Answer:
Break-even point in units= 2,000
Explanation:
Giving the following information:
Fixed costs= $6,000
Selling price= $6 each
Unitary variable cost= $3
T<u>o calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / 3
Break-even point in units= 2,000
Solution:
Reducing hours would reduce demand for commercial revenue hours by 20%, from 138 hours to 110 hours. At that level, the total contribution would be:
110 hours x ($800 - $71.5) = $80,135 or $20,398 less than at present.
Raising the cost to $1,000 per hr for commercial clients would less demand by 30%. In March, the request had been for 138 hrs and a loss of 30% will also end up leaving 97 hrs of demand (138 hrs x 70 = 96.6 hrs).
Demand x Contribution per hour = Contribution 97 hours x ($1,000 - $71.50) = $90,064.5
Compare to present:
138 hours x ($800 - $71.50) = $100,533
The monthly contribution to fixed costs and income at $800 is greater by $10,469 than the contribution expected at $1,000. Therefore, the income will be higher if we retain the $800/hour price.
Answer:
Arbitration
Explanation:
The arbitration process seems to be the best way to make the settlement process happen in this case. The arbitration process will be between labor and management as an impartial third party (arbitrator or arbitral tribunal) takes charge of the process. Once both parties have agreed to arbitraueb, the arbitrator then proffers powerful ways of ensuring dispute resolution in such a way that a mutual agreement is reached by both labor and management. Even though proferred solution shouldn't be compulsorily adopted by the conflicting parties.
Answer:
Insurance is the procedure by which persons or companies exposed to a specific risk agree with an institution specializing in compensation for damage that the institution will indemnify the damage caused when the risk materializes. The resulting contract is called insurance.
From a commercial point of view, insurance can be defined as the means by which the cost of incidental damage can be converted evenly into a continuous annual cost on an annual basis.
Answer:
Explanation:
Nokia is trading in US at $ 7.18 per share and at € 6.08 on Helsinki stock exchange.
Law of one price - Price of Nokia must be the same in both the countries. So current exchange rate is $7.18/€6.08 = $1.18/€
