Answer:
a. Breakeven point: 1,500 units.
b. Kid´s Corner would have to sell 2,333.33 units to earn $10,000 in operative income.
Explanation:
a. breakeven point in units
breakeven point= 
b. Operating income = Total revenue - direct costs-indirect costs
$10,000=$25*X-$13*X- 18,000
Where X is the amount of units to sell
Isolating X from the equation, we have:
12X=28,000
X=28,000/12
X= 2,333.33
Answer:
1. 0.5
2. $360,000
3. $25,500
Explanation:
The BEP which is the break even point is the point where the company's sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
CM Ratio
= 1500000/3000000
= 0.5
Break even point in $ = Fixed cost/ CM ratio
= $180,000/0.5
= $360,000
If the sales increase, the variable cost will also increase as both are dependent on the level of activity.
If sales increases by $51,000, number of units sold
= $51,000/$120
= 425
Increase in variable expense
= 425 * $60
= $25,500
Increase in net operating income
= $51,000 - $25,500
= $25,500
Answer:
Letter A is correct. <em>Face morale and motivation problems.</em>
Explanation:
A company with a high degree of formalization is a company with a vertical organizational structure. Vertical management is represented by a classic business structure, based on the principle of top-down authority and command and a fixed organization chart.
Being an inflexible organizational model, there are some disadvantages, such as difficulty in interaction between areas and teams, communication failure due to communication noise, which can lead to the creation of moral conflicts and also the lack of motivation of employees, which due to Organizational rigidity is not so active in the process of contributing ideas and suggestions to organizational objectives, as decision making is centralized and concentrated at the top of the hierarchy.
Answer: a. $120,000.
Explanation:
The inventory lost can be calculated by;
= Opening inventory + Purchases - Cost of Goods sold
Cost of goods sold = Sales - Markup on price
= 600,000 - (600,000 * 25/125)
= 600,000 - 120,000
= $480,000
Inventory lost = 100,000 + 500,000 - 480,000
= $120,000
Answer:
E) assess the current reality
Explanation:
- Zara's method of identification of the customer's needs and wants and then categorization them as per the planning perspective and strategic management involves the assessment of the current reality trends in the market and keeping a check on the demands of the customers.
