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
False ...................
Calculate, from the following information accumulated by Bob Verna, the adjusted cash balance at the end of July.
Bank statement ending cash balance $6,000
General ledger cash balance ending 8,500
Bank monthly service charge 90
Deposits in transit 5,000
Outstanding cheques 3,000
NSF cheque returned with bank statement 410
Answer: above-average profits
Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.
Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.
Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.
Answer:
b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
The most powerful of the five competitive forces is usually the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. When the amount of competitors (sellers), as well as the quantity of goods and services they provide are large, the lesser their competitive strengths or advantage in the market because the customers have a large pool of finished goods and services to choose from and vice-versa.
