Agree, since two minds work better than one.
Answer:
Number of units that must be sold to earn the target profit is 3000 units.
The contribution margin ratio is 0.70
Explanation:
We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired
The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.
Contribution margin per unit = 250 - 75 = $175
Number of units required to earn target profit = (325000 + 200000) / 175
Number of units required to earn target profit = 3000 units
The contribution margin ratio is = 175 / 250 = 0.7 or 70%
Dollar Sales required to earn target profit = $4,812,500
<span>Foreign companies and investors benefit the most from a falling dollar. When the amount that a dollar can buy depreciates, it becomes more expensive, relatively, to purchase foreign goods. In addition and because of this depreciation, it also becomes relatively less expensive for foreign investors to purchase domestic goods, which means that foreign companies can buy more from US-based businesses.</span>
Answer: Option C
Explanation: Planning in management refers to the process in which the managers focuses on determining the goals of the company and ascertaining the need of resources needed to achieve those goals. It is the first step in the management process.
It is focused on allocating the resources to different departments and sections as per the needs, so that the objectives of the organisation could be achieved.
Thus, from the above we can conclude that the correct option is C.
Answer: B. Operating income will increase by $ 45,000
Explanation:
Total fixed cost = $833,000
Sale price per unit = 60
Variable cost per unit = 30
Advertising = $30,000
Increase in sales volume = 2500
The contribution margin is the difference between the sales price per unit and the variable cost per unit.
= 60 - 30
= 30
Therefore, Hence the increase in the contribution margin will be:
= ($30 × 2500)=$75000
We then subtract the additional cost of $30,000 from $75,000. This will be:
= $75,000 - $30,000
= $45,000
Therefore, operating income will increase by $45,000
