Answer:
Fixed costs= $300,000
Explanation:
Giving the following information:
Selling price per unit= $20
Variable expenses= $14
Break-even point in units= 50,000
<u>To calculate the fixed costs, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
50,000= fixed costs / (20 - 14)
50,000*6= fixed costs
Fixed costs= $300,000
The use of intermediaries is the primary difference between the two.
Explanation:
Direct distribution channel is one in which the consumer is directly connected to the manufacturer and there is no use of a distribution system that is separate from them and there are no intermediaries.
The contact between the two is direct.
To the contrary in an indirect distribution channel there is no direct connection between the manufacturer and the person who is actually buying the product and the business is being mediated by the middlemen.
Answer:
Days in Inventory = 63 days
Explanation:
We know,
Days in Inventory = 365 days ÷ Inventory Turnover
Given,
Inventory turnover = Cost of goods sold ÷ Average Inventory
Inventory turnover = 16,936 ÷ [( $2,410 + 3,430) ÷ 2]
Inventory turnover = 16,936 ÷ (5,840 ÷ 2)
Inventory turnover = 16,936 ÷ 2,920
Inventory turnover = 5.8
Putting the values into the formula, we can get
Days in Inventory = 365 days ÷ Inventory Turnover
Days in Inventory = 365 days ÷ 5.8
Days in Inventory = 63 days
Answer:
it could misslead or make there buisness fail
Explanation:
Answer:
Payback Period = 4 Years
Net Present value = $15692
Internal Rate of Return = 17.82%
Modified Internal Rate of Return = 14.20%
Explanation:
Payback Period = (Initial Investment / Net Cash inflows)
Payback Period = $61500/15000 = 4 Years
Net Present value using PVIF table value at 11% over the period and discount them given cash flows gives us discounted cash flows.
Year CF PVIF 11%,n Discounted CF
0 -61500 1.000 (61,500)
1 15000 0.901 13,514
2 15000 0.812 12,174
3 15000 0.731 10,968
4 15000 0.659 9,881
5 15000 0.593 8,902
6 15000 0.535 8,020
7 15000 0.482 7,225
8 15000 0.434 6,509
Summing up the discounted Cash flows gives us the Net Present value of $15692
Internal Rate of Return:
Using Excel Function IRR @ 17.82% applying it on cash flows gives the rate where Present value of Cash flows is Zero.
Modified Internal Rate of Return:
Modified internal rate of return is at the level of 14.20% as it lower than IRR because it assume positive cash flows invested at cost of capital.
