Answer:
B. increase the supply of its doll now before the other doll hits the market
Explanation:
Funsters Inc. should increase supply of it´s popular doll now before the doll of Toysorama company hit the market at low price. This will give first mover advantage to Funsters Inc., Which will help the company to grab market share and gain revenue from the market before other company launches its doll. Competition in the market can be handled by taking first step.
Explanation:
People who start new businesses or bring new products to market are called an entrepreneur.
The break even point would be 1850000, and as Mercantile made 2000000, the margin of safety would be 150000.
Answer: Be undertaken because the rate of return is 5 percent greater than the interest rate
Explanation:
Given the following ;
Revenue increase = $10,000
Cost of machine = $8,000
Calculating the Rate of Return on the investment ;
FV = PV × (1 + r)^n
FV = Revenue increase = $10,000
PV = Cost of machine = $8000
n = period = 1 year
r = rate of return
$10000 = $8000 × (1 + r) ^1
1 + r = $10,000 ÷ $8,000
1 + r = 1.25
r = 1.25 - 1
r = 0.25 = 25 %
Interest rate = 20%
Rate of Return on investment = 25%
Rate of Return is 5% greater than interest rate