Answer:
He would need to sell 130 ticket packages to break even
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Variable cost is cost that varies with output. If output is zero, no variable cost would be incurred.
Fixed cost is cost that does not vary with output.
= 130
Answer:
1. 73 %
2. 27 %
3. $60,000
4. Ways to increase projected operating income without increasing total sales revenue :
- Reduce the variable costs per unit
- Reduce fixed overheads
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
Where,
Contribution = Sales - Variable Costs
= $88,000 - $23,760
= $64,240
Then,
Contribution Margin Ratio = $64,240/ $88,000 × 100
= 73 %
Variable Cost Ratio = Variable Cost / Sales × 100
= $23,760 / $88,000 × 100
= 27 %
Break-even sales revenue = Fixed Costs ÷ Contribution Margin Ratio
= $43,800 ÷ 0.73
= $60,000
<u>Ways to increase projected operating income without increasing total sales revenue :</u>
- Reduce the variable costs per unit
- Reduce fixed overheads
Answer: Suggestive selling
Explanation: the recommendation to purchase an extended warranty service in addition to the purchase of a laptop computer by the salesperson is an example of suggestive selling. It is a form of stimulus-response presentation involving suggesting an initial or an additional purchase (the extended warranty). It is also known as add-on selling or upselling and is used to increase the purchase amount of the buyer thus increasing revenue of the store.
What the managers are asking for steve to use is a <span>behaviorally anchored rating scale or most commonly called in the acronym as BARS. The numerical range of rating of this scale is between 5 to 9 which helps describe the type of performance incurred by the employee from poor to outstanding. This is used in the appraisal process of employees.</span>
<span>Capitalist economic policies caused Kenya's economy to prosper.</span>
