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3 years ago

_____ is the method used to determine the number of units a firm must sell at a specific price to cover all costs.

Business

1 answer:

Aleksandr-060686 [28]3 years ago

3 0

Answer:

Breakeven analysis.

Explanation:

Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.

Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;

1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.

2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.

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(A bond forward) A certain 10-year bond is currently selling for $920 A friend of yours owns a forward contract on this bond tha

sleet_krkn [62]

Answer: -$100

Explanation:

Value of forward contract = Selling price - Forward price on bond

Forward price = Present value of cashflows + Present value of bond

Periodic rate = 7%/ 2 = 3.5% per semi annum

= 8% / 2 = 4%

3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.

= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)

= $1,020.342

= $1,020

Value of forward contract = 920 - 1,020

= -$100

4 0

3 years ago

2. What are the advantages of utilizing a targeted marketing strategy?

aleksklad [387]

Answer:

Explanation:

Target marketing is a way of focusing your advert on specific people, location, age group, interest, in order to have a maximum yield.when utilizing target marketing strategy, there are a lot of advantages that are attached to it as discussed below;

Precise advertisement ; when you have a target market you are aiming at you will not waste your energy in running numerous advertisements to the target area you only advertise what they need. e.g if a certain area in London demands for ladies bags so often and you make both female bags and male bags, your advert will definitely be on the bags that are demanded more often.
It saves cost ; cost of running advert for so many goods and services will be reduced because you already know your target customers you only advertise what they needed with little money and more result.
Loyalty; when you channel your strength in an area of target you become more reliable and trustworthy and you start to gain loyalty from your existing customers and referrals from them.
Increased customer base your customer base will increase because your customer base has friends and family so they introduce you to them and from there your customer base increases.

8 0

3 years ago

Read 2 more answers

Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated constructio

Evgesh-ka [11]

Answer: $300,000

Explanation:

Total expected costs = cost incurred to date + estimated cost to complete

= 1,200,000 + 3,600,000

= 4,800,000

$Percentage of completion=\frac{Cost\ incurred\ to\ date}{Total\ expected\ cost}\times 100$

$Percentage of completion=\frac{1,200,000}{4,800,000}\times 100$

= 0.25

= 25%

Profit = contract revenue - Total expected costs

= $6,000,000 - 4,800,000

= $1,200,000

Cumulative gross profit = Profit × Percentage of completion

= $1,200,000 × 0.25

= $300,000

Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.

4 0

3 years ago

When the stockholders receive a dividend, how would this affect the equity of a business?.

morpeh [17]

Assets and total equity will both be decreased is When the stockholders receive a dividend, how would this affect the equity of a business.

<h3>Who are the stockholder?</h3>

Stockholders are the people who have purchased the stocks and have invested in the particular firm, they are the people. The stockholders hold some of the share of any company, which they can sell or purchase anytime.

Thus, Assets and total equity will both be decreased is When the stockholders

For more details about Stockholders, click here:

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2 years ago

Sidwan, owner of Jacuzzi Warehouse, said, "We have to focus on our customers and how we can beat the competition, so we have to

hjlf

Answer:

The remaining part of the question is:

A) clan culture.

B) goal-driven agenda.

C) adhocracy culture.

D) market culture.

E) focused approach.

Correct Answer:

D) <u>market culture. </u>

<u></u>

Explanation:

His suggestion of his research and development team to develop innovative products for the emerging changes in markets for his customers shows that, Jacuzzi Warehouse has a market culture.

5 0

3 years ago