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malfutka [58]
3 years ago
12

Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her busine

ss and get it off the ground. Susan experienced?
Business
1 answer:
rosijanka [135]3 years ago
4 0

Answer: Undercapitalization

Explanation:

Susan's cake decoration business suffered from Undercapitalization.

Undercapitalization occurs when a business is not properly funded to maintain it's running. Undercapitalization is mainly common in small scale businesses with little start up capital.

Undercapitalization can cause inability to pay for: workers wages, rent, transportation of business supplies.

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Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even at this level of sales. Fixed expen
Doss [256]

The company's variable expenses per unit is 1.25

<h3>What is breakeven?</h3>

Breakeven is a point at which neither profit nor loss is made. It is used to determine the number of units or dollars of revenue needed to cover total costs.

Number of units to sell = 100,000

Price per unit = 2

Fixed expense = 75000

At break even point :

Revenue = total expenses

Total expenses

= fixed cost + variable cost

Let variable cost = x

Revenue

= units to sell * price per unit

Revenue

= 100,000 * 2

= 200,000

Hence,

Fixed cost + variable cost = Revenue

75000 + x = 200,000

x = 200, 000 - 75000

x = 125,000

Variable cost = 125,000

The variable expense per unit is thus :

Variable expense / number of units

= 125,000 / 100,000

= 1.25 per unit

Hence, the company's variable expenses per unit is 1.25

Learn more about break even here: brainly.com/question/9212451

7 0
2 years ago
The owner of Crackers, Inc., produces two kinds of crackers: Deluxe (D) and Classic (C). She has a limited amount of the three i
yulyashka [42]
It’s A because if u multiple the ounces and add them together the make less then 4,800
4 0
4 years ago
Economic exposure, a category of foreign exchange risk, is distinct from transaction exposure, which is concerned with the effec
zhannawk [14.2K]

Answer; this is true

Because, Foreign exchange risk is divided into three main groups: transaction exposure, translation exposure, and economic exposure. Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs. This is distinct from transaction exposure, which is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months

8 0
3 years ago
The Graber Corporation’s common stock has a beta of 1.8. If the risk-free rate is 5.8 percent and the expected return on the mar
Murljashka [212]

Answer:

16.96%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5.8% + 1.8 × (12% - 5.8%)

= 5.8% + 1.8 × 6.2%

= 5.8% + 11.16%

= 16.96%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

3 0
3 years ago
Which of the following best describes the difference between a convertible bond and a warrant? Convertible bonds give the invest
levacccp [35]

Answer: Statement A

Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.

.

Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

.

Thus, from the above explanation we can conclude that statement A is correct.

4 0
3 years ago
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