The correct answer is " new firms will enter the market"
Answer:
Annual financial disadvantage = $ (669,600)
Explanation:
Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.
The relevant costs of this decision to disconnected includes the following:
- The variable cost of making the product = $19 per unit
- Sales revenue at a price of $25
- Savings in avoidable fixed costs (102,000-72,000) = 30,000
Annual financial advantage
$
Lost contribution $(25-19)× 4,300 units = (85,800)
Saving in fixed cost = <u> 30,000</u>
M<em>onthly net loss </em><em><u> 55,800</u></em>
Annual financial disadvantage
Monthly net loss × 12 months
= (55,800) × 12
= $ (669,600)
One of the most common mistakes new business owners make is C. setting unrealistic goals
As a new business owner, you have to determine your goal for your business which is achievable.
It can be deduced that the number of blankets that must be sold in order for the company to achieve the target profit is 40000.
<h3>How to calculate the target profit</h3>
From the information, Blissful Blankets' target profit is $520,000 and each blanket has a contribution margin of $21. Fixed costs are $320,000.
Therefore, the number of blankets that must be sold to achieve the target profit will be:
= (520000+320000)/21
= 40000
Learn more about profit on:
brainly.com/question/1078746
20,950 minus 18750 is 2200 so im guessing the markup is $2200
