Screening. This is the process of gathering a focus group, distributing the product and gathering the opinions of the group before selling the product
Answer:
1. 2,300 units
2. $36,800
3. $39,200
Explanation:
The computation of company’s break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= $9,200 ÷ ($16 - $12)
= $9,200 ÷ $4
= 2,300 units
2. The computation of break-even point in dollar sales is shown below:-
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= $2,300 × $16
= $36,800
Contribution Margin Ratio = (Sales Price Per Unit - Variable Expense Per Unit ) ÷ Sales Per Unit × 100)
= ($16 - $12) ÷ $16 × 100
= $4 ÷ $16 × 100
= 25%
Break Even Sales = Fixed Expenses ÷ Contribution Margin Ratio
= $9,200 ÷ 25%
= $36,800
3. The computation of new break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= ($9,200 + $600) ÷ ($16 - $12)
= $9,800 ÷ $4
= 2,450 units
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= 2,450 units × $16
= $39,200
Answer:
Small businesses usually deal with known and established products and services, while entrepreneurial ventures focus on new, innovative offerings. Because of this, small business owners tend to deal with known risks and entrepreneurs face unknown risks.
<span>Profit = ($1.7 - $0.6) * 20,000 - $6,000 = $16,000
ROI = ($16,000 - $100,000)/$100,000 = -0.84</span>
Answer:
d. $25,900
Explanation:
The computation of the total selling expenses are shown below:
Sales representative commission $19,500
Monthly salary of sales manager $4,400
Advertising expense per month $2,000
Total selling expenses $25,900
The commission is computed below:
= Budgeted sales × commission percentage
= $325,000 × 6%
= $19,500