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Y_Kistochka [10]
3 years ago
7

As old central business districts and industrial zones in more developed countries lost businesses and employment in the mid- to

late twentieth century, suburban development expanded. Which types of cities resulted from rapid suburban growth and the expansion of retail areas, office developments, business centers, and corporate headquarters to provide jobs and services in suburban areas?
Business
1 answer:
dedylja [7]3 years ago
3 0

Answer:

ex-urbs resulted from suburbanization (or counterurbanization, the first term sounds better to me)

Explanation:

In the past, city planners thought about large cities as concentric rings or sectoral divisions, but the rapid growth of suburbs have challenged those concepts. As more people moved into suburbs, not only rich people, but middle class also, the suburbs gained importance. Currently in the US, more people live in the suburbs than in cities or rural areas.

This process led to the formation of small satellite suburbs that were large enough to be considered small towns, and they multiplied. Each small satellite suburb (or ex-urb) keeps growing and have the advantage of lower housing costs, and the time it takes to go the large cities is not that long anymore. I currently live on a "small town" where many people go to work in the morning and return in the afternoon. But you also notice how more and more offices are opened here, not a lot of factories though.

In my personal experience, new businesses started to form around the train and bus station, and now it is full of small bank offices, restaurants, stores and a couple of supermarkets. People who lived there moved a little farther away and it is like a small downtown area.

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Assume that sales are predicted to be $4,000, the expected contribution margin is $1,720, and a net loss of $280 is anticipated.
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Answer:

e)  $4,651

Explanation:

The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.

It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.

Working it out

Break-point in sales = Total General fixed cost/ Contribution margin ratio

Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.

CMR = contribution/sales

Fixed cost = Contribution + net loss

We can now apply all these relationships to the question given:

Fixed cost = 1720 + 280

                 = 4,000

Contribution margin ratio = 1720/400 = 43%

Break-even sales ($) = 4000/0.43

                                        = $4,651

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