C) because lenders can evaluate their risk more easily using existing data on how that business has already been performing.
Answer:
d. $1,080,000
Explanation:
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution per unit = Selling price per unit - ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling )
Contribution per unit = $160 - ($22 + $15+ $12 + $3)
Contribution per unit = $160 - $52
Contribution per unit = $108 per unit
Contribution margin for the next year = $108 per unit * 10,000
Contribution margin for the next year = $1,080,000
Answer:
Slow industry growth
Explanation:
Slow industry growth is the growth that shows the industry at a slow rate or no growth is there.
It could arise when the consumer does not opt for a high demand
In the given situation, it is mentioned that when competitive firms aggressively trying to attract the customers of competitors so this is an indication of the slow economic growth and hence, the same is to be considered
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Unit sales 50,000
Units Dollar sales $ 500,000
Fixed costs $ 204,000
Variable costs $ 187,500
First, we need to calculate the unitary selling price and variable cost:
Unitary Selling price= 500,000/50,000= $10
Unitary variable cost= 187,500/50,000= $3.75
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 204,000/ [(10 - 3.75)/10]= $326,400
