Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.
Answer:
Investment Decision
Explanation:
The Investment Decision relates to the decision whether or not the company is going to invest in an project which requires the funding and resources of the country. The primary ambition of the company is to increase the profit of the organization which it is considering by establishing chip manufacturing factory. This decision might be affected by the government opposition however the decision is investment oriented decision making.
Answer:
B) Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.
Explanation:
In advertisement, signalling theory uses a biological approach that celebrities, which are seen as successful, wealthy, powerful, etc. transmit a sense of quality to the products that they endorse or recommend.
For example, Mr. T's breakfast cereal was very successful during the 1980s because customers identified Mr. T with being strong, healthy and powerful. Most people are usually followers, not leaders, and we like to follow our famous celebrities.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
It is expected that each pie will sell for $15 and the variable costs per pie will be $9. Total fixed operating costs are expected to be $25,000. Meyerson’s faces a marginal tax rate of 35%, will have interest expense associated with this line of $3,500.
Break-even point (units)= fixed costs/ contribution margin
Break-even point (units)= (25000+3500)/(15-9)= 4750 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= (25000+3500)/[(15-9)/15]
Break-even point (dollars)= $71,250
