Let the additional number of units, babymart need to sell be x, then
Revenue = $315(400 + x)
New fixed cost = $50,000 - $5,000 = $45,000
Thus, Total cost = $115(400 + x) + $45,000
Net income = Revenue - Total cost = 315(400 + x) - 115(400 + x) - 45,000 = 40,000
⇒ 200(400 + x) = 40,000 + 45,000
⇒ 80,000 + 200x = 85,000
⇒ 200x = 85,000 - 80,000 = 5,000
⇒ x = 5,000 / 200 = 25
Therefore, the additional number of units babymart needs to sell to maintain the same level of income is 25 units.
Answer:
$10,000
Explanation:
EBIT is earnings before interest and tax
EBIT = Revenue - cost of goods sold - other expenses - depreciation
$94,000 - $51,000 - $21,000 - $12,000 = $10,000
A) Accepted everywhere
Explanation
A is the correct answer because paper money and change being accepted everywhere makes it a lot easier to use than other forms of payment which may not be accepted.
B cannot be the answer because a paper trail not being automatically created is not a good thing. If someone wished to track their purchases, it would be much harder to do so.
C cannot be the answer because it is very inconvenient to use physical money for large purchases because it often requires some sort of container for transportation and can be easily stolen or taken if the amount of money is revealed.
D cannot be the answer because an item being easy to lose cannot be a good thing unless one wishes to lose that item. Typically, one does not wish to lose money, so this answer would not work.
A depository institution is a financial institution in the United States.
