Answer: Sales price per unit less total variable cost per unit.
Explanation:
Cost-volume-profit analysis works by dividing the expenses faced by a business in the production and/ or selling of goods into fixed and variable costs.
To calculate the contribution margin in such a scenario, the Total variable cost incurred per unit is deducted from the sales price per unit. From this figure, the fixed cost can then be subtracted to find the operating income per unit.
If one wants to find the breakeven volume, you can divide the Fixed assets by the Contribution margin.
Answer:
$128,477
Explanation:
Given that
Payment to finance for purchasing the machine = $30,500
Rate of interest = 6%
Future value of one for five periods at 6% is 1.33823
The future value of an ordinary annuity for five periods at 6% is 5.63709.
The present value of an ordinary annuity for five periods at 6% is 4.21236.
So by considering the above information, the cost of the machine is
= Payment to finance for purchasing the machine × present value of an ordinary annuity for five periods at 6%
= $30,500 × 4.21236
= $128,477
Answer:
Differentiation strategy, is the right answer.
Explanation:
In Bussiness studies, a differentiation strategy is a method of developing the business by providing the customers with something different or unique from the items offered by their competitors in the marketplace. The increase in the competitive advantage is the main objective behind implementing a differentiation strategy. By analyzing its strengths, weaknesses, the needs of customers and the prices they can provide, a business can accomplish this.
