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GrogVix [38]
3 years ago
7

A retailer spends a $500 per month to keep its online shop active and updated. The store acquires shirts at a cost of $5 per shi

rt. Each shirt sells for a marginal benefit of $10 per shirt.
How many shirts would you have to sell for it’s marginal benefits to be greater than its total costs?
Business
1 answer:
Vesnalui [34]3 years ago
3 0

Answer:

100 shirts

Explanation:

Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.

Break-even point = fixed cost / contribution margin per unit.

For this retailer,

Fixed costs are $500,

The contribution margin per unit = selling price- variable cost

=$10-$5

=$5

Break-even point

= $500/$5

= 100units

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Answer:

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Direct Forces: This determines how low the floor can go for a price competition

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Coors Brewery attempting to sell its beer in Ireland competing against Guiness Beer... Or attempting to sell its beer in Australia competing against Fosters beer is an example of Competitive Forces because by attempting to sell its beer in either of Ireland or Australia to compete with Guiness Beer or Fosters Beer, there will be competition in the Industry, thus, the larger the number of equivalent product and services offered, the lesser the power of a company.

Suppliers and Buyers alike seeks for a company's competition and see if they are able to offer better deals and lower prices.

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3 years ago
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Ne4ueva [31]

Options :

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I’m gonna say this one is true.
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