1)The cm ratio<span> is the difference between a company's sales and variable expenses (expenses proportional to units produced), expressed as a <span>percentage. Hence, we have that the costs of the product per unit are 70%= 100%-30% of the unit income, thus they are 40*70%=28$. Thus, the variable expenses per unit are 28$.
2) In order to break even, they have to make profit of 180000$ from sales. Each unit gives a profit of 12$=40$-28$ (unit profit). Hence, in order to make a profit of 180000$, the have to sell 180000/12=15000 units. Those units will bring in sales of 40*15000=600000$. We also have that if the company wants to make a net profit of 60000$, the profit from the unit sales needs to be 240000$ in total. Hence, they will need 240000/12=20000 units and the sales will be 40*20000=800000$ at that point.
3) Let us calculate the new cost. It is obviously 28-4=24$. The new profit margin per unit is 40-24=16$. Hence, to break even this time they will need only 180000/16=11250 units. They will be sold for 40*11250=450000$ in total. To make that additional profit of 60000$, they will need to sell 60000/16 more units, hence 3750 more units. This means that they need to do an additional 150000 dollars in sales. With the new variable cost, to achieve profit of 60000 they need to sell 11250+3750=15000 units and they will cost 600000$
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Savings usually have positive impacts on economic growth of a nation. Firstly, increase in the amount of money saved increase the amount of money that are available in the banks which can be used for investment purposes that will benefit the economy. Secondly, high saving rate in an economy increases the ability of that economy to recover from inflation and recession. Personally and nationally, saving helps to cope better with economic and financial down turns.
Promotional mix is is the message conveyance that a business owner uses to sell his or her product .
<h3>What is promotional mix?</h3>
A promotional mix involves using marketing methods such as advertising, sales, public to achieve marketing goal.
The promotional mix is important to increase sales and to get larger marketing mix.
Learn more about promotional mix at;
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Answer: Managed Float
Explanation:
Also called "Dirty Float", the Managed float is an exchange rate system that allows for the currency of a country to be set by the forces of demand and supply in the market.
However, unlike in a clean float, the Central bank will occasionally intervene in the market to influence the how fast the currency is changing value or to control the direction it is going.
This is usually done to protect the domestic economy from sudden shocks in the global economy.
Answer:
demand will be low
Explanation:
According to my research on different pricing strategies, I can say that based on the information provided within the question demand will be low. Since they will be charging high amounts the demand will be lower because only a select few amount of people will be able to afford it. Usually their consumer base will be made up of enthusiasts and loyal customers that have supported the brand for years and have a good economic standing. Demand will slowly rise as competition sets in and prices decrease.
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