<span>The main problem at Bond's Gym is excess demand. This means that negative incentives are the best way to go. Positive incentives would only increase demand at the gym, making the problem worse. however, negative incentives would create a positive result for the owner, as he would make more money and expand his gym, allowing him to meet more consumer demands.</span>
Answer:
Break-even point in units= 100,000 units
Explanation:
Giving the following information:
Your variable costs to produce each bottle is $1.
Your fixed costs are $100,000/year.
How many bottles must you sell at $3/bottle to cover your fixed costs and earn your target profit of $100,000
<u>To calculate the number of units to be sold, we need to use the following formula:</u>
<u></u>
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (200,000) / (3 - 1)
Break-even point in units= 100,000 units
Answer:
$15.625
Explanation:
The computation of the no-arbitrage U.S. price of one ADR is shown below:
= Euro U.S. dollar spot exchange rate × closing price per share × number of shares
= €.625 × €5 per share × 5 shares
= $15.625
Simply we multiply the Euro U.S. dollar spot exchange rate with the closing price per share and the number of shares so that the correct price of one ADR can be come
Accounting cycle has various steps to discuss, which are listed below,
Explanation:
- The first step in accounting cycle is to analyze and have a record of transactions.
- Post closing trial balance is an optional step in the accounting cycle.
- Journalizing and posting the closing entries are the steps required to complete throughout the accounting period.
- Adjustments of accounts, preparing the financial statements and closing accounts are completed at the end of accounting cycle period.
- The last step in the accounting cycle is to post closing trial balance.
Answer:
37.00%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
Particulars Sporting Goods Sports Gear Total
Contribution Margin Ratio 30% 50%
Sales Mix - Weights 65% 35%
Weighted Contribution Margin 19.50% 17.50% 37.00%
We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come