I assumed you typo 821 by $21 per unit, then the answer will be
1- financial disadvantage of accepting the special order is loss of $60,000
2- a minimum selling price for these units should be $14.00
Explanation:
Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))
a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00
The computation of the break-even point (in units) is given below:
Break-eventpoint = Fixed cost / contribution margin.
= Fixed cost / (selling price - variable cost)
= $158,000/ ($20-%10)
= $158,000/ $10
= %15,800 units.
The break-even point (in units) for Shop 48 is 15,800 units. It can be computed by dividing the amount of fixed cost by the amount of per unit contribution margin. And the per unit contribution margin can be computed by deducting the variable cost per unit from the selling price per unit.
The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business.
Learn more about the break-even point at
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Answer:
Sustainable Growth Rate: 2.5%
Explanation:
Sustainable growth rate is calculated by multiplying return on equity with retention ratio.
Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.
Growth rate = Retention ratio * return on equity
Retention ratio = 50%
Return on equity = Net profit available for distribution / Opening equity
Return on Equity = (25,000 * 10%) / 50,000
Return on Equity = 5%
Growth Rate = 5% * 50%
Growth Rate = 2.5%
Answer:
Functional need
Explanation:
Functional need -
It refers to the needs of the human being , which are important for the survival , is referred to as functional need .
These are basic requirements which are important for the day to day activities of the people .
Hence , from the scenario of the question,
Sarah bought a cycle , but as soon as she realized that basket is important for keeping her bag and other item .
Hence, the need of basket is the functional need .
