The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
The break-even in monthly dollar sales is closest to $578,100
Explanation:
The formula for the calculation is
<u>CM ratio = Unit contribution margin ÷ Unit selling price
</u>
<u></u>
<u>Given that </u>
<u>Selling price of the product=</u>$185.00 per unit
variable cost=$55.50 per unit
fixed expense=$404,670 per month
<u></u>
= ($185.00 per unit − $55.50 per unit) ÷ $185.00 per unit
= $129.50 per unit ÷ $185.00 per unit = 0.70
<u>Dollar sales to break even = Fixed expenses ÷ CM ratio
</u>
= $404,670 ÷ 0.70
= $578,100
The break-even in monthly dollar sales is closest to $578,100
Answer:
a. used net cash of $2,000
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss -$13,000
Adjustment made:
Add : Depreciation expense $4,000
Add: Decrease in accounts receivable $5,000
Less: Increase in inventory -$8,000
Add: Increase in accounts payable $10,000
Total of Adjustments $11,000
Net Cash flow from Operating activities -$2,000
Adam Smith's invisible hand theory is the concept that in a market where people are free to buy and sell as they please, buyers will buy goods that sellers offer at prices that work for all parties.
Answer: Please refer to Explanation.
Explanation:
1. Honesty.
State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".
2. Persistence.
You can be persistent on the phone if you detect deceit in the secretary's tone.
For instance,
" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".
If it still doesn't work, ask for a convenient time you can call back.
Answer:
The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.
