Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
Answer:
True. Peggy has been invited to participate to a focus group.
Explanation:
A focus group is a meeting of a small group of people, for a moderate amount of time (usually 1 or 2 hours), with the goal of discussing a specific subject.
Focus groups have a moderator, and the participants know the objective of the focus group.
In this case, Peggy will be participating in a focus group, with 9 other people, and the subject that they will discuss is the concept of the new health and fitness magazine.
Answer
Capital
Explanation
Capital as a factor of production consists of tangible and intangible goods which are produced in the environment and utilized as inputs to further produce more goods and services. Human made resource such as money/wealth is used to produce more wealth by facilitating buying of capital equipment which aid in process of economic development.
Answer:
Correct option is (c)
Explanation:
Before a business is about to start, a written proposal that states the mission vision, finance, marketing, operational goals and objectives. It also states the short term and long term plans and how they would be achieved.
A business plan help in seeking funds from banks or investors. It also helps companies in staying in track.
Answer:
D. Local content Rules
Explanation:
Local content rules/requirements emphasize that a certain proportion of a product be manufactured from locally supplied components as opposed to imported inputs in the host country. The aim of this is to safeguard and promote employment in domestic country, promote the growth of domesatic industries, and facilitate technological advancement in these industries and in the economy as whole.
