Answer:
the sales revenue that Head-First must make to earn operating income of $73,120 is $324,000
Explanation:
Hi, first we need to find the units to reach an operating income = $73,120
Price=72
Var Cost= 72*0.62=44.64
Fixed cost= 50,000
With that in mind, let´s formulate the equation
Where:
X= units to sell
everything should look like this
So, Head First has to sell 4,500 units in order to make that $73,120 operating income mark. Therefore, the sales revenue will be 4,500*$72=$324,000
To check the aswer, please relate to the MS excel spreadsheet attached to this answer.
Best of luck.
The total income of the company will be 114.400$ after a month. Hence, to find the net operating income, we need to subtract from it the various costs. The cost per product is 4.20$. Hence, since we have that 10000+1000 products are sold (+1000 through ads), the total cost of these is 11000*4.20=46.200$. We also have that there is a fixed monthly cost of 10.400$ and a budget for advertisement of 4.400$. Hence, the total cost is 46.200+10400+4400=61000$. Now, we need to subtract this total cost from our income. NOI=114.400-61000=53.400$ where NOI stands for Net operating income.
Answer:
a) 10
Explanation:
Calculation to determine Approximately how many salespeople does Splash World need to service 1000 accounts
First step is to determine the selling time
Using this formula
Selling time=Number of customers *Sales calls per year*Hours per sales call
Let plug in the formula
Selling time=1000 * 5 *2 hours
Selling time= 10,000 hours
Second step is to determine the number of hours they used to sell
Hours to sell= (40 hours per wweek* 50 weeks)*1/2
Hours to sell = 2000 hours per year*1/2
Hours to sell= 1000 hours per year.
Now let determine how many salespeople does Splash World need to service 1000 accounts
Number of salespeople=10,000 hours /1000 hours per year
Number of salespeople=10
Therefore Approximately how many salespeople does Splash World need to service 1000 accounts will be 10 salespeople
<span>Simulation. It is the imitation of the operation of a real-world process or system over time. Simulation testing lays on the intersection of both property-based and example-based testing. It provides strong guarantees about externally-visible, client behavior. This is done in a controlled environment.</span>
