Answer:
b. it expects that this will increase sales and profits
Explanation:
Answer:
Explanation:
Monthly interest = 6 / 12 = .005
principal amount a₀ = 30000
an denote the amount owed at the end of the month
amount owed at the end of one month
a₁= 1.005 x a₀ - 600
amount owed at the end of 2 nd month
a₂= 1.005 x a₁ - 600
amount owed at the end of nth month
an = 1.005x an-1 - 600 for n ≥ 1
This is an opinion question. There's no one right answer.
The following formula is used to calculate break even point:
Break even point = Fixed cost/(Price per unit - Variable cost per unit)
Substituting for the values given;
Break even point = 6,000/(16-12) = 1,500 units
