1)The cm ratio<span> is the difference between a company's sales and variable expenses (expenses proportional to units produced), expressed as a <span>percentage. Hence, we have that the costs of the product per unit are 70%= 100%-30% of the unit income, thus they are 40*70%=28$. Thus, the variable expenses per unit are 28$.
2) In order to break even, they have to make profit of 180000$ from sales. Each unit gives a profit of 12$=40$-28$ (unit profit). Hence, in order to make a profit of 180000$, the have to sell 180000/12=15000 units. Those units will bring in sales of 40*15000=600000$. We also have that if the company wants to make a net profit of 60000$, the profit from the unit sales needs to be 240000$ in total. Hence, they will need 240000/12=20000 units and the sales will be 40*20000=800000$ at that point.
3) Let us calculate the new cost. It is obviously 28-4=24$. The new profit margin per unit is 40-24=16$. Hence, to break even this time they will need only 180000/16=11250 units. They will be sold for 40*11250=450000$ in total. To make that additional profit of 60000$, they will need to sell 60000/16 more units, hence 3750 more units. This means that they need to do an additional 150000 dollars in sales. With the new variable cost, to achieve profit of 60000 they need to sell 11250+3750=15000 units and they will cost 600000$
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Answer:
$33.02
Explanation:
EPS (Earnings Per Share) would be simply,
Total Earnings divided by the number of shares outstanding
First, we need to find our total earnings. We will get this by summing up Sales and Net Income from selling shares. Then we will minus the expenses.
So,
Sales = 17.55 mill
Net Income from Shares = 5 mill shares AT $32.55 each = 5 mill * 32.55 = $162,750,000
Expenses = 15.20 mill
Thus,
Total Earnings = 17,550,000 + 162,750,000 - 15,200,000 = 165,100,000
Total Shares = 5 million
So, EPS would be:
EPS = 165,100,000/5,000,000 = <u>$33.02</u>
Answer:
elastic, because many other firms produce the same standardized product
Explanation:
A good has perfect price elasticity when a change in price leads to an infinite change of quantity demanded.
A perfect competition is when there are many buyers of homogenous goods and services. The sellers are price takers; prices are set by the market force.
A perfect competition has perfect price elasticity because goods sold are standardised and identical with other goods in the market. If the seller increases its price, it's demand would fall to zero as consumers would shift demand to other subsituite goods.
I hope my answer helps you.
The best choice is C, 0.50% to 1.25%, because they are only allowed to do roughly about 1% on mutual funds by state requirements and laws in the United States and other major economic groups. This interval is best because A is insanely low on mutual funds and would make the nation impossible to sustain itself, B is a bit too low, and D is absurdly high because 2.50% is a violation. Found this helpful? Give it a Brainiest Award.
