Answer:
The sales level in units to achieve the desired profit is 5,200 units.
Explanation:
Fixed cost = $ 3,000
Desired profit = $10,000
Lets the number of units sales is N.
Total variable cost = $2.5*N
Sales revenue = $5*N
Net Profit = Sales revenue – cost of goods sold – operating expenses
$10,000 = ($5*N) – ($2.5*N) - $3,000
($5*N) – ($2.5*N) = $ 10,000 + $ 3,000
$2.5*N = $ 13,000
N = $13,000/$2.5
= 5,200 units
Therefore, The sales level in units to achieve the desired profit is 5,200 units.
Answer:
B. Factoring
Explanation:
Factoring is a financial transaction in which a business sells its accounts receivables to a third party (mostly financing firms) at a discount. Accounts receivable is a record of money customers owe to the company for sales made on credit.
The company sells its future cash-flow owed by it's customers, in return for cash upfront but the cash received is less than the amount it would've received in accounts receivable later because the financing company charges that amount of providing cash (liquidity) to the company.
Factoring is not considered a loan, as the parties neither issue nor acquire debt as part of the transaction.
So the short-term financing option utilized by Tunebeak is Factoring.
Answer: The advantages would be efficiency and accountability; the disadvantages would be resource hoarding and low quality.
Explanation: There will be more trust between workers and indivuals, more accountability as well.
Revenue is the total amount of money on receives; it is used especially for companies. Revenue can come fom all kind of sources such as salaries, wages rent, product sales etc. In this case, the 800$ are Emily's revenue. However, income is the net amount of money that one gets at the end, the net result. Hence, 600$ are Emily's income after applying the tax deductions.
Answer:
1. A compromise should be reached.
In the recession, the other small businesses are suffering including the company in question. If the owner pushes the customers to pay their bills, when the recession ends they may move to other vendors which would have made demanding money from them in the recession a myopic and damaging move.
The business however, also has bills to pay and so needs money to maintain operations as well. A compromise needs to be reached. The owner should contact the other businesses still owing and negotiate with them to pay a certain portion of what they owe with the rest coming later.
This could give the owner enough to keep the business running whilst maintaining the loyalty of his customers.
2. Problems that a business services company could have if customers do not pay include;
- Inability to pay staff.
- Inability to pay utilities like electricity.
- Inability to pay rent and other expenses.
- Increased risk of debt default.
- Growth of company suffers.
