)X100=5%

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3 years ago
A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as:
kobusy [5.1K]

Answer:

Double taxation.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

There are three (3) types of taxation used by the government, these are;

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3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

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In this scenario, a corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as double taxation.

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