Answer:
$66,667
Explanation:
Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000
Percentage of contribution margin = Contribution margin / sales revenue = 180000 / 240000 = 75%
Breakevent point in total sales = Fixed costs / Percentage of contribution margin
= 50000/0.75 = $66,667
Answer:
A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition.
Hope this helps!
Answer:
$5,000= ending inventory
Explanation:
Giving the following information:
Gross margin is normally 40% of sales.
Sales= $25,000
beginning inventory= $2,500
purchases= $17,500
First, we need to determine the cost of goods sold:
COGS= 25,000*0.6= 15,000
Now, using the following formula, we can calculate the ending inventory:
COGS= beginning inventory + cost of goods purchased - ending inventory
15,000= 2,500 + 17,500 - ending inventory
5,000= ending inventory
Answer: predatory pricing
Explanation: In simple words, it refers to a pricing strategy in which the organisation price its goods very low with the objective of capturing the whole market and forcing to leave the other competitors.
In the given case, Lofonitt captured the mp3 market by offering lower price [products leading to failure of their competitors.
Hence we can conclude that they were indulged in predatory pricing.
There are a lot of professions this could pertain to, but one of the most obvious is construction.
