Answer:
Check the explanation
Explanation:
1. What would the fixed costs and unit variable costs be under the proposal. Use the unit variable cost and sales price to calculate the unit contribution margin:
Fixed cost Variable cost per unit Contribution Margin per unit
(sales price – VC)
4800+4320 = 9120 22.50-8.50 = 14.00 37.50-14 = 23.50
2) Break even = 9120/23.50 = 388 Units
So the breakeven under the new proposal is 388 Units.
Answer:
b. None of the listed answers
Explanation:
EBITDA means earnings before interest , tax, depreciation and amortization, whereas operating is the gross profit minus all operating costs, since depreciation and amortization, which are operating costs would have been deducted in arriving at EBITDA, it means operating income and EBITDA are not the same.
Net income is gross profIt minus interest,tax ,depreciation and amortization, hence, it is a far cry from EBITDA.
Note also EBITDA is not recognized by generally accepted accounting principles (GAAP) as a performance measure
Answer:
Profit making and survival
Explanation:
The main objectives that a business might have are: Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
