Two main reasons a company will market its products are to ____

Winston Co. has variable costs of $5 per unit and a selling price of $10 per unit. Fixed costs are $100,000. Planned unit sales

jeka94

Answer:

MOS( in %) = 20%

Explanation:

<em>Margin of safety (MOS) determines the amount by which expected sales exceeds the break-even point (BEP). </em>

MOS can be calculated as follows:

MOS (units) = Budgeted sales - BEP

BEP= Fixed cost for the period / contribution per unit

Contribution per unit = Selling price - variable cost per unit

Contribution per unit = $10 - $5 = $ 5

BEP (units) = 100,000/ 5= 20,000

MOS (in units) = 25,000 - 20,000 = 5000 units

Margin of Safety as a %

(5000/25,000 ) × 100= 20 %

MOS( in %) = 20%

6 0

3 years ago

When doing business in _____, it is important to understand that potential customers want to develop a personal relationship bef

MA_775_DIABLO [31]

Answer: Latin america

Explanation: The following case relates to international management activities. The business and management styles of the organisations changes with the change in the culture of the country in which the business is to be done.

In Latin america, the word of mouth is considered to be more important than the paper contracts. The firms around the coutry wants to ensure that the other party is reliable. The dinner is the country usually happens late in 9AM and discussions is don on the dinner.

Hence from the above we can conclude that the correct answer is latin america.

3 0

4 years ago

A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?

Digiron [165]

Answer:

Total allocated overhead= $1,840,000

Explanation:

Giving the following information:

Department Expected use of Driver Cost

Ordering and Receiving 2,000 $800,000

Mixing 50,000 1,000,000

Testing 1,500 900,000

Production information for Slime is as follows:

Expected use of Driver

Ordering and Receiving 1,600

Mixing 30,000

Testing 1,000

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and Receiving= 800,000/2,000= $400 per order

Mixing= 1,000,000/50,000= $20 per mixing hour

Testing= 900,000/1,500 = $600 per test

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Ordering and Receiving= 400*1,600= 640,000

Mixing=20*30,000= 600,000

Testing= 600*1,000= 600,000

Total allocated overhead= $1,840,000

6 0

3 years ago

Recent regulation such as the Riegle-Neal Act of 1994 has removed some of the federal banking laws that formerly constrained pro

PIT_PIT [208]

Answer:

The correct answer is diversify geographically.

Explanation:

Diversification is one of the strategies most used by companies when it comes to expanding their market horizon. In this sense, diversifying is synonymous with expansion, growth, investment and openness.

In general, companies that are committed to diversification seek new market niches or commercial possibilities. This may be motivated by several reasons, ranging from corporate growth opportunities to the implementation of internal restructuring plans.

7 0

3 years ago

Dove, Inc., had additions to retained earnings for the year just ended of $630,000. The firm paid out $105,000 in cash dividends

Andreas93 [3]

Answer:

(A) Earnings per share = $1.19 per share, Dividends per share = $0.17 per share, and book value per share is $11.69 per share

(B) Market-to-book ratio = 2.52 times, and the price-earnings ratio is 24.79 times

(C) Price-sales ratio is 1.73 times

Explanation:

(A) Earning per share = (Net income) ÷ (Number of shares)

where,

Net income = Retained earnings + dividend paid

= $630,000 + $105,000

= $735,000

And, the number of shares are 620,000 shares

Now put these values to the above formula

So, the value would equal to

= ($735,000) ÷ (620,000 shares)

= $1.19 per share

Dividend per share = (Total dividend) ÷ (number of shares)

= ($105,000) ÷ (620,000 shares)

= $0.17 per share

Book value per share = (Total equity) ÷ (number of shares)

= $7,250,000 ÷ (620,000 shares)

= $11.69 per share

(B) Market to book ratio = (Market price per share) ÷ (book value per share)

= $29.50 ÷ $11.69

= 2.52 times

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $29.50 ÷ $1.19

= 24.79 times

(C) Price sales ratio = (Market price per share) ÷ (Total sales per share)

where,

Total sales per share = (total sales) ÷ (Number of shares)

= (10,550,000) ÷ (620,000 shares)

= $17.01 per share

So, the price sales ratio = $29.50 ÷ $17.01

= 1.73 times

6 0

3 years ago

Two main reasons a company will market its products are to _____. (Select all that apply)