In this scenario, Havtol Inc. is using a web survey system. From the description of the situation, it is clear that the company is using an online system in obtaining feedback from consumers thorough a web survey. It is a system where opening a website would prompt the user to a separate page containing questions in a form a survey while the answers are being collected to a certain server where the company is managing. In this way, they can monitor how well are their products and are the responses of their consumers good or bad. They can easily check whether their methods in advertising are effective.
Answer:
It need sales figure of 22,125 units per year to break even considering their currnent contribution marign and fixed cost.
Explanation:
fixed cost per year:
equipment lease cost: 288,000
other overhead cost <u> 48,300 </u>
total fixed cost 336,300
contribution per unit:
sales revenue - variable cost
39.75 - 14.55 = 15.20
each units generates $15.20 dollar we need to save up for 336,300 dollars
break even point:
336,300 / 15.20 = 22,125 units
Answer:
having declining price levels affect the reinvestment rate of your current income stream
To calculate:
1) Net income (loss) for 2010.
2) Operating cash flow
Solution: 1)
Sales = $850000
Less: Cost of goods sold = $610000
Gross profit = $240000
Less: Administrative and selling expenses = $110000
Earning before Interest, Tax and Depreciation = $130000
Less: Depreciation = $140000
Earning before Interest and Tax (EBIT) = ($10000)
Less: Interest expense = $85000
Earning before tax (EBT) = ($95000)
Less: Tax = $0 (as company is having negative EBT or loss hence no tax)
Net loss = $95000
2) Operating cash flow
EBIT + Depreciation - Tax
Wherein, EBIT = Earning before Interest and Tax
($10000) + 140000 - 0 = $130000
